This study is the first to evaluate the setting up aid in the Rural Development Programme. For
Sweden we investigate if the aid, firstly, speeds up the transition process to farm management
and, secondly, affects income from farming and survival of the farm. The approach builds on a
regression discontinuity design and explores an age 40-eligibility requirement in the setting up
We find that the setting up aid has a impact on the transition to farm management, as well
as it increases income from farming and farm survival. Consequently, the aid is likely to fulfil
its aim of attracting young people into farming.