4.5 Attitudes Toward Retirement and Retirement Plans
4.5.1 How Farmers Define Retirement
One of the questions raised in this study was how farmers themselves defined retirement. Men and women in both generations were asked to indicate whether retirement from farming meant having no responsibility for the farm, doing no farm labour, or selling or transferring the farm so that they were no longer owners.
Table 19 shows the responses of men and women in both generations. No one aspect of the meaning of retirement predominated. However, different family members placed somewhat different emphases on the importance of each of the elements. Retiring generation men and women were more likely to name exit from responsibility as part of their meaning of retirement rather than exit from work or ownership. In contrast, receiving generation women and men were most likely to name exit from farm work. None of these definitions are significantly different between generations, suggesting that both view retirement similarly.
Table 19
The Meaning of Retirement'
(Percentages of respondents who included each of three elements of retirement in their definitions.)
| Retiring Generation | Receiving Generation | |||
| Having little or no responsibility on | Men | Women | Men | Women |
| the farm | 64 | 60 | 49 | 43 |
| Doing little or no farm work | 50 | 54 | 56 | 57 |
| Having no ownership of the farm | 43 | 38 | 41 | 51 |
There were no significant differences in meanings of retirement between retiring generation and receiving generation women and men.
Similarities of definitions of retirement do not necessarily translate into a smooth transition as retiring members leave the business and receiving generation members enter. Table 20 shows a comparison of retiring generation members' definitions of retirement with receiving generation members' definition of entry. This comparison was undertaken in order to understand how each of the family members views her/his situation in the business.
Table 20 The Meaning of Retirement/Entry 1
| Retiring Generation | Receiving Generation2 | |||
| Men | Women | Men | Women | |
| Having little or no responsibility on the farm | 64 | 60 | ||
| Having responsibility for the farm | 893 | 75 | ||
| Doing little or no farm work | 50 | 54 | ||
| Doing all or most of the farm work | 674 | 42 | ||
| Transferring or selling the farm | 43 | 38 | ||
| Having ownership of the farm | 73 | 8l | ||
1 Retiring generation women and men were asked: "What does retirement from farming mean to you?" Receiving generation women and men were asked: "What does moving into farming mean to you?"
2 Assuming responsibility for die farm is significantly more important to receiving generation men than exit from responsibility is to retiring generation women and men
3 Entry into farm work is significantly more important to receiving generation men than receiving generation women
4 Assuming ownership of die farm is significantly more important to receiving generation women and men than is exit from ownership to retiring generation women and men
There are both generational and gender differences in these perspectives. Generational differences in perception of the importance of ownership are startling. While the vast majority of receiving generation men and women think that ownership of the farm is a prerequisite to entry, the majority of retiring generation parents do not see transferring ownership as a criterion for retirement. And while the majority of retiring generation parents see exit from responsibility for the farm as a part of retirement, a much larger proportion of receiving generation sons see the acquisition of management responsibility as part of entry. There were no significant generational differences in perceptions of importance of farm work as part of entry/exit. However, receiving generation women were less likely than their husbands to see doing all or most of the farm work as a prerequisite to entry.
In all, receiving generation farmers see control of the business through access to management and ownership as essential to entry. The fact that their parents are less likely to see exit from ownership and management as part of retirement points to a generational treadmill. Each generation must wait a long time to be in control and will transfer control reluctantly.
4.5.2 What Influences Farmers' Retirement
Regardless of the meaning of retirement, for most people there are certain issues that are likely to influence when and how they will retire. We asked people to rate the importance to them of several reasons for retirement including reducing their physical work load, establishing children in farming, pursuing other activities, reducing responsibilities and providing retirement income. Men and women in the retiring generation were asked how important to them was each reason for retirement, while women and men in the receiving generation were asked how important they thought each reason was to their parents (parents-in-law).
Table 21 indicates the importance of each of the reasons for retirement to all four groups of people. The most important reason given by both women and men in the retiring generation was to establish children in farming (65% of women and 69% of men). in the Generations Alberta study, the findings were similar with just over seventy percent of both retiring generation men and women citing the establishment of children in farming as an important reason for retirement. Similar proportions of receiving generation men and women also thought that this was important to their parents.
