What Explains Racial Differences in Farm Succession Planning? Evidence From Decomposition and Counterfactual Analysis

This paper examines racial differences in farm succession planning using survey data from Tennessee farmers. While observed differences between White and Black farmers are small, decomposition and counterfactual analyses show that structural characteristics, particularly farm size, would predict higher succession planning among White farmers. Conditional on these characteristics, Black farmers are equally or more likely to plan for succession. These findings indicate that similar outcomes mask unequal underlying conditions and suggest that policies aimed at reducing disparities in farm succession must address differences in land access and farm viability rather than focusing solely on planning behavior.