scholarly journals Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints

2020 ◽  
Vol 66 (No. 5) ◽  
pp. 193-202
Author(s):  
Tomas Hlavsa ◽  
Jindrich Spicka ◽  
Marie Stolbova ◽  
Zuzana Hlouskova
Keyword(s):  
Agricultural Policy ◽  
Rural Areas ◽  
Value Added ◽  
Economic Viability ◽  
The Czech Republic ◽  
Field Crops ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
Net Value Added ◽  
Grazing Livestock

The redesign of the Common Agricultural Policy (CAP) allows for more room to address issues related to stabilising farmers’ income and developing their viability in areas facing natural constraints (ANC). Maintaining income levels, developing farm economies in rural areas, and encouraging competitive agricultural practises are the challenges facing the new CAP. ANCs in the Czech Republic are characterised by a lower level of income compared to areas outside ANCs and their generally prevailing specialisation in livestock production, which has been facing a relatively turbulent development in the last decade. The main aim of this paper is to evaluate the economic viability with regard to the level of natural disadvantage and with regard to farm specialisation. The database of Farm Accountancy Data Network (FADN) was used for assessment; the authors built the Farm Economic Viability indicator, which is based on modified Farm Net Value Added. The differences between the farm groups were tested through analysis of variance. Significantly lower viability was found in ANCs compared to farms outside ANCs. Field crops achieved significantly higher levels, both in and outside ANCs. The most threatened group of farms are grazing livestock in ANCs.

scholarly journals Analysis of Economic Efficiency in Some Irish Farms Using the DEA Approach

2018 ◽  
Vol 6 (2) ◽  
pp. 156
Author(s):  
Nicola Galluzzo
Keyword(s):  
Economic Efficiency ◽  
Agricultural Policy ◽  
Dairy Farms ◽  
Data Envelopment ◽  
Field Crops ◽  
Research Outcomes ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
Grazing Livestock

Irish farms are predominately and highly specialized in crops as cereals, protein crops and in dairy productions. The aim of this research was to estimate the economic efficiency in Irish farms part of the Farm Accountancy Data Network (FADN) dataset stratified in function of their own typology of productive specialization since 2004 to 2015 by a quantitative approach such as the Data Envelopment Analysis (DEA). Positive has been the role of inputs as financial subsidies allocated by the Common Agricultural Policy, the first and second pillar, in increasing the economic efficiency of Irish farms. Field crops farms have not had the best results in terms of the economic efficiency even if over the time, in particular during the economic crises 2008-2009, findings have not been stable with significant fluctuations and a sharply decrease of efficiency as a consequence of economic turbulences. Focusing the attention on the research outcomes in all years of investigation comparing also the different typology of farming, mixed farms and farms with animals, such as specialist cattle, sheep, goats and other grazing livestock, have had the highest levels of economic efficiency equal to 100%; by contrast Irish dairy farms have had the modest levels of economic efficiency close to 77%.

scholarly journals The impact of LFA payments on FADN farms in the Czech Republic

2008 ◽  
Vol 54 (No. 10) ◽  
pp. 489-497 ◽  
Author(s):  
M. Štolbová ◽  
T. Hlavsa
Keyword(s):  
Czech Republic ◽  
Current System ◽  
Value Added ◽  
Farm Income ◽  
Family Farm ◽  
The Czech Republic ◽  
Data Network ◽  
Farm Accountancy Data Network ◽  
The Impact ◽  
Net Value Added

This paper analyses the impact of the LFA payments on farms economic results on the basis of the Farm Accountancy Data Network in the Czech Republic. Firstly, the approaches are compared to the structure of farms based on the LFA type. Secondly, the share of the LFA payments on economic results of farms is evaluated. The evaluation considers the LFA type, share of grassland, size of the eligible area of farms. Basic economic indicators are being monitored, such as Gross Farm Income, Farm Net Value Added, Family Farm Income, current subsidies, of which in particular the LFA payments. The share of the LFA payments in economic results of agricultural holdings is compared. As a result of the analysis, the winners and losers of the current system were defined.