Table 21
Importance of Reasons for Retirement1
| % Who Said Reason was Important | ||||
| Retiring Generation | Receiving Generation | |||
| Men | Women | Men | Women | |
| Lighten physical workload | 53 | 36 | 60 | 61 |
| Establish children in farming | 69 | 65 | 62 | 66 |
| Pursue other activities | 19 | 37 | 39 | 33 |
| Reduce responsibilities | 38 | 28 | 40 | 22 |
| Provide retirement income | 40 | 41 | 42 | 31 |
1 Retiring generation women and men were asked: The following are reasons why you might retire from farming. "Please indicate how important each reason is to you by circling the appropriate number. Receiving generation women and men were asked: "The following are reasons you think your parents might retire from farming. Please indicate how important each reason might he to your parents by circling the appropriate number.
Few retiring generation men felt that pursuing other activities was an important reason to retire. Ironically, all other family members saw this as a more important reason to retire than did the older men. It seems likely that retiring generation men in fact have fewer outside interests than other family members and have little desire to do anything other than farm.
The majority of retiring generation men and women and men in the receiving generation thought that lightening physical workload was an important reason for retirement. Fewer retiring generation women (36%) agreed. The old homily that women never retire seems appropriate here. Retiring generation women probably foresee little difference in their workload after retirement. Alternately, retiring generation women may not see lightening physical workload as important because they do less direct farm labour than men.
Although exit from responsibility is an important part of retiring generation men's definition of retirement, a minority (38%) said that reducing responsibility was an important reason for retirement. It may be that although older men believe that they will be retired when they have no further responsibility for the farm, they are not looking forward to handing over responsibility. Thus reduced responsibility would not be an impetus to retire. Retiring and receiving generation women rate reduced responsibility as even less important than do men, perhaps because they have less management involvement in the farm but a significant household management role that continues after retirement.
The importance of establishing children is perhaps predictable in families that are farming together. Reducing work and responsibility are not as important as we might have expected given the onerous nature of farming. And unlike their urban counterparts, farmers are apparently not longing to be free to do other things. It seems that without the pressure of the next generation to enter farming, there would be little impetus for farmers to retire.
Table 22 provides some support for the idea that retiring generation farmers are not eager to move out of the business. Men and women in both generations were most likely to state that an important reason to delay transfer of ownership was that parents were still actively farming. Neither land prices, transfer information nor lack of interest of children were seen as important reasons to delay transfer. The late transfer of ownership discussed earlier in this report seems therefore to stem from farmers' interest in remaining on the land, rather than from problems in effecting an exit from farming.
Table 22
Reasons to Delay Transfer of Ownership
% Who Said Reason was Important |
||||
| Retiring Generation | Receiving Generation | |||
| Men | Women | Men | Women | |
| Parents are still actively engaged in farming | 63 | 66 | 61 | 65 |
| Children are not interested in farming | 10 | 8 | 6 | 6 |
| Parent's can't think of anything else they would rather do | 32 | 42 | 37 | 30 |
| Parents can't afford to sell the farm at existing prices | 8 | 14 | 16 | 18 |
| Parents don't have sufficient information about how to transfer the farm | 3 | 3 | l | 2 |
| Children can't afford to take over the farm | 39 | 57 | 44 | 38 |
On the other hand, the majority of retiring generation women and men state that establishing children in farming and keeping the farm in the family are important reasons to transfer the farm to children (Table 23). The dilemma for these families seems to lie in the timing and equatability of transfer. Parents want to treat children fairly and provide some financial security to the next generation. Yet retirement seems unattractive to them.
