Optimal Farm Size and Effectiveness of Agriculture in the EU: The Case of Wheat Yields

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F22%3APU144237" target="_blank" >RIV/00216305:26510/22:PU144237 - isvavai.cz</a>

Výsledek na webu

<a href="http://www.transformations.knf.vu.lt/54c/article/opti" target="_blank" >http://www.transformations.knf.vu.lt/54c/article/opti</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Optimal Farm Size and Effectiveness of Agriculture in the EU: The Case of Wheat Yields

Popis výsledku v původním jazyce

The article concentrates on the relationship between the size of a farm and its efficiency in relation to wheat production in the European Union (EU). The issue is not new, however fundamental from the point of view of the agricultural policy, as the appropriate shape of the agrarian structure affects the economic rationality in agriculture and significantly improves the productivity. We analysed data for the period between 2004 to 2016 while using the Farm Accountancy Data Network. The fixed effects model was used to identify the explanatory variables for farm size and wheat yields. We calculate the yields per hectare as the ratio of the sum of input costs per hectare to the cost of producing a unit of yield per hectare. Using the 1st derivative, we then estimate the marginal cost of the inputs for each of the farm size categories. Our main conclusion is that with the growing size of a farm, there is a continuous increase in yields of wheat per hectare. This result is achieved by increasing the specific crop costs, a significant part of which are fertilizers and crop protection products, both with respect to the cultivated area and the production achieved. When evaluating the efficiency of production, the optimal size of the economic unit (according to the FADN categorization) is 5. Up to the size category 5, there is an increase in production with respect to the monetary value of production inputs. In the case of larger farms, the ratio is declining.

Název v anglickém jazyce

Optimal Farm Size and Effectiveness of Agriculture in the EU: The Case of Wheat Yields

Popis výsledku anglicky

The article concentrates on the relationship between the size of a farm and its efficiency in relation to wheat production in the European Union (EU). The issue is not new, however fundamental from the point of view of the agricultural policy, as the appropriate shape of the agrarian structure affects the economic rationality in agriculture and significantly improves the productivity. We analysed data for the period between 2004 to 2016 while using the Farm Accountancy Data Network. The fixed effects model was used to identify the explanatory variables for farm size and wheat yields. We calculate the yields per hectare as the ratio of the sum of input costs per hectare to the cost of producing a unit of yield per hectare. Using the 1st derivative, we then estimate the marginal cost of the inputs for each of the farm size categories. Our main conclusion is that with the growing size of a farm, there is a continuous increase in yields of wheat per hectare. This result is achieved by increasing the specific crop costs, a significant part of which are fertilizers and crop protection products, both with respect to the cultivated area and the production achieved. When evaluating the efficiency of production, the optimal size of the economic unit (according to the FADN categorization) is 5. Up to the size category 5, there is an increase in production with respect to the monetary value of production inputs. In the case of larger farms, the ratio is declining.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název periodika

Transformations in Business&Economics

ISSN

1648-4460

e-ISSN

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Svazek periodika

20

Číslo periodika v rámci svazku

3C (54C)

Stát vydavatele periodika

LT - Litevská republika

Počet stran výsledku

17

Strana od-do

653-669

Kód UT WoS článku

000770325400017

EID výsledku v databázi Scopus

2-s2.0-85123372260