scholarly journals Economic outcomes in relation to farmers’ age in the Czech Republic

2020 ◽  
Vol 66 (No. 4) ◽  
pp. 149-159
Author(s):  
Zuzana Hlouskova ◽  
Marie Prasilova
Keyword(s):  
Czech Republic ◽  
Crop Production ◽  
Age Groups ◽  
Value Added ◽  
Farm Size ◽  
The Czech Republic ◽  
Significant Difference ◽  
Farm Accountancy Data Network ◽  
The Relationship ◽  
Net Value Added

The current paper aims to assess farming enterprise outcomes in the Czech Republic from a socio-economic perspective. The relationship between the age of a farms’ managers and its economic results has been analysed for 1 351 farms using the FADN (Farm Accountancy Data Network) database in order to determine whether farms’ economic results differ on the basis of the age of their managers. Our analysis confirms that there is indeed a correlation between manager age and a farming enterprise’s economic results. The results have been analysed in detail according to the age groups of managers and farm owners, farm specialization, and farm size. The farm net value added per annual work unit reached the best values in businesses managed by young farmers in crop production (EUR 34 445) and young farmers in large enterprises (EUR 43 400). The oldest farmers, specializing in milk production, had the highest level of indebtedness (0.39). The data reveal that the age of farmers is inversely proportional to the level of indebtedness, with level of debt decreasing with increasing farmer age. A Mann-Whitney U test (with Bonferroni correction) confirms a statistically significant difference between young farmers and the remaining three age groups in the ratio of production to cost.

scholarly journals Approaches to estimation the farm-level economic viability and sustainability in agriculture: A literature review

2019 ◽  
Vol 65 (No. 6) ◽  
pp. 289-297 ◽  
Author(s):  
Jindřich Spicka ◽  
Tomas Hlavsa ◽  
Katerina Soukupova ◽  
Marie Stolbova
Keyword(s):  
Value Added ◽  
Economic Viability ◽  
Farm Income ◽  
Economic Sustainability ◽  
Family Farms ◽  
Return On Assets ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
High Share ◽  
Legal Entities

Estimation of farm economic sustainability and viability became more topical when redesigning the Common Agricultural Policy which should stabilise farm income and make agribusiness more viable and sustainable (typically in Czech areas facing natural constraints). The key question is how to calculate the income of farms or farm households not only to survive but also to grow sustainably. The article summarises and compares knowledge from 51 studies to provide a comprehensive discussion on different ways how to measure economic viability and sustainability to set income support for farms in the areas with natural constraints optimally. The authors found family farms and off-farm income as important limitations of FADN database (Farm Accountancy Data Network) for evaluation of the economic sustainability of farm household. Moreover, some financial ratios (Return on Assets – ROA and assets turnover) are not suitable viability indicators for farms with a high share of hired land (typically large legal entities). Joining family farms and legal entities, the authors recommend using modified Farm Net Value Added (MFNVA) allowing for opportunity costs of own land and non-land assets. The average wage in the economy or region is a better proxy for opportunity labour costs of unpaid work rather than average agricultural wage.<br />

scholarly journals AGRICULTURE OF THE CZECH REPUBLIC IN THE 21ST CENTURY: FROM PRODUCTIVISM TO POST-PRODUCTIVISM

2013 ◽  
Vol 32 (4) ◽  
pp. 7-14 ◽  
Author(s):  
Antonín Věžník ◽  
Michael Král ◽  
Hana Svobodová
Keyword(s):  
Czech Republic ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Arable Land ◽  
Farm Animals ◽  
Regional Differentiation ◽  
The Czech Republic ◽  
The Common ◽  
The Eu

