The succession effect within management decisions of family farms

The preparation of the farm transfer or farm exit is a process that starts in the consolidation stage of the farm life cycle. In this stage, the decision to transfer the farm or not is taken and the farm management is adapted to this decision. The objective of this paper is to model the succession effect on farm management. The results show that the succession effect plays a role from the age of 45. An early designation of the successor gives an incentive to invest and to improve the management.