Table 23
Reason for Transfer of Ownership at Retirement or Death
% Who Said Reason was Important |
||||
| Retiring Generation | Receiving Generation | |||
| Men | Women | Men | Women | |
| To treat all children fairly | 66 | 80 | 67 | 68 |
| To establish child(ren) in farming | 69 | 59 | 58 | 74 |
| To provide financial security for self or survivors | 64 | 65 | 67 | 67 |
| To keep the farm in the family | 67 | 57 | 57 | 59 |
| To keep the farm intact even if it means selling to an outsider | 14 | 15 | 8 | 12 |
4.5.3 Age of Retirement
Do farmers plan to retire at all? People in the older generation were asked whether they planned to retire and those in the younger generation were asked whether they thought their parents planned to retire. Of the retiring generation, 54% of women and 46% of men stated that retirement was their intention. Those in the receiving generation accurately estimated the retirement intentions of the retiring generation. Fifty-eight percent of the men in the receiving generation and 50% of the receiving generation women believed this was so. In the Generations Alberta study, much higher percentages of the retiring generation (75% of women and 71 % of men) said they planned to retire and even higher proportions of the Alberta receiving generation believed their parents planned to retire (79% of men and 87% of women).
The difference in retirement intentions between the New Zealand and Alberta studies is very large. Part of the difference may be due to the fact that recent changes in superannuation in New Zealand mean that farmers are unsure of their retirement income. However, it seems that much of the difference can be explained by the projections of retiring generation men of continued involvement in the farm through their seventies. Although value is placed on continuity of the business, the method to ensure continuity does not appear to be early retirement.
Table 24
Expected Age of Exit/Entry: Work, Management, Ownership
| Farm Work | Production Management2 |
Marketing Management3 |
Financial Management4 |
Ownership 5 | ||||||
| M | Range | M | Range | M | Range | M | Range | M | Range | |
Retiring Generation
| Men | 66 | 51-80 | 66 | 51-80 | 65 | 55-78 | 66 | 55-75 | 66 | 46-83 | |
| Women | 60 | 45-71 | 57 | 45-70 | 58 | 45-70 | 60 | 48-70 | 62 | 48-71 |
Receiving Generation
| Men | 32 | 2143 | 34 | 2146 | 34 | 21-46 | 35 | 22-46 | 38 | 25-53 | |
| Women | 33 | 24-45 | 38 | 28-48 | 35 | 26-41 | 35 | 26-46 | 37 | 26-50 |
Additional percentages of each group reported the following:
| 1 Farm work: | 7% of PFs have never done farm work 4% of CFs don't plan ever to do farm work 42% of PMs and 29% of PFs say "when I am unable or die" 26% of CMs and 29% of CFs say "when parents are unable or die" |
| 2 Production Management | 65 % of PFs have never done production management 37% of CFs don't plan ever to do production management 44% of PMs and 9% of PFs say "when I am unable or die" 24% of CMs and 14% of CFs say "when parents are unable or die" |
| 3 Marketing Management | 61% of PFs have never done marketing 37% of CFs don't plan ever to do marketing management 39% of CMs and 14% of PMs and 14% of PFs say "when I am unable or die" 19% of CFs say "when parents are unab1e or die" |
| 4 Financial Management | 42% of PFs have never done financial management 16% of CFs don't plan ever to do financial management 46% of PMs and 20% of PFs say "when I am unable or die" 22% of CMs and 27% of CFs say "when parents are unable or die" |
| 5 Ownership | 24% of PFs have never owned any pant of the farm 25% of CFs don't expect to own any part of the farm 42% of PMs and 30% of PFs say "when I die" 33% of CMs and 31% of CFs say "when parents die" |
Ironically, the women and men in the receiving generation said that they expected to stay in farming. Since all were farming with parents, they may see their best (or only) chance for entry through the family business.
Examination of the expected age of retirement from work, management and ownership of the business, reveals that for those who plan to retire, older men expect to have retired in their mid sixties and women in their early sixties (Table 24). The younger age for women probably represents the fact that women tend to be a few years younger than their husbands.
These ages of exit appear to conform quite closely to averages ages of retirement of those in non-farm occupations.
The startling finding concerning age of exit is the proportion of retiring generation men who do not expect to retire from various aspects of the business. Approximately 40% of retiring generation men do not expect to retire from farm work, management or ownership until they are unable to work or until they die. Approximately 30% of retiring generation women do not expect to retire from farm work or ownership until they are unable to work or until they die. Most retiring generation women have not been involved in farm management. For them, retirement from management is not personally relevant.
