Measuring farmer time preferences: A systematic literature review for Europe and North America

Abstract

We present the first systematic review of the literature on farmer time preference measurements across Europe and North America. We synthesize methodological developments, summarize the empirical findings, and discuss challenges and potential areas for further research. The average reported discount rate of the farmers in Europe and North America is 23% per annum. Farmer time preferences are, however, highly heterogeneous within and across studies. Moreover, we identify methodological challenges and knowledge gaps to be addressed in future research. We draw conclusions for policymakers and researchers.