Farm Growth and Survival: Econometric Evidence for Individual Farms in Upper Austria

Abstract This article investigates survival and growth of more than 50,000 Upper Austrian farm households within a maximum likelihood sample selection framework. The results suggest that age, schooling and sex of the farm operator, size of the farm family, and off‐farm employment status, as well as initial farm size, significantly influence farm growth and survival. The present study provides support for the notion of a “disappearing middle” in the size distribution. The process of polarization is closely related to the off‐farm employment status of farms. Correcting for sample‐attrition bias is important when analyzing the performance of part‐time farms.