Do subsidies drive productivity? A cross-country analysis of Nordic dairy farms

McCloud, Nadine; Kumbhakar, Subal C.

doi:10.1016/s0731-9053(08)23008-2

Cited by 54 publications

(48 citation statements)

References 15 publications

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“…Regional differences in farm performance are a common finding (Barnes et al 2011, European Commission 2011, Galanopoulos et al 2006, Hadley 2006, Kumbhakar and Lien 2010, McCloud and Kumbhakar 2008, Sipiläinen et al 2008, Wang et al 2012. For Swedish farms specialising in beef production, differences in farm economic performance arising from differing regional and agro-environmental potential have been found to be relatively well compensated by the subsidy support provided for the period 1998).…”

Section: Regional Factor Endowmentsmentioning

confidence: 99%

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Manevska‐Tasevska

Hansson

Rabinowicz

2014

AFSci

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This study estimated the possibilities of reducing costs and improving input use in a sample of Swedish farms specialising in beef production. Input use efficiency was measured in a multi-output, multi-input distance function analysis, covering the period 2008-2011. For comparison, both the classical radial and the generalised non-parametric approach were used. The results revealed that on average, costs could be decreased by 20%. Both models constructed frontiers where: i) the rankings of farms according to efficiency were positively and highly correlated and ii) the size and the significance of the parameter estimates were similar. Input-saving technologies were found to be positively influenced by livestock density, pasture availability and the use of coupled income support. Larger farms, farms with higher specialisation in beef cattle, farms with a larger number of animals older than 2 years, farms converting to organic production, farms located in less favoured areas and farms located in regions with a shorter grazing period were found be less efficient.

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Section: Regional Factor Endowmentsmentioning

confidence: 99%

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Manevska‐Tasevska

Hansson

Rabinowicz

2014

AFSci

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“…The findings to date consistently show that farms exposed to environmental constraints are less efficient (McCloud and Kumbhakar 2008, Sipiläinen et al 2009, Kumbhakar and Lien 2010, Manevska-Tasevska et al 2014). An unavoidable question in this regard is how farms operating in environmentally sensitive regions and/or applying output-reducing farm management practices fare under such conditions.…”

Section: Introductionmentioning

confidence: 78%

“…Although farms operating in environmentally sensitive regions and/or applying output-reducing farm management practices are known to be highly dependent on subsidies (Acs et al 2009, Breustedt et al 2011) and derive on average greater benefits from policy support (McCloud and Kumbhakar 2008), knowledge of the effects of subsidies in compensating for agricultural output losses owing to environmental and/or production restrictions is still lacking. Such knowledge could help identify the importance of farm support for the survival of farms, suitable practices for rural development programme evaluations and future policy recommendations for support allocation.…”

Section: Introductionmentioning

confidence: 99%

“…In particular, the proportion of organically managed area in Sweden (16%) is among the highest in the EU (Statistics Sweden 2014), after Austria (19%), and is continuing to grow (EC 2013). Furthermore, Sweden is among the countries with the highest distribution of rural development support in the EU and has among the highest marginal product of subsidies for dairy farms (McCloud and Kumbhakar 2008). During the period 2000-2006, for example, rural development support was distributed to 86% of Swedish farms included in the national Farm Accounting Data Network (FADN) (EC 2009).…”

Section: Introductionmentioning

confidence: 99%

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Pure and compensated efficiency of Swedish dairy farms

Manevska‐Tasevska

Rabinowicz

Surry

2016

AFSci

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The compensatory effect of environmental subsidies for agri-environmental output constraints was evaluated through a comparative analysis observing the ‘pure’ efficiency, as a benchmark for prevailing production conditions, and the ‘compensated’ efficiency, as a proxy indicator of the compensation. An unbalanced data panel covering 3578 Swedish dairy farms in the period 2002-2012 was used. The analysis showed that in the study period, environmental farm support decreased the differences in farm revenue generated by agri-environmental output constraints in Sweden. However, the environmental support distribution did not succeed in meeting regional needs, so difficulties in farmers’ ability to generate output in southern and central forest and valley areas of Sweden were visible. Furthermore, the environmental agricultural support had only a partial subsidisation effect on ‘green’ farm management practices, with full compensation being achieved for organic and capital-extensive farming, whereas low livestock density farming was not sufficiently compensated. This analysis reveals incentives with policy implications for farm economic performance and provides direct input to future policy recommendations for environmental support allocation.

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“…The reality, however, is somewhat different. While direct support to farmers in the 1945–1980s era might appear consistent with induced innovation (Hayami and Ruttan, ) empirical work has found little evidence that the CAP has been useful in this regard (McCloud and Kumbhakar, ). Indeed, many studies have found that farm subsidies have a negative impact on technical efficiency and productivity (Hadley, ).…”

Section: Agricultural Policy Erasmentioning

confidence: 99%

Liberating Farming from the CAP

Rickard¹

2012

Economic Affairs

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Global food producers face severe challenges in feeding the world's population at affordable prices. It is therefore essential that EU agricultural policy now focuses on maximising the Community's food production. This is only likely to be achieved if direct income payments are rapidly phased out allowing the industry to restructure, which will involve the concentration of production on larger‐scale farms.

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Do subsidies drive productivity? A cross-country analysis of Nordic dairy farms

Cited by 54 publications

References 15 publications

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Input saving possibilities and practices contributing to more efficient beef production in Sweden

Pure and compensated efficiency of Swedish dairy farms

Liberating Farming from the CAP

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