scholarly journals The Relationship of Agricultural and Non-Agricultural Income and Its Variability in Regard to Farms in the European Union Countries

Agriculture ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 196
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
Anna Matuszczak ◽  
Ryszard Kata ◽  
Piotr Kułyk

Many authors emphasize that reducing the income deprivation of the agricultural sector in relation to the non-agricultural sectors is a prerequisite to the growth of sustainability of agriculture. Thus, this raises the question: despite the impact of the Common Agricultural Policy (CAP) on the value of agricultural income in EU countries, is there still income deprivation for agriculture in relation to non-agricultural sectors? If so, is its depth comparable among farms with a different scale of production from the same EU country or among farms with the same scale of production from different countries? The answers to these questions constitute the added value of the article. The aim of the paper is to compare the ratio of agricultural income to non-agricultural income in regard to family farms in EU countries. Results show that the CAP solutions do limit the agricultural income disparities but that there are significant differences in the income deprivation of farms with different production values in the same country. These differences also apply to farms with a similar production volume in different countries. This publication includes critical analysis of literature, spatial-analysis and panel regression. The time scale of the research is 2004–2017, the spatial scope is individual EU countries and the subjective scope is representative EU Farm Accountancy Data Network (FADN) farms.

2020 ◽  
Vol 63 (3) ◽  
pp. 195-209
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
◽  
Agnieszka Sapa ◽  

The aim of paper is to answer to the question whether the EU’s Common Agricultural Policy reduces the differences in the average agricultural income between the EU-15 countries and those that joined the EU in 2004. The hypothesis was assumed that the CAP subsidies reduce the differences in agricultural income between these two groups of countries. Spreads between average income of farmers from the old and new members were calculated. The analysis is carried out in two variants. In the first one, the agricultural income does not include the CAP support, in the second one the agricultural income covers all CAP subsidies. The spatial scope of research involves two groups of countries: EU-15 (Belgium, the Netherlands, Luxembourg, France, Germany, Italy, the United Kingdom, Denmark, Ireland, Greece, Spain, Portugal, Finland, Austria and Sweden) and EU-8 (the Czech Republic, Poland, Slovakia, Lithuania, Latvia, Estonia, Hungary and Slovenia). The subjective scope of the survey covers representative farms from the EU countries (representing 4,045,300–5,295,930 farms in the EU countries, depending on the investigated year). The time frame of the analyses concerns the years 2005–2017. The data from the Farm Accountancy Data Network (FADN) are used. The study positively verifies the hypothesis that: subsidies from the CAP cause a decrease in the differences in average agricultural income between the EU-15 and the EU-8 countries. This contributes to an increase in economic sustainability and in the territorial cohesion of agriculture for the EU countries.


2020 ◽  
Vol 12 (3) ◽  
pp. 888 ◽  
Author(s):  
Michał A. Jerzak ◽  
Magdalena Śmiglak-Krajewska

In recent years, food security—defined as the economic and physical availability of food—has become a topic of particular importance to European countries, including Poland. In the European Union, the production volume of protein raw materials has failed to meet the demand for many years now. The deficiency reaches 60–80% of protein raw material and is covered by imported goods, primarily including soya bean meal sourced from the Americas. This type of dependency could pose a threat to food security in Poland and in many other EU countries. The main purpose of this paper was to identify the condition of the market for vegetable protein feed around the world, in the EU and in Poland and to use the example of Poland to indicate the economic and environmental consequences of globalization processes affecting the feed industry. An attempt was also made to determine the impact of these processes on sustainable development and on self-sufficiency in vegetable proteins. As a source of information, this study relied on numeric data from databases delivered by the FAO, FEFAC, Alltech, Oil World, Central Statistical Office and the Institute of Agricultural and Food Economics—the National Research Institute. The study period was 2010–2018. The methodology proposed by Chechelski was used to assess the globalization process in the Polish feed industry. Primary data used to meet the objective defined above were retrieved from empirical studies carried out with 180 selected farms from all over the country and 74 feed factories. One of the conclusions is that the globalization process in the Polish market for vegetable protein feed resulted in changing the feed production technology by marginalizing the use of native sources of plant protein. As the farmers lack interest in cultivating these plants, they cannot reap the natural benefits derived from them. From the perspective of environmental impacts, this perturbs the sustainable agriculture concept.


2016 ◽  
Vol 10 (1) ◽  
pp. 53-58
Author(s):  
Vesna Očić ◽  
Branka Šakić Bobić ◽  
Mario Njavro

The objective of the paper is to provide an overview of the situation and performance of Croatian farms. Croatian farmers rarely keep business books and therefore farm level business data are deficient. Croatian accession to the European Union in 2013 brought numerous innovations to agricultural sector. One is introduction of Farm Accountancy Data Network (FADN) which aims to determine the impact of the Common Agricultural Policy on national agriculture of EU member states. The sample of Croatian FADN comprises 1,250 commercial farms. The paper brings results of agricultural sector financial analysis for the period 2011-2013. Total farm output decreased, but since the stronger decrease trend occurred in total inputs, this led to positive trend of gross and net farm income in the year 2013. Positive results are also shown at efficiency and productivity of Croatian farms. In the years 2011 and 2012 farms operated below the efficiency level while in 2013 efficiency increased above the efficiency level. In the observed period there was a 70% increase in productivity. The analysis shows that the most efficient farms are those in vegetables and flowers type. It also has the highest debt ratio due to their capital intensiveness. The vegetable and floriculture farms have the largest gross farm income in all three analysed years, but with a large drop in 2013, while the farms in type pigs and poultry have largest increase of gross farm income in last observed year.


