Are the Agricultural Subsidies Based on the Farm Size Justified? Empirical Evidence from the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F22%3A43922045" target="_blank" >RIV/62156489:43310/22:43922045 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.3390/agriculture12101574" target="_blank" >https://doi.org/10.3390/agriculture12101574</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/agriculture12101574" target="_blank" >10.3390/agriculture12101574</a>

Result language

angličtina

Original language name

Are the Agricultural Subsidies Based on the Farm Size Justified? Empirical Evidence from the Czech Republic

Original language description

The paper aims to explore the relationship between size, production orientation, and performance in the Czech agriculture and to answer the research question as to what extent a farm size and a product orientation of farm do matter in relation to its productivity and profitability. We use data from FADN CZ database (Farm Accountancy Data Network-Czech Republic) of conventional farms oriented on fieldcrops production, milk production, other grazing livestock and mixed production, and we cover the period from 2015-2020. Pursuing an econometric approach (ANOVA and multivariate regression analysis), we test productivity and profitability differentiation among the different-sized and different production orientation companies. Finally, subsidies and their effects on different groups of companies are assessed. The findings from testing our empirical model indicate that very large farms have statistically significantly higher total factor productivity than large farms, which perform better than medium and small farms. Average productivity of large-size farms compared to small and medium farms is 1.4 times higher in terms of total factor productivity, more than two times higher in terms of agricultural land productivity, and 3.2 times higher in terms of labour productivity. The findings show that farms with field production statistically significantly outperform farms with orientation on other grazing livestock and mixed production. Different levels of productivity are translated into differentiation in the profitability. The highest profitability ratios are achieved by large farms followed by very large, medium, and small ones. The assessment of ratio of subsidies to agricultural production shows that small farms received 2.3 times higher agricultural subsidies per unit of agricultural production compared to very large farms.

Czech name

—

Czech description

—

Type

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

CEP classification

—

OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

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

Name of the periodical

Agriculture

ISSN

2077-0472

e-ISSN

2077-0472

Volume of the periodical

12

Issue of the periodical within the volume

10

Country of publishing house

CH - SWITZERLAND

Number of pages

18

Pages from-to

1574

UT code for WoS article

000872025300001

EID of the result in the Scopus database

2-s2.0-85141864085