Abstract During last two decades Czech agriculture has gone through significant changes: the transition of agriculture in the 1990s and the entrance of the Czech Republic into the EU and its commitment to the Common Agricultural Policy (CAP). Both of these changes contributed to the structural and regional differentiation of Czech agriculture and exposed it to competition with the whole of Europe. Furthermore, CAP exposed Czech agriculture to uneven conditions for farmers within the EU. The most significant results of these changes have been a decrease in the agricultural sector output, a reduction in farm animals bred, and shrinkage of arable land. On the other hand, many non-productive and non-agricultural activities in the rural areas are subsidised, which offers farmers new possibilities of development. The aim of this paper is to analyse the structural and spatial change in Czech agriculture between 2000 and 2010 on the basis of Agrocenzus data supplemented by opinions of farmers gained in a series of interviews.

scholarly journals Analysis of the development of the economic account for agriculture of the Czech Republic

2012 ◽  
Vol 52 (No. 5) ◽  
pp. 205-208
Author(s):  
J. Klíma ◽  
M. Palát Sn
Keyword(s):  
Czech Republic ◽  
Statistical Analysis ◽  
Value Added ◽  
Plant Production ◽  
Reference Period ◽  
The Czech Republic ◽  
Agricultural Industry ◽  
Increasing Trend ◽  
Production Output ◽  
Net Value Added

The paper is focused on assessing the development of the economic account for agriculture of the Czech Republic in the selected reference period 1998&ndash;2003. There were evaluated effects of the particular types of the economic accounts. Methods of regression and correlation analysis and development trends were used for the mathematical-statistical analysis. The plant production output similarly as the output of agricultural industry show an increasing tendency since the period under investigation reaching a peak about 2001 and in next years decreasing in difference to the gross value added at basic prices and the net value added at basic prices which shows an increasing trend throughout the period. Both animal output and the agricultural services output show a decreasing trend reaching a minimum about 2002.&nbsp;

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.

FEATURES OF EU AGRICULTURAL POLICY: OPPORTUNITIES FOR UKRAINE

2020 ◽  
pp. 52-56
Author(s):  
Oleksii Hryhorovych Korytnyi ◽  
Keyword(s):  
Sustainable Development ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Market Competition ◽  
Practical Experience ◽  
Organic Production ◽  
Eu Countries ◽  
The Common ◽  
The Eu

The need for constant monitoring of existing practices to improve the efficiency of the agricultural sector and identify important guidelines for further development of this area.Using modern experience of EU countries to increase the efficiency of the national agricultural sector.Practical and theoretical issues of development of the agricultural sector and the use of existing practical experience in this field were considered by O. Borodin, O. Bublienko, V. Granovska, N. Karaseva, I. Klymenko, R. Kosodiy, M. Skoryk and others.Active development of economic processes in the agricultural sector requires current research on the existing practical experience of developed countries.Analysis of practical experience in ensuring the effective functioning of the agricultural sector of the EU.An effective direction of the transition to sustainable development of rural areas is organic production (regulatory principles are reflected in the Common Agricultural Policy of the EU). The institutional norms of the CAP EU act as a guarantor of positive transformations and a "substitute" for the interests of producers in conditions of market competition. In practice, the Council and the EU Commission are responsible for implementing the common policy. European policy for the development of the agricultural sector is funded by the European Agrarian Fund for Rural Development. EU countries use various mechanisms (subsidies, grants, state loan guarantees, etc.) for the development of the agricultural sector. The best results in the direction of sustainable development of the agricultural sector were achieved by countries that took radical steps quickly, decisively, comprehensively. The experience of the EU countries shows that it is also justified to limit government intervention in this sector, or to implement it through market-type mechanisms

scholarly journals Bioeconomy in the National Forest Strategy: A Comparison Study in Germany and the Czech Republic

Forests ◽  
2020 ◽  
Vol 11 (6) ◽  
pp. 608 ◽  
Author(s):  
Ratna Chrismiari Purwestri ◽  
Miroslav Hájek ◽  
Miroslava Šodková ◽  
Mathy Sane ◽  
Jan Kašpar
Keyword(s):  
Czech Republic ◽  
Rural Areas ◽  
Forest Policy ◽  
Forest Biomass ◽  
Value Added ◽  
Adoption Process ◽  
National Forest ◽  
Comparison Study ◽  
The Czech Republic ◽  
European Forest

