scholarly journals THE LIKELIHOOD OF FARMS BANKRUPTCY: THE CASE OF LITHUANIAN FAMILY FARMS

2018 ◽  
Vol 40 (2) ◽  
pp. 198-205
Author(s):  
Andrej Jedik ◽  
Aldona Stalgienė
Keyword(s):  
Panel Data ◽  
Dairy Farms ◽  
Financial Indicators ◽  
High Likelihood ◽  
Family Farms ◽  
Agriculture Policy ◽  
Scientific Problem ◽  
Farm Accountancy Data Network ◽  
On Farm ◽  
Economic Size

In developing the measures of agriculture policy and purposeful usage of EU funds, also for financial organisations, farmers, advisors and scientists it is important to predict farm bankruptcy. This makes it possible to formulate the scientific problem: what is the likelihood of bankruptcy of different kinds of family farms? The aim of the investigation is to present the likelihood of the Lithuanian family farms bankruptcy based on the economic size and type of farming by analysing financial indicators of farms. Farm-level panel data for the year 2014–2016 from Farm Accountancy Data Network (FADN) was used. The estimated distribution of farm groups based on farm economic size demonstrated that about 40–60% of small farms were in the low likelihood of bankruptcy area. The share of cereals, oilseeds and protein crop farms in the high likelihood of bankruptcy area fluctuated from 13% till 30% during the year 2014–2016. The farm distribution by economic size and type of farming showed that more than 40% of small dairy farms had the high likelihood of bankruptcy in the year 2015–2016, as well as 30% of medium and large cereals, oilseeds and protein crops farms in 2016.

scholarly journals The trends in efficiency of Lithuanian dairy farms: a semiparametric approach

2015 ◽  
Vol 37 (2) ◽  
pp. 167-178 ◽  
Author(s):  
Tomas Baležentis ◽  
Tianxiang Li ◽  
Alvydas Baležentis
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Random Coefficients ◽  
Family Farms ◽  
Frontier Analysis ◽  
Semiparametric Approach ◽  
Farm Accountancy Data Network ◽  
Development Paths

This study aims at analysing the trends in efficiency of Lithuanian dairy farms and thus identifying the prospective development paths. The semiparametric approach based on nonparametric regression and Stochastic Frontier Analysis is applied for the analysis. The research relies on Farm Accountancy Data Network and covers family farms. The period of 2004–2011 is considered. In order to identify the underlying trends in dairy farming, we focus on such features as technical efficiency, partial elasticities, and elasticity of scale. The semiparametric approach yielded rather high efficiencies. Specifically, the average technical efficiency of 89% was observed. A decline in technical efficiency during 2004–2011 is present for both point estimates and associated bounds of the confidence interval. Analysis of the elasticity of scale implies that most of the farms could still increase their scale of operation. The obtained results were confirmed by a parametric random coefficients model.

scholarly journals Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms

2018 ◽  
Vol 10 (8) ◽  
pp. 2942 ◽  
Author(s):  
Alexander Zorn ◽  
Michele Esteves ◽  
Ivo Baur ◽  
Markus Lips
Keyword(s):  
Correlation Analysis ◽  
North American ◽  
Sustainability Assessment ◽  
Dairy Farms ◽  
Financial Ratios ◽  
Economic Sustainability ◽  
Financial Indicators ◽  
Farm Accountancy Data Network ◽  
Positive Correlations ◽  
Sustainability Assessments

In agriculture, a rising number of sustainability assessments are available that also comprise financial ratios. In a literature review of farm management textbooks, taking account of the differences between European and North American practices and considering prevalent sustainability assessment approaches, we identified frequently used financial ratios. Five ratios relate to the indicator profitability and four to the indicator liquidity. Another eight financial indicators refer to the indicators financial efficiency, stability, solvency and repayment capacity. Based on more than 14,000 accountancies of dairy farms from the Swiss Farm Accountancy Data Network (FADN), we carried out a Spearman correlation analysis for normalised and harmonised financial ratios. The correlation analysis revealed mostly positive correlations. To assess the implementation of a quantitative economic sustainability assessment we compare an aggregated indicator compound of all 17 ratios with two selections of financial ratios–first, a compound European and, second, a compound North American economic sustainability indicator. The correlation between the complete and the reduced sets of indicators suggest that both aggregate economic indicators can be reasonably applied to estimate the economic sustainability for Swiss dairy farms.

scholarly journals Off-farm role in stabilizing disposable farm income: A Lithuanian case study