Despite the fact that many retiring generation men do not plan to exit from work, management or ownership, receiving men expect to be fully involved in the business in their thirties. Receiving women have similar expectations. Substantial percentages of receiving generation women and men are aware that their parents do not plan to retire. However, in all areas of the business, receiving generation women and men tend to underestimate the tenacity of the retiring generation.
4.5.4 Do Farmers Plan for Retirement
The literature on retirement of self-employed people suggests a paradox. Even though farmers need to do the most retirement planning because of the complexity of their businesses, they are unlikely to do formal planning. What kinds of plans do farmers make? And do they talk to each other about these plans? Among many types of planning that might be done for retirement, we asked people about three types: consultation with other family members about goals for the farm, personal financial planning, and use of professional resources or consultants.
Table 25 shows the percentages of men and women in the retiring generation who said they had done planning in each of these three areas. The table also shows the percentages of women and men in the receiving generation who think that their parents or parents-in-law have done this type of planning.
No general statement about planning can be made about the families in our sample. Almost all did informal planning with other family members and most did some personal financial planning. However, the use of formal services and consultants was mixed.
Almost all of the men and women in the older generation said that they had talked to each other and to their children about their goals for the future of the business. Younger men's perceptions of these family discussions were similar. Most felt that their parents discussed the future of the business and had talked to them about their goals. However, less than half (43%) of the receiving generation women said that the older generation had talked to them about their plans. It seems that daughters-in-law are not considered part of the family when it comes to family consultation about goals for the business. Somewhat more of the receiving generation women in the Alberta study (57%) said that they had been involved in discussion of the future of the farm.
Table 25
Retirement/Estate Planning
| Retiring Generation % | Receiving Generation % | |||
| Men | Women | Men | Women | |
| Have you done the following : | Have your parents done the following: | |||
| Family consultation about goals | ||||
| Talked to your spouse about your goals for the future of the business? | 94 | 86 | ||
| (Talked to each other about your goals for the future of the business?) | 94 | 90 | ||
| Talked to your children about your goals for the future of the business? | 90 | 82 | ||
| (Talked to you about their goals for the future of the business? | 86 | 43 | ||
| Personal financial planning | ||||
| Developed a net worth statement | 86 | 65 | 74 | 74 |
| Estimated my retirement expenses | 44 | 49 | ||
| (Estimated their retirement expenses?) | 51 | 66 | ||
| Updated my will in the last five years | 67 | 68 | ||
| (Updated their will in die last five years?) | 82 | 85 |
| Use of professional resources or consultants | |||||||
| Attended an estate planning or retirement workshop | 18 | 19 | 17 | 8 | |||
| Met with the following to discuss estate planning: | |||||||
| lawyer | 89 | 80 | 93 | 90 | |||
| accountant | 90 | 78 | 96 | 100 | |||
| financial planner | 17 | 15 | 17 | 14 | |||
| MAF farm consultant | 32 | 28 | 55 | 64 | |||
Fewer older men and women reported having done personal financial planning for retirement. Although most (86% of men and 65 % of women) said they had developed a net worth statement, less than half had estimated their retirement expenses. Those in the receiving generation overestimated the amount of personal financial planning done by their parents/parents-in-law, in estimating retirement expenses and updating their wills. Perhaps they hope that good planning would increase their chances of taking over the business.
Some professional consultants and resources are used more than others. Less than 20% of the retiring generation had attended any estate planning or retirement workshops compared to over half of the retiring generation participants in the Generations Alberta study. Retirement and estate planning workshops and home-study guides are readily available to Alberta farm families. This may explain their high levels of use.
Lawyers and accountants had been consulted by a majority of retiring generation men and women. However, significantly more retiring generation men had met with their accountant than had retiring generation women. Only a third of the retiring generation men and women had recently met with a MAF farm consultant. Overall, receiving generation men and women also overestimated the use of professional consultants by their parents. The use of lawyers and accountants is higher among the New Zealand than Alberta farmers. One reason may be the range of other planning options such as estate planning workshops and financial planners available in Alberta.