Background and Objectives: Forest-based bioeconomies have been adopted as the national forest strategies in many European countries. However, in the Czech Republic, the bioeconomy has not been officially included in national policies. The main objective of the paper was to review the current forest policy in the Czech Republic in meeting the purposes of the European forest-based bioeconomy. To better understand the opportunities and shortcomings of the forest strategy and the implementation of a forest-based bioeconomy in the country, a comparison study in the Czech Republic and Germany was also carried out. Methods: A review of the forest strategies was done based on the following research questions: (1) How are the bioeconomy principles and priorities present in the Czech National Forest Programme (NFP) as reflected in the EU Forest Strategy, and how does the Czech forest strategy compare to that in Germany? (2) What is the situation concerning the national wood production and consumption to understand the opportunities and challenges of the bioeconomy implementation in the studied countries? Results: The Czech NFP was approved following the pan-European process for the protection of forests in Europe; therefore, it does not directly reflect the 2012 bioeconomy principles, although most of these approaches have been included in this strategy. Different national measures in two studied countries were revealed to achieve the objectives of the forest bioeconomy. The primary contribution from the Czech forestry to the bioeconomy is sustainable forest-based products. A forest bioeconomy is also targeted at mitigating climate change by providing forest biomass for bioenergy. Conclusions: The Czech Republic is in the midst of the adoption process of the bioeconomy strategy. The main challenges faced by the forest-based sector in the country is to fulfil the demand for sustainable forest biomass and high value-added products. Multisectoral collaboration, business diversification, and education for public consumers are needed to increase the growth and job opportunities of the bioeconomy sector in rural areas.

scholarly journals Sustainable Economic Development of Farms in Central and Eastern European Countries Driven by Pro-investment Mechanisms of the Common Agricultural Policy

Agriculture ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 93 ◽  
Author(s):  
Wawrzyniec Czubak ◽  
Krzysztof Piotr Pawłowski
Keyword(s):  
Labor Productivity ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
European Countries ◽  
Control Group ◽  
Eastern European ◽  
Structural Funds ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
Eastern European Countries

Improvements in sustainability at the farm level are the basic driver of agricultural sustainability at the macro level. This is a challenge that can only be met by farms which efficiently process inputs into products. The increase in the efficiency of European farms is largely conditioned by measures taken under the Common Agricultural Policy (CAP), especially its second pillar. The purpose of this study was to determine the net effect of pro-investment instruments available under the second pillar of the CAP in selected Central and Eastern European countries. Unpublished Farm Accountancy Data Network (FADN) microdata provided by the European Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI) were used as the source material. The study presented in this paper is unique in that the research tasks are based on unpublished microdata of selected Central and Eastern European farms. The study relied on the Propensity Score Matching approach; the net effect of pro-investment mechanisms was analyzed using productivity and profitability indicators calculated for farms which have been keeping FADN records for a continuous period of no less than 6 years. As shown by the study, structural funds available under the CAP clearly provided an investment incentive for farms. The conclusion from the assessment of changes in the availability of productive inputs is that the beneficiaries reported a greater increase in fixed asset value and in farm area in all countries except for the Czech Republic and Slovakia. The comparative analysis of countries covered by this study failed to clearly confirm that labor is substituted with capital to a significant extent. Every country covered by this study experienced a noticeable negative net effect on both the productivity and profitability of capital. When considering all the countries, the beneficiary group has no clear advantage over the control group in terms of changes in land and labor productivity and profitability (a statistically significant positive effect was recorded for land productivity and profitability in Slovenia). As regards labor, a statistically significant positive net effect (a difference in growth rate between the beneficiary group and the control group) was recorded in Slovenia, but also in Poland, where beneficiary farms reported a greater increment in labor profitability and reduced the negative difference in labor productivity.

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