2021 ◽  
Vol 92 ◽  
pp. 09008
Author(s):  
Yaroslava Kostiuk ◽  
Eva Kalinová ◽  
Jiří Kučera

Research Background: The paper focuses on the specification of categories of the globalization and internationalization process in terms of origin, development, definition and content. Using European Commission statistics for the period 2013-2017, the EU28 countries are divided into countries that started the EU (Germany, France, Italy, Belgium, the Netherlands, Luxembourg) and countries that joined the EU before 2000 (Denmark, Norway, Finland, Portugal, Austria, Greece, Spain, Sweden, Great Britain), and other countries of the so-called former Eastern bloc (Czech Republic, Slovakia, Hungary, Poland). For such defined EU countries, a different level of involvement in the globalizing common economy of the European Union as well as a different level of involvement in foreign markets, depending on the level of national economies, can be expected. Purpose of the Article: A test set of 338,788 companies from across the EU was used to analyse value added associated with each indicator (value added at factor cost, gross (average) value added per person employed, number of workers, enterprise size classes and selected industries, namely manufacturing, construction, engineering, transportation and logistics). The membership of the countries in the European Monetary Union was also taken into account. Methods: Mathematical and statistical methods of correlation analysis and paired T-test were used for value added analysis. Findings & Value Added: The outputs of the analysis indicated a high level of statistical conclusive evidence in terms of the impact of value added on each enterprise size class across the sectors concerned as well as on the structure of production and the number of active workers.


2021 ◽  
Vol 13 (9) ◽  
pp. 4772
Author(s):  
Hanna Klikocka ◽  
Aneta Zakrzewska ◽  
Piotr Chojnacki

The article describes and sets the definition of different farm models under the categories of being family, small, and large-scale commercial farms. The distinction was based on the structure of the workforce and the relationship between agricultural income and the minimum wage. Family farms were dominated by the farming family providing the labour and their income per capita exceeded the net minimum wage in the country. The larger commercial farms feature a predominance of hired labour. Based on surveys, it was found that in 2016 in the EU-28 there were 10,467,000 farms (EU-13—57.3%, EU-15—42.7%). They carried out agricultural activities on an area of 173,338,000 ha (EU-13—28.5%, EU-15—71.5%). Countries of the EU-28 generated a standard output (SO) amounting to EUR 364,118,827,100 (EU-13—17.2% and EU-15—82.8%). After the delimitation, it was shown that small farming (70.8%) was the predominant form of management in the European Union (EU-13—88.2% and EU-15—79.8%) compared to family farming (18.4%) (EU-13—10.5% and EU-15—29%). In most EU countries the largest share of land resources pertains to small farms (35.6%) and family farms (38.6%) (UAA—utilised agricultural area of farms).


Author(s):  
Maryla Bieniek-Majka ◽  
Marta Guth

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.


Author(s):  
Krzysztof Pawłowski ◽  
Wawrzyniec Czubak

The 2nd pillar of the Common Agricultural Policy plays a very significant role in shaping the image of a modern, European village. It’s impact on the development of agriculture and rural areas seems to be obvious, for example because of the place it occupies in the structure of the European Union budget. However, it’s very important to precisely determine the effects of its implementation. Therefore, in this article the main goal was to show the reasons for diversifying the implementation of the Rural Development Program 2007–2013 in the countries of Central and Eastern Europe. Against the background of differences in the economic and production situation of the agricultural sector, the design of the Programs was evaluated and it’s impact on changes in the agricultural sectors of these countries was compared. To show the impact of the funds of the second pillar of the CAP, the time range presenting changes in agriculture covers the years before and after integration. Based on them, a comparison of the implemented activities and the structure of their financing has been made.


2018 ◽  
Vol 18(33) (3) ◽  
pp. 342-352
Author(s):  
Jadwiga Zaród

The level of agricultural development in the EU countries is varies significantly. The knowledge of factors directly affecting changes in agriculture can contribute to reducing disparities between countries. The purpose of this study is to indicate the main factors which determine agricultural development in the European Union. To implement this task, the discriminant analysis was used. The research material were data from the GUS and EUROSTAT regarding agriculture in EU countries. The research shows that the development of agriculture in the EU is determined in particular by factors such as the share of sowing of cereals in the total area of arable land, consumption expenditure in households, labor productivity and agricultural income. In addition, the discriminatory analysis allowed assigning particular countries to groups with different levels of agricultural development.


2022 ◽  
pp. 155-184
Author(s):  
Vítor João Pereira Domingues Martinho

A deeper assessment of the main determinants associated with the use of fertilisers, for example, in the European Union farms may bring relevant insights about the respective frameworks and support to find more sustainable solutions. In this context, the main objective of this study is to identify factors that influence the use of fertilisers in the agricultural sector of the European Union regions. To achieve this objective, statistical information, at farm level, from the European Farm Accountancy Data Network was considered. These data were first analysed through exploratory approaches and after assessed with classification and regression tree methodologies. The results obtained provide interesting insights to promote a more sustainable development in the European farms, namely supporting the policymakers to design more adjusted measures and instruments. In addition, the fertilisers costs on the European Union farms are mainly explained by crop output, costs with inputs, current subsidies, utilised agricultural area, and gross investment.


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