It is difficult to know whether the amount of planning done by people in the retiring generation is adequate to allow them to make sound business and family decisions about the farm. Although older couples and sons say that they discuss business goals, daughters-in-law do not always know what planning has been done. And daughters-in-law are especially vulnerable if planning goes on without them because their lives will be profoundly affected by the decisions that are made.
4.5.5 Farm and Off-Farm Investments
Farmers have a large capital investment in their businesses. A question of interest to farm consultants assisting farmers in retirement planning is how much farmers view their farm as having the potential to support them in their retirement. Given the recent restructuring of the economy and alterations to superannuation requirements, changes in farmers views of how well their farm would provide income in retirement were also important. Of additional interest is the propensity of farmers to make off-farm investments which will provide them with retirement income.
A series of questions were asked of all members of the family concerning their (or their parents') investments and belief that these investments would provide them with a 'pension fund'. Table 26 shows the results of two questions. The first question was: "When you were first planning for retirement did you look to the farm as your pension plan?". Receiving generation men and women were asked: "When your parents were first planning for retirement did they look to the farm as their pension plan?". Results of this question are seen under the "past belief" columns. The second question was: "Do you believe that the farm now has the potential to be your pension fund'?". Receiving generation women and men were asked: "Do your parents believe that the farm now has the potential to be their 'pension fund'?". Results of this question are see in the "current belief" columns.
The majority of retiring generation men and women initially believed that their farm would provide partial support for them in retirement, and still hold that belief. However, fewer now believe that the farm will provide their total pension fund than believed so in the past. In contrast, the majority of receiving generation women and men believed that the farm would provide part of their parents' retirement fund and continue to believe so.
Most (approximately 70%) retirement generation women and men say they have off-farm investments. Receiving generation men slightly overestimated whether their parents had off-farm investments. Seventy eight percent said they believed their parents had such investments. Receiving generation women overestimated the off-farm investments of their parents- in-law. Ninety two percent thought that parents- in-law had off-farm investments.
Table 27 shows that of those who have off-farm investments, virtually none believe that these investments will provide all of their pension fund. Receiving generation women and men are slightly more optimistic about the pension potential of their parents' investments than are the parents themselves.
In all, few people believe that either farm or off-farm investments will provide the total of their pension fund. Both the current economic situation and the changes to superannuation requirements appears to have made retiring generation women and men more sceptical about the ability of their farm to support them in their retirement. It may also be, for some of the respondents, not so much a ease of the potential of the farm to provide retirement income, as their awareness that the farm must provide partial funding if they are to retire. The change in perception of the farm's potential capability to act as a 'pension fund' may be a response to the recently enacted superannuation legislation that now requires greater individual provision for retirement. Thus it appears that detailed retirement planning is especially important to a generation of people who no longer count on the business to support them in their old age.
Table 26
The Farm as a Pension Fund (Past Belief/Current Belief)
| No % | Yes, partially % | Yes, totally % | ||||
| Past belief | Current belief | Past belief | Current belief | Past belief | Current belief | |
| Age/Sex | ||||||
| Retiring Generation | ||||||
| Men | 11 | 11 | 56 | 65 | 33 | 24 |
| Women | 17 | 13 | 59 | 75 | 23 | 12 |
| Receiving Generation | ||||||
| Men | 8 | 13 | 65 | 61 | 26 | 26 |
| Women | 13 | 23 | 58 | 52 | 29 | 25 |
Table 27
Off-Farm Investments as a Pension Fund (Current Belief)
| Age/Sex | No (%) | Yes, partially (%) | Yes, totally (%) | |
| Retiring Generation | ||||
| Men | 35 | 61 | 4 | |
| Women | 40 | 54 | 6 | |
| Receiving Generation | ||||
| Men | 25 | 68 | 7 | |
| Women | 31 | 56 | 13 | |
4.6 Farm and Family Stake
One of the purposes of this study was to better understand the personal stake or investment in the farm and the stake of each member of the farm family. From the review of the theory of developmental stake, it was considered that the theory did not encompass aspects of stake that might be present among generations who were working together. This lead to the development of the stake scale which was part of the questionnaire.
