Family Farm Inheritance in Slavonia Region, Croatia: Agricultural Economics (AGRICECON) January 2010
Family Farm Inheritance in Slavonia Region, Croatia: Agricultural Economics (AGRICECON) January 2010
Family Farm Inheritance in Slavonia Region, Croatia: Agricultural Economics (AGRICECON) January 2010
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Abstract: The aim of the study was to determine the chances of the Slavonian family farms for social reproduction in the
next generation and to determine attitudes of farmers towards some aspects of family farm inheritance and the possible
ways of preventing the division of land. The research was carried out on a sample of 202 family farms. The analysis showed
that the chances to remain as integral production units in the next generation are realistic for only 48% of family farms. The
traditional pattern of behavior is obvious with regard to inheritance and to postponing the transfer of management and
control of the farm resources. The majority of the Slavonian farmers find that it would be proper if the state were to intro-
duce special measures to regulate the integrity of the land and to offer subsidies and easements for the “entry” of the young
into the agriculture.
Abstrakt: Cílem předkládané studie bylo vymezit možnosti rodinných farem ve Slavonii vzhledem k sociální reproduk-
ci v dalších generacích a vymezit postoje farmářů ve vztahu k některým aspektům dědění rodinných farem a možných
cest, jak přitom zabránit drobení půdy. Výzkum zahrnoval vzorek 202 rodinných farem. Analýza ukazuje, že pouze 48 %
rodinných farem má reálnou šanci zůstat integrálními produkčními jednotkami v další generaci. Ve vztahu k dědění je zde
zřejmé přetrvávání tradičního vzorce a odkládání převodu řízení a kontroly farmy a jejích zdrojů. Převážná část rodinných
farmářů ve Slavonii by považovala za vhodné, aby stát zavedl zvláštní opatření k regulaci integrity půdy a nabízel dotace
a další formy podpory usnadňující vstup mladé generace do zemědělství.
Klíčová slova: rodinná firma, dědický proces, dědictví, následník, Slavonie, Chorvatsko
In the mixed economic model of the rural Croatian Gazette 86/2002) defines the family farm as “an inde-
regions development (dispersed concept of ruris), an pendent economic and social unit based on ownership
important position belongs to the production poten- and/or exploitation of production resources and family
tial of agricultural sector because of different climate management in carrying out farming activities”. Thus,
conditions, relief and soil, which enable growing of a family farm (sometimes also referred to as peasant
numerous cultures 1 . The production structure of farm) differs from companies, trades and cooperatives
Croatian agriculture is dominated by family farms, registered for agricultural business.
highly heterogeneous regarding their size and produc- In 2009, the Farm Register had 190 672 entries,
tion: from natural to mixed and highly specialized of which 96% were family farms and 4% agricultural
production. The Agriculture Act, Article 2 (Official companies and cooperatives (Ministry of Agriculture,
1TheCroatian territory is divided into three natural and geographical regions: Pannonian and Peripannonian region,
mountainous region and Adriatic region.
Supported by the Ministry of Science, Education and Sports of the Republic of Croatia (Project ID: 178-1782223-2360
“Sociodemografska reprodukcija obiteljskih poljoprivrednih gospodarstva – Socio-demographic Reproduction of Fam-
ily Farms).
2According to the 2003 Agricultural Census, Croatia had 448 532 farm households with 1.9 hectares of agricultural land
on average. Most of these households produce to cover their own demand, and they are not entered into the Farm
Register. The Farm Register was generated in 2003, and registration is mandatory for all the farmers who sell their
products it the market and apply for subsidies or other agricultural supports.
3Total surface area of agricultural land in Croatia is almost 2.7 million hectares, of which 67% (1.8 million hectares) is
privately and 33% (about 890 000 hectares) state owned. The farms entered into the Directory use about 1.3 million
hectares.
4 In addition to maximum land holding introduced in the former state, high taxes were used to limit trade in private
agricultural land. Further, farmers were given an opportunity to enter into the disabled and pension schemes only in
1980.
5Before privatization (until 1990), about 400 agricultural and industrial combinates had about 1.2 million hectares of
cultivated land (Šundalić 2002: 211).
6It should be stressed that change in political and economic system happened under the war circumstances, which made
the transition process considerably more difficult and slowed it down. It affected agricultural development and the
consequences are still present – about 19 600 hectares of agricultural land is still contaminated with landmines.
tion of the basic socio-demographic characteristics more than 20 hectares of land (47.0%). The land area
of the respondents, their families and farms is given used by the farms ranges from 3 to 570 hectares.
in Table 1. The contingency analysis (χ² test) shows that most
The surveyed farms have more members than an socio-economic characteristics indicate no significant
average Croatian rural household (3.3 members). This differences between the full-time and part-time farms.