2020 ◽  
Vol 66 (No. 7) ◽  
pp. 325-334
Author(s):  
Vida Dabkienė
Keyword(s):  
Reference Level ◽  
Farm Income ◽  
Family Farms ◽  
Income Volatility ◽  
Income Source ◽  
Policy Makers ◽  
Family Farmers ◽  
Farm Accountancy Data Network ◽  
Part Time ◽  
On Farm

The paper aims to investigate family farm income volatility by decomposing disposable farm income (DFI) into the on-farm income, income from production support and off-farm income (OFI) over time. The research is focused on the OFI, assessing its role in achieving DFI above reference level based on the average net earnings. Three main indicators consistent with Farm Accountancy Data Network (FADN) were indicated. The research results revealed the significance of OFI. In 2017, 76% of the family farms were engaged in off-farm activities indicating, on one hand that such approaches as part-time farming or lifestyle farming are becoming more attractive to Lithuanian family farmers. On the other hand, research disclosed that farms mostly engaged in off-farm activities yield the lowest on-farm income levels. Moreover, the OFI tends to produce a stabilizing effect on quite a number of farmers as the majority of family farms cannot rely upon the on-farm income as their only income source. Thus, the agricultural and rural development policy makers, aimed at supporting viable farm income and strengthening farm resilience, have to answer the part-time farmers’ needs.

scholarly journals Economic Situation of Dairy Farms in Identified Clusters of European Union Countries

Agriculture ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 92 ◽  
Author(s):  
Walenty Poczta ◽  
Joanna Średzińska ◽  
Maciej Chenczke
Keyword(s):  
Euclidean Distance ◽  
Agricultural Sector ◽  
Dairy Farms ◽  
Economic Situation ◽  
Financial Indicators ◽  
Production Potential ◽  
European Union Countries ◽  
Different Types ◽  
Farm Accountancy Data Network ◽  
The Eu

The economic situation of EU dairy farms is unstable and differs strongly between member countries. Most studies addressing the EU’s agricultural sector focus on selected countries or selected groups of operators. Conversely, this paper seeks to determine the economic situation of dairy farms in EU countries grouped into types according to their production potential. The analysis relied on data collected and processed in the FADN (Farm Accountancy Data Network). The farms were classified based on a hierarchical clustering routine. The agglomerative technique was used. Distances between clusters were calculated using the Ward’s method. In turn, the distance between countries was calculated as the Euclidean distance. This study enabled the identification of five different types of dairy farms in the EU. On an EU-wide basis, medium and large-sized highly specialized intensive farms play a key role in milk production. Despite their profitability being somehow restricted, they report high levels of labor productivity thanks to an advantageous production potential. In turn, an insufficient potential is among the main restrictions faced by other dairy farms in the EU; their advantageous financial indicators often fail to provide satisfactory levels of income which could drive investment and consumption opportunities.

scholarly journals Economic Resilience of EU Dairy Farms: An Evaluation of Economic Viability

Agriculture ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 510
Author(s):  
Artur Wilczyński ◽  
Ewa Kołoszycz
Keyword(s):  
Dairy Farms ◽  
Research Area ◽  
Economic Viability ◽  
Farm Income ◽  
The European Union ◽  
Economic Resilience ◽  
Production Scale ◽  
Unpaid Labor ◽  
On Farm ◽  
Economic Size

The economic viability of dairy farms is a measure of their ability to survive and grow. Its measurement is particularly important in periods of changes taking place in the environment of these entities. The last decade of the European dairy market was characterized by significant changes in regulations, which resulted in fluctuations in farm gate milk prices and, consequently, impacts on farm income. The main objective of the research was to assess the economic viability of dairy farms located in the European Union. The research area covered the countries that have the most raw cows’ milk delivered to dairies in the EU, and FADN data from 2009 to 2018. A comparative analysis was carried out on the level of temporal viability and permanent viability of farms classified by economic size. The research results showed that better temporal viability was achieved by farms with a larger production scale. On the other hand, the permanent economic viability was lower on farms belonging to a higher economic size class. Most of the analyzed groups of farms were in the survival phase. This means that dairy farms struggled to meet the costs of unpaid labor. Including direct payments in the calculation resulted in an improvement in temporal viability only in farms with the lowest economic size classes.

scholarly journals Role of Debt and the Ability to Create Equity in a Family Farm

2013 ◽  
Vol 4 (2) ◽  
pp. 3-11
Author(s):  
Joanna Bereżnicka
Keyword(s):  
Regression Models ◽  
Positive Impact ◽  
Positive Influence ◽  
Exit Point ◽  
Family Farms ◽  
Farm Accountancy Data Network ◽  
Large Farms ◽  
Economic Size