One aspect of the data analysis was to run a factor analysis to identify the underlying constructs or facets of stake. Factor analysis is used to develop scales from a series of items which are thought to measure a particular construct. In this case, our purpose was to develop a scale which taps stake or investment of individuals in farm and families. Factor analysis is a statistical technique through which inter-correlations among a set of items are grouped to result in a small number of underlying variables or factors. When the factor analysis of the stake items was conducted, two factors resulted. These were "Stake in the Farm" and "Stake in the Family". (For further discussion of the development of the stake scale, see Munro, Keating and Zhang (1993).)
The twelve items of the resulting Family and Farm Stake Scale (FFSS) are presented below. Stake in the farm is the investment of the individual in the farm and in family continuity on the farm. This is the kind of stake that is often talked about as farmer's commitment to the land and to seeing generations before and after continue on the land. Stake in this farm illustrates a commitment to the particular farm in which farm individuals live. For the older generation "this farm" is most likely to be the farm that they have worked to develop and for many of the younger generation it is the farm on which they were born. The items in this construct discriminate between this farm and other farms and emphasise the importance of maintaining continuity by keeping the farm in the family. The possible range of scores on Farm Stake is 8 to 40.
Stake in the family is similar to the original concept of stake. The items represent the importance of children and family and of family values such as communication and shared decision making. The possible range of scores on Family Stake is 4 to 20. These factors illustrate the complexity of the farm family/farm business. Farmers have inter-generational family relationships, investments in business and connections to the land that rarely exist in other rural or urban families.
FACTOR 1 - Stake in The Farm
I would rather not sell the farm to someone who was not part of the family.
It is important to me to take over the farm from my parents (pass the farm to my
children).
This farm is the only farm I would want to live on.
Farming is extremely important to me.
This farm is important to me.
Farming is the only occupation I really enjoy.
I work hard in order to make the farm successful.
I would like my parents/children to stay in farming.
FACTOR 2 - Stake in the Family
I am usually happy with the things my parents (children) do.
My parents (children) and I usually agree on important decisions.
I usually make decisions after talking to my children (parents).
I make a point of talking to my children (parents) every day.
4.6.1 Levels of Stake by Generation and Gender
Two one-way analysis of variance tests were conducted to identify possible family member differences by gender and generation in levels of stake. Our hypothesis was that since those in the receiving generation are dependent on the older generation for establishment in farming, those in the retiring generation have the most power. Thus it was expected that the receiving generation would have greater stake in both the farm and tile family than would those in the retiring generation.
One-way analysis of variance was run to determine if any significant differences existed among family members in various types of stake. Table 28 is a summary table that gives the results of these analyses. Receiving generation women have significantly lower stake in both farm and family than those in all other family positions. As well, receiving generation men have significantly lower family stake than retiring generation women and men.
Farming parents and their sons did not differ in their levels of farm stake, while daughters-in-law had lower farm stake than all other family members. Since these parents and children had chosen to farm together, we might presume that the children had been socialised to be farmers and that they had a long-term commitment to farming. When asked whether they planned to remain in farming, 96% of the adult child generation said yes.
Alternatively, similar levels of stake in the farm between parents and their children may reflect the fact that developmental needs of both parents and sons are being met through farming together. If an aspect of generativity is passing on the material part of the parental heritage, then parents are likely to have a high stake in the farm and in maintaining good relationships with their farming son. It is the farming son who is most likely to assume the business and assure its' continuity. If part of becoming independent is to assume an occupation, a commitment to the farm and family may help a young farm man to achieve that goal.
