LABOR USE IN THE FARM FAMILY BUSINESS

With recent attempts to reappraise and reform the Common Agricultural Policy, the family farm has attracted increased attention from policy-makers and researchers alike. This paper provides a conceptual definition of the 'farm family business' and argues that distinctive strengths and weaknesses result from the interaction of its two components - the family and the farm business. This general thesis is then illustrated with respect to the use of labour within the farm family business. The authors conclude that this business form may be more flexible and resilient than its non-family counterparts. At the same time, the family cycle makes it harder to match the demand for labour in the farm family business with the supply. This, together with constrained choices when employing or promoting staff, as well as the undervaluation of family labour by farmers, may contribute to lower levels of productivity.