could be attributed to the fact that the farm families Statistically significant differences were noticed in the
generally have more children and the descendants level of education of the farm operators (χ² = 13.66,
commonly live together with the parents (cohabi- Cс = 0.26, P = 0.00), the size of agricultural land used
tation), which is true even for the young married (χ² = 48.31, Cс = 0.43, P = 0.00) and the prevalent
couples. Several generations quite often live together agricultural production (χ² = 10.75, Cс = 0.32, P =
in the same household 7. 0.01). In other words, the part-time farm operators
The surveyed farms use agricultural land areas which have a higher level of education than the full-time
are in average larger than it is common in Croatia, farm operators, the full-time farms cultivate, in aver-
so they are more relevant for the study. A large share age, considerably larger agricultural land areas, and
of farms (74.8%) takes the land under lease, and uses they are more oriented towards animal production
7Due to the economic conditions, the young, even the young married couples in Croatia frequently live with their par-
ents. A recent study on a representative sample of the young in Croatia shows that 76.6 % of the young aged 15–29
live with their parents (Ilišin and Radin 2002) .
unlike the part-time farms, which are more focused several heirs, which might result in marginalization
on plant production. of a farm as the production unit. Almost one third
of farms have an uncertain situation regarding the
succession (at least for the time being), since the
Patterns of inheritance owners have not decided who will take over the estate
or there is no successor. Considering the basic types
Most respondents consider their involvement in of inheritance, it was determined that there are no
farming to be a continuation of the family tradition, statistically significant differences between the full-
63.4% took the farm over from their parents, 28.2% time and part-time farms (P > 0.05).
by marrying into a farm family, and 8.4% bought land A more detailed description of the inheritance types
and established their own farm. and the identified heirs is given in Table 3. The table
A large majority of families surveyed has one or clearly shows that in the situation when only one heir
more children (93.6%), which might but need not be is designated (Type 1); the heads of the farm prefer
a guarantee that the farm will survive in the future. it to be a male heir. Traditionally, these are generally
Earlier studies carried out in Croatia have shown that sons or, to a smaller degree, other male relatives in
there is frequently a gap between the subjective desires families without children or with female descendants
and expectations of farmers and the motivation of only. Generally, farm inheritance by females is rare in
their heirs to take over the farm and get involved in Croatia, and in our case, a daughter or daughters as
agriculture (Brkić and Žutinić 1993). Answers to two the only heirs were found only in households without
questions (“Which relative will inherit the farm?” and a male descendant. We have even recorded the cases
“Has a potential heir assumed an obligation to take at the farms with children of different sex where the
over the farm?”) enabled us to establish the forms/ heads of the farms preferred the division of a farm
types of farm inheritance (Table 2). From these data, among the sons only. This confirms that the traditional
it is concluded that 50% of full-time farms and 45% of attitude towards inheritance has been maintained as
part-time farms will remain integral production units a life philosophy of many farmers.
in the near future. In one fifth of the surveyed farms, We have also determined that the preference of one
the land and other property will be divided among heir is more frequent at the farms with larger land
Full-time Part-time
level of agreement* level of agreement*
Statement P
(%) mean (%) mean
1+2 4+5 1+2 4+5
v1.
Agricultural land belonging to a family farm should
14.1 77.3 4.17 9.5 81.1 4.43 0.75
not be divided among the heirs, and the farm should
be taken over by a single successor
v2.
It is better for a farm if the successor were a male 25.8 55.5 3.57 37.8 43.3 3.01 0.03
child
v3.
State should regulate the integrity of family farm land 3.1 96.1 4.82 1.4 89.2 4.70 0.01
by special measures
v4.
28.9 51.6 3.41 19.1 46.5 3.45 0.03
Farm heir should compensate his brothers and sisters
v5.
State should encourage the young to “enter” the
2.3 95.3 4.77 1.4 91.7 4.68 0.34
agriculture by the allocation of state-owned land
and favourable loans
v6.
8.6 61.4 3.90 19.2 38.3 3.36 0.00
Farmers should plan to retire at earlier age
v7.
It would be best for a farmer without a successor
46.1 37.5 2.89 32.5 41.9 3.18 0.16
to give his estate/farm to the state in exchange
for a lifelong support
v8.
Farmers need a professional help in the succession 50.0 36.7 2.58 44.6 33.8 2.64 0.57
planning
v9.
The young in rural areas are not interested
50.0 23.8 2.61 46.6 26.0 2.75 0.88
in agriculture because the farmers have a poor
reputation in the society
v10.
There is a promising future for family farming 9.4 74.0 3.92 18.9 50.9 3.66 0.40
in Croatia
*1 = strongly disagree; 2 = disagree; 3 = neither agree nor disagree/do not know; 4 = agree; 5 = strongly agree
Contact address:
Ivo Grgić, Deparment of Agricultural Economics and Rural Sociology, University of Zagreb, Faculty of Agriculture,
Svetošimunska 25, HR – 10 000 Zagreb, Croatia
e-mail: [email protected]