Table 28 One-way Analysis of Variance of Family Members by Type of Stake
| Type of Stake | F | Significant differences among family members |
| Stake in Farm | 15.09* | * Receiving generation women have significantly lower farm stake than all other family members |
| Mean Levels of Farm Stake | ||
| Retiring generation male | 33.26 |
|
| Retiring generation female | 31.59 |
|
| Receiving generation male | 31.48 |
|
| Receiving generation female | 28.20 |
|
| Stake in Family | 59.31* | * Receiving generation women have significantly lower family stake than all other family members |
| * Receiving generation men have significantly lower family stake than retiring generation women and men | ||
| Mean Levels of Family Stake | ||
| Retiring generation male | 16.78 |
|
| Retiring generation female | 16.36 |
|
| Receiving generation male | 15.17 |
|
| Receiving generation female | 12.84 |
|
| * p = 000 | . |
Both sons and daughters-in-law have lower levels of family stake than retiring generation women and men. The reasons for these lower levels of stake may be different for sons than daughters-in-law. As relative newcomers to the family, daughters~in-1aw do not have a long history of investment and commitment in their new family. Thus their lower stake seems reasonable. We did not ask daughter's-in-law about their commitment to their own families of origin. Research by Marotz-Baden and Cowan (1987) illustrates this sense of daughters-in-law as people who are not yet highly committed to the new family. In a study of farm and ranch families in Montana, they found that when asked who they would turn to for advice or support, the parent who daughters-in-law turned to was their own mother. The majority of daughters-in-law (70%) also said that their mother-in-law sometimes saw things differently than they did. Normally we might interpret this difference in perception as evidence of a younger generation member throwing off the stake of the older generation. In this case, we believe that differences are more likely evidence that younger generation members have not yet developed a stake in the emotional relationship with their 'new' parents.
As well, both sons and daughters-in-law are also in the process of establishing commitment to their own newly formed family. One of our cultural norms is that highest levels of commitment are owed to one's spouse and children. Some of the tensions that are apparent in families during the transition of the business from one generation to the next may arise from the inevitable need for receiving generation members to shift their major family stake to each other. Marotz-Baden and Cowan (1987) say that there is anecdotal evidence that serious problems do exist in some families in which daughters-in-law do not become integrated and that these problems can lead to a break-up of the two-generation family. Despite the fact that retiring women and men have control over a large asset, they still are dependent upon the next generation to continue the family business and the family name. In this respect these older farm couples are similar to other older couples. In both cases, the stake is higher for parents than children.
Lower farm stake of daughter-in-laws may also reflect the relatively short time that they have been part of the business. In fact, daughters-in-law often feel as if they are not part of the business at all. They have the lowest levels of actual involvement in work, management and ownership of all family members. Many do not feel part of the business until all members of the older generation have left and they become the senior partners in the business with their husbands (Keating & Little, 1991).
Developmental stakes are reciprocal investments of two generations (Abramowitz, 1982). The older generation seeks an extension into the future via an affinity with the younger generation, while the younger generation pursues the freedom to stake out its social territory (Bengtson & Kuypers, 1971). For young men and women who are new to the family and the farm, the issue of investment may be very important.
Stakes of family newcomers have not been previously considered. Their lower stakes are not just a matter of differential investment and commitment between generations (Thompson et at. 1985). Adult child generation women had significantly lower farm stake than their same-generation husbands. Rather, these young women's lower stakes seem to support Lund's (1985) argument that commitment to a relationship is strengthened by a person's acts of investing time, effort and resources in that relationship. Daughter-in-law's involvement in the family is relatively new and they have little involvement in the business compared to the rest of the family. This may be because she is not interested in further involvement or because the parents-in-law limit her involvement because of their own high stake in the business. There is anecdotal evidence that in some farm families, daughter-in-law's access to the business is limited by the older generation until they are certain that their son's marriage is strong and that a divorce will not put the farm in jeopardy. Ultimately this approach may mean double jeopardy, since it is investment and commitment that interact to strengthen those relationships and ensure their continuance.
The stakes of these farm families lead us to conclude that generational stakes are more complex than has been previously demonstrated. Clearly family stake is only one type of commitment that might influence the nature of family relationships. As well, developmental explanations for differences in stake need to be reconsidered. Other factors such as need for high interdependence in some families may mean that at times generational differences are less important than other issues such as economic co-operation. More work needs to be done on understanding the place of newcomers in families who have no history of commitment to that family. A fruitful area of further research might be to consider other families with newly married couples, blended families or situations of family caregiving in which a newcomer to the family is expected to care for an elderly member.