Abstract The aim of the work was to assess the dependence between debt level and the creation of equity for the farmer. In this paper were verified the opinions found in literature concerning the positive impact of debt-to-equity farmer. The study was carried out on family farms belonging to the “large” farms according to the classification of the Farm Accountancy Data Network (FADN PL) based on economic size ESU (that is about 45 ESU). The farms were divided into two different groups on account of level their debt. To analyze data were used the descriptive statistics method and regression models. Family farms with a larger level of debt showed better results and the regression models confirmed the positive influence of debt on the ability to create value for farms. This model is consistent when farmers benefit from preferential credit. This form of debt was dominated in the studied farms. The results of the research may constitute an exit point for conducting analysis for farmers considering to take out a loan or credit.

Retrospective analysis of the resilience of Russian regions as socio-economic systems

2019 ◽  
pp. 46-64 ◽  
Author(s):  
Vladimir V. Klimanov ◽  
Sofiya М. Kazakova ◽  
Anna A. Mikhaylova
Keyword(s):  
Panel Data ◽  
Economic Systems ◽  
Financial Indicators ◽  
Russian Regions ◽  
Integral Index ◽  
Negative Effects ◽  
Economic Resilience ◽  
Correlation Dependence ◽  
The Impact ◽  
The Relationship

The article examines the impact of various socio-economic and financial indicators on the resilience of Russian regions. For each region, the integral index of resilience is calculated, and its correlation dependence with the selected indicators is revealed. The study confirms the relationship between fiscal resilience and socio-economic resilience of the regions. The analysis of panel data for 75 regions from 2007 to 2016 shows that there are significant differences in the dynamics of indicators in different periods. In particular, the degree of exposure to the negative effects of the crises of 2008—2009 and 2014—2015 in non-resilient regions is higher than in resilient ones.

Closing sustainability gaps on family farms: Combining on-farm co-innovation and model-based explorations

2021 ◽  
Vol 188 ◽  
pp. 103017
Author(s):  
P. Colnago ◽  
W.A.H. Rossing ◽  
S. Dogliotti
Keyword(s):  
Family Farms ◽  
Model Based ◽  
On Farm

scholarly journals Análisis de la calidad de la leche en un modelo microeconómico multi-output: El papel de la genética

2011 ◽  
Vol 5 (10) ◽  
pp. 3 ◽  
Author(s):  
Antonio Álvarez ◽  
Carlos Arias ◽  
David Roibás
Keyword(s):  
Panel Data ◽  
Milk Production ◽  
Distance Function ◽  
Dairy Farms ◽  
Milk Quality ◽  
Production Model ◽  
Genetic Traits

In this paper we analyze the influence of genetics on milk quality. For that purpose, we use a multi-output production model in which milk quality is included as an additional output in milk production. A distance function is used to estimate empirically the contribution of genetics to milk quality. For that purpose, we use a panel data of 96 dairy farms in Asturias. This dataset contains indexes measuring the genetic traits of the herd.

scholarly journals THE DYNAMICS OF HORTICULTURAL FARM NUMBERS IN DIFFERENT ECONOMIC SIZE CLASSES AND CHANGES IN THEIR INCOME IN 2007-2017

2020 ◽  
Vol XXII (3) ◽  
pp. 31-41
Author(s):  
Maryla Bieniek-Majka ◽  
Marta Guth
Keyword(s):  
European Union ◽  
Agricultural Policy ◽  
The European Union ◽  
Eu Countries ◽  
Average Change ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
Large Farms ◽  
Economic Size ◽  
The Eu

The aim of this study is to determine changes in the structure of horticultural farms in EU countries in the years 2007-2017 and their incomes and determine the share of subsidies of the Common Agricultural Policy in the income of horticultural farms in studied groups. Horticultural farms from the European Union Farm Accountancy Data Network (EUFADN) of all EU countries were surveyed. A dynamic analysis of the structure of farm numbers in particular groups of economic size (ES6) was carried out, and then the average change in income and the share of subsidies in income within these groups in 2007 and 2017 were presented. As a result of the conducted research, changes in the number of horticultural farms in various groups of economic size were taken into account and the assumptions concerning the decreasing scale of fragmentation of horticultural farms were confirmed by a decrease in the number of the economically weakest groups and an increase in the number of medium and large farms. It was noted that, in the studied groups, the strongest income growths concerned farms with medium or high economic strength, which may mean that income had a significant impact on the process. Moreover, it results from the conducted research that existing institutional solutions additionally supported the tendency to reduce the scale of fragmentation of horticultural farms in the EU-12 due to the fact that the shares of subsidies were higher in groups with higher economic strength.

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