Evaluation of the factors that ensure long-term sustainability of family farms
This study analyses the factors that ensure long-term sustainability of family farms. A comprehensive questionnaire was used to analyse 12 factors and 41 sub factors in family farms in South Africa. A total of 205 questionnaires of 31 family farms were gathered and used for the statistical analysis. Results show that the following challenges need attention to ensure the continuation of the farm as a family farm in the future: corporate governance; performance measurement and compensation of family members; ownership succession; family harmony between all family members and management succession planning. Recommendations are made to ensure that family farms overcome these challenges to enable the family to successfully transfer the farm to the next generation of family members.
Keywords: Family farm; unique challenges; family dynamics; management succession; ownership succession.
South African Journal of Agricultural Extension Vol. 36 (1) 2007: pp. 1-27