Receiving generation men appear to he in the most ambiguous position of all family members. They have a high stake in farming, and in the success of the business, but have lower commitment to their family of origin than their parents have to them. It may be that for some men in the receiving generation, farming with family is the only possible entry into the occupation of farming. Although they are committed to their farm, they might prefer more 'intimacy at a distance' than they are able to maintain when working together and living close to other family members.
4.7 Family Stress and Coping
Because of the stressful nature of farming and the complexity of the exit phase, it was expected that all members of these farm families would have generally high level of stress. Of all members in the family, it was thought that men and women in the receiving generation would be the most stressed since it is the younger generation who is dependent on the transfer of the farm for their future livelihood but has very little control over the timing of the transfer. Stress was measured with a 14-item scale (Cohen, Karmarck and Mermelstein, 1983). The scale is designed to measure people's sense of control over their lives. In this context, stress is seen as feelings of lack of control.
The potential scores on the stress scale ranged from a low of 14 to a high of 70. The mean stress scores for men and women in this study ranged from a low of 27.18 for retiring generation men to a high of 29.53 for receiving generation women. These scores are moderate to low and would suggest that none of these groups are experiencing an excessive amount of stress.
As shown in Table 29, receiving generation women have significantly higher levels of stress than retiring generation men. Since many of the items in the stress scale deal with feelings of having control over one's life, higher stress levels of daughters-in-law may reflect their relatively powerless position in the family. Although retiring generation men might be expected to have high levels of stress because they bear the major responsibility of the farm, their sense of control may keep their stress levels lower.
Overall, members of these families had low levels of stress and did not differ substantially from each other in amount of stress they were experiencing. However, there were differences between family members when it came to the relationship between family and human resources, stake and stress. The research was directed toward exploring the question of whether the financial status of the business or the emotional status of the family were more important in determining levels of stress. In the analysis of this question, it was found that for all family members, the only significant relationship was between the debt/asset ratio of the farm and levels of stress. The stronger the financial situation of the farm, the lower the levels of stress. However, the analysis of these relationships for family members separately revealed different results. For retiring generation women, the same relationship was found. That is, the strongest predictor of stress for them was the debt/asset ratio of the business. In contrast, the strongest predictor for retiring men was family cohesion, a measure of the supportiveness and closeness of the family. There were no significant predictors of stress for receiving generation women and men.
Table 29
One-way Analysis of Variance of Stress Levels of
Women and Men in Retiring and Receiving Generations
Mean Stress Level |
|
| Retiring Generation | |
| Women | 28.46 |
| Men | 27.18 |
| Receiving Generation | |
| Women | 29.861 |
| Men | 29.53 |
| F = 3.06 | |
| P = .02 | . |
Receiving generation women have significantly higher stress levels than retiring generation men
These relationships seems somewhat surprising in light of our assumptions that men have more involvement in financial aspects of the business while women are the 'kin-keepers'. It may be that retiring generation women are in the situation of knowing something about the financial status of the business but having relatively little influence in management decisions which would affect business viability. Thus lack of control over the financial status of the business may be what influences stress levels.
Similarly, retiring generation men have high levels of commitment to family and to family continuity of the farm, yet may have fewer skills in ensuring family harmony than do their wives. They too may be dependent on the emotional viability of the family but feel as if they have little control over closeness of family members. It seems most likely that in families that must work so closely together a strong sense of cohesion is necessary to keep stress levels low. One of the assumptions about rural families is that they are closely knit and interdependent. This finding is supportive of that assumption. However, an alternate interpretation of this finding is that those who have low stress feel closer to other family members, perhaps because of the lack of other pressure in their lives. Regardless of the interpretation, it seems that retiring generation men who see themselves as having strong families, also have lower levels of stress.
The lack of significant predictors of stress for receiving generation women and men is more puzzling. It seems likely that other issues than family and farm resources may be more important in determining their levels of stress. Pressures of off-farm jobs, child care or general concerns about the economy may be the determinants of their stress levels.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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