Business Expansion and Downsizing and Its Factors in Community-Based Group Farms: Empirical Study Based on the Questionnaire in Yamaguchi Prefecture

Abstract

Community-based group farms are expected to become sustainable farm businesses that preserve local farmlands and communities. It is important to explore whether these farms can meet these expectations. This study aims to identify business expansion and downsizing and its factors in community-based group farms by conducting a statistical analysis using data from a questionnaire survey of 145 farms in Yamaguchi Prefecture. We found several factors that affect farms’ orientation toward expansion or downsizing. Specifically, younger members’ participation in farm decision-making and employment of young employees significantly positively influence farms’ orientation toward expansion. However, profitability has no significant influence on farms’ orientation. Farm size and diversification negatively influence farms’ orientation toward downsizing. Population changes and non-farmers’ participation in agricultural-resource management in the farms’ located area positively affect farms’ orientation toward expansion.