The impact of investment support from the Rural Development Programme of the Czech Republic for 2007-2013 on the economic efficiency of farms A comparison of the performance of farms within and outside Less Favoured Areas

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00027251%3A_____%2F17%3AN0000020" target="_blank" >RIV/00027251:_____/17:N0000020 - isvavai.cz</a>

Result on the web

<a href="http://ageconsearch.umn.edu/record/257870" target="_blank" >http://ageconsearch.umn.edu/record/257870</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7896/j.1014" target="_blank" >10.7896/j.1014</a>

Result language

angličtina

Original language name

The impact of investment support from the Rural Development Programme of the Czech Republic for 2007-2013 on the economic efficiency of farms A comparison of the performance of farms within and outside Less Favoured Areas

Original language description

European agriculture is highly mechanised and its development is to a large extent shaped by the constant need for investment. By combining private capital with public funds, the risk burden associated with investment can be shared. The general economic objective of investment support is to improve the efficiency of production factors, such as labour, land and capital. The Rural Development Programme of the Czech Republic for 2007-2013 included a preferential criterion, the objective of which was to give an advantage to farms in Less Favoured Areas (LFA) by facilitating their access to funding for investments. This paper evaluates the investment activities of agricultural holdings located in Czech LFAs in the period 2011-2015, compared to those that are not located in LFAs. Binary logistic regression was employed to identify factors, such as LFA type, farm size, share of other revenues, indebtedness of a farm and stocking density of cattle, that influenced whether a farm was or was not supported with an investment subsidy. We conclude that supported farms in LFAs have higher levels of economic performance and higher labour productivity than unsubsidised farms. It is evident that many farms, especially in mountain areas, are interested in investment activities and are trying to develop their businesses. They have a lower likelihood of business failure than those farms that do not invest.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

40101 - Agriculture

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Studies in Agricultural Economics

ISSN

1418-2106

e-ISSN

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Volume of the periodical

119

Issue of the periodical within the volume

1

Country of publishing house

HU - HUNGARY

Number of pages

7

Pages from-to

11-17

UT code for WoS article

000413417800004

EID of the result in the Scopus database

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