An Analysis on the Determinants of Blueberry Farmers' Closing under the Compensation Program for Closing Orchards
2017
Lee, H.K., Korea Rural Economic Institute, Naju, Republic of Korea | Kim, T.K., Kyungpook National University, Daegu, Republic of Korea
The compensation program for closing orchards by the domestic measures due to FTA had been implemented. This paper analyzes the determinants of closing the farm. 315 blueberry farmers were sampled and surveyed to examine their decision under the program. Logit model estimation results show that factors influencing the decision to close down were management status, price forecast, age of 50s, age of 60s, career of 1~5 years and area of 5,000~9,999m². The more positive the current management status and price prospects, the lower the probability of closing. Age 50s and 60s showed a lower probability of closure than age 70s. Likewise, the first to fifth year of career is lower than the farmer who has higher than 11 years of career. The farming area of 5,000~9,999m² farms was higher than that of 0~4,999m³ farms. The marginal effects are similar to those of the logit model. The result of this paper may provide useful information in order to reform the compensation program for closing orchards.
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