Assessing the Economic Viability of Agricultural Holdings with the Inclusion of Opportunity Costs

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00027251%3A_____%2F22%3AN0000006" target="_blank" >RIV/00027251:_____/22:N0000006 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.mdpi.com/2071-1050/14/22/15087" target="_blank" >https://www.mdpi.com/2071-1050/14/22/15087</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/su142215087" target="_blank" >10.3390/su142215087</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Assessing the Economic Viability of Agricultural Holdings with the Inclusion of Opportunity Costs

Popis výsledku v původním jazyce

A key area of sustainable agriculture is the economic sustainability of agricultural holdings. Agricultural holdings should achieve such an income that they are able to cover all of their costs. As part of this study, an indicator of entrepreneurial income and an indicator of economic profit were proposed. Economic profit, in contrast to entrepreneurial income, considers the costs of lost opportunities, so-called opportunity costs. For this purpose, three indicators of the opportunity costs of production factors of labor, land, and capital were defined and calculated. To assess economic profit between different groups of holdings, an economic viability index is established, which identifies a holding as sustainable or at risk. This indicator is composed of the entrepreneurial income indicator and the difference between entrepreneurial income and economic profit. Based on FADN data of a five-year time series, it was confirmed that extensive holdings specializing in grazing livestock are among the most economically endangered subjects. The highest proportion of sustainable holdings was found in holdings specializing in milk production. From the size point of view, small holdings are most endangered, which was confirmed for all production focuses. In contrast, more large and very large holdings were included in the group of viable holdings.

Název v anglickém jazyce

Assessing the Economic Viability of Agricultural Holdings with the Inclusion of Opportunity Costs

Popis výsledku anglicky

A key area of sustainable agriculture is the economic sustainability of agricultural holdings. Agricultural holdings should achieve such an income that they are able to cover all of their costs. As part of this study, an indicator of entrepreneurial income and an indicator of economic profit were proposed. Economic profit, in contrast to entrepreneurial income, considers the costs of lost opportunities, so-called opportunity costs. For this purpose, three indicators of the opportunity costs of production factors of labor, land, and capital were defined and calculated. To assess economic profit between different groups of holdings, an economic viability index is established, which identifies a holding as sustainable or at risk. This indicator is composed of the entrepreneurial income indicator and the difference between entrepreneurial income and economic profit. Based on FADN data of a five-year time series, it was confirmed that extensive holdings specializing in grazing livestock are among the most economically endangered subjects. The highest proportion of sustainable holdings was found in holdings specializing in milk production. From the size point of view, small holdings are most endangered, which was confirmed for all production focuses. In contrast, more large and very large holdings were included in the group of viable holdings.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název periodika

Sustainability

ISSN

2071-1050

e-ISSN

2071-1050

Svazek periodika

14

Číslo periodika v rámci svazku

22

Stát vydavatele periodika

CH - Švýcarská konfederace

Počet stran výsledku

15

Strana od-do

nestrankovano

Kód UT WoS článku

000887793400001

EID výsledku v databázi Scopus

2-s2.0-85142727128