Seminar - Martin Nordin

Abstract
This study evaluates the setting up aid in the Rural Development Programme for Sweden. The generational renewal problem in agriculture is high on the political agenda. Yet, it is difficult for young farmers to become managers of a farm of their own. Assessing whether the setting up aid succeeds to make it easier for farmers to become managers, we investigate if the aid, firstly, speeds up the process and, secondly, affects the income of the farm. The empirical approach builds on a regression discontinuity design and explores an age 40-eligibility requirement in the setting up aid. This design models a cut-off effect that enables us to estimate the causal effect of the aid. Farmers who are just eligible for the setting up aid are comparable to farmers who just missed the eligible cut-off. We find that the setting up aid has a significant impact on the transition to farm management, as well as it increases farm income and farm survival. Consequently, the aid is likely to fulfil its aim of attracting young people into farming.

About Martin

Martin Nordin, Associate professor

Martin Nordin has a Phd in Economics from Lund University with focus on labor market economics. His research is empirical and concerned with the relationship between education and the labor market. At AgriFood Martin evaluates the effects of the Common Agricultural Policy and analyses labor market related issues within agriculture.

Link to webpage: http://agrifood.se/engStaffDetail.aspx?fKeyID=119