FARM_VALUE

Objective

The goal of the project is to contribute to scientific knowledge andprovide new insights to agricultural professionals and public policymakers on the transfer of farms, with a particular focus on the role of a farm’s value in this process. The goal is to conduct, for the first time, an in-depth assessment of how a farm’s value is determined—from both economic and sociological perspectives—and how these two perspectives can (or should) be integrated in the context of farm succession. The value and transfer of farms have never been studied by combining economic and sociological approaches, even though this approach offers clear benefits: generally, the value of farms used by professionals in the context of a transfer is characterized by economic or financial parameters; however, these parameters do not take into account social value (such as the fact that capital has sentimental value), which can be so high that it hinders the transfer.

The objectives are: (1) to provide an update on the state of the art regarding the valuation of a farm and to suggest alternative approaches, particularly those drawn from the field of finance; (2) to take into account the diversity of the components of a farm’s value, particularly intangible capital—whether economic aspects (such as the farm’s roots in a region, managerial skills, subsidy entitlements, or contracts) or sociological aspects (such as professional knowledge); (3) to link the value of a farm to its transfer, notably by studying farmers’ wealth accumulation strategies, the performance of transferred farms, and the determination of the value of shares in the case of corporations.

Partners

AGIR Agroecology - Innovations - Territories
LASA Laboratory of Sociology and Anthropology
PjSE Paris Jourdan School of Economics
SMART-LERECO Agricultural Structures and Markets, Resources, and Territories
Territoires UMR Territoires
UPD - CERLIS Paris Descartes University - Center for Research on Social Ties

Project Coordinator:
Laure Latruffe
Agricultural Structures and Markets, Resources and Territories

Funding Agency: National Research Agency (ANR)