The impact of asset specificity on farmland inheritance willingness: Evidence from apple growers in China

Abstract

ABSTRACT: Based on detailed household survey of apple farmers in Shandong and Shaanxi, this article used a binary logistic regression model to examine the impact of asset specificity on farmers’ intergenerational succession arrangements of apple orchard. The results showed that the farmers’ intergenerational willingness of younger generation to succeed them is generally weak. The specificity of human capital, physical assets, land assets and geographic location significantly impacted on farmers’ intergenerational succession of family-operated apple orchard. Especially, the production technology level of apple planting decision-makers, the value of orchard facilities and machinery owned by apple growers, orchard topography, orchard fertility, government support, and the length of village hardened roads have significantly positive impacts on farmers’ willingness. The education achievement of apple planting decision-makers, orchard irrigation area, and the number of village apple disasters negatively impacted farmers’ willingness. Therefore, technical training should be intensified to effectively increase the human capital of farmers, infrastructure construction should be strengthened to improve apple production conditions, and professional farmers’ operations should be supported to develop moderate-scale operations.