Economic results of Agricultural Enterprises in 2005

Abstract

Using a file of economic indicators of a sample of selected agricultural enterprises, their economic results have been evaluated according to their production and climatic conditions, production orientation and the system of management since 1996. The long-term tendencies of economic results and the influencing factors shall be defined according to this analysis. The authors aim to assess the influence of external conditions on management of agricultural enterprises and how the economic result can be influenced. Next, the authors aim to analyse the influence of the accession of the Czech Republic to the EU. In 2005 the agricultural enterprises suffered a decrease in their profit compared with 2004, followed by a decrease of the profit rate. The decrease in the number of labour force and at the same time the increase of labour productivity shows a long-term tendency. Subsidies in agriculture have also been increasing in the long-term perspective. There was the first significant increase in 2004. Subsidies are one of the most important factors influencing the economics of agricultural enterprises and the dependence of their earnings on subsidies is increasing.

Economic development in Slovak agriculture

“…other authors, Sojkova et al (2008), Střeleček et al (2007) also deal with the economics of agricultural enterprises.…”

Balancing of the chosen intangible fixed assets according to the Czech accounting legislation, German accounting systems and international accounting standards

“…For that reason, it is also necessary to take these assets into consideration and it is possible to trace the efforts of a number of experts to determine an adequate price of such assets. Střeleček et al (2007) also show, that neither the economic theory nor practice deal sufficiently with the evaluation of the technical development i.e. the relation between the fixed assets and the revenues of the enterprise.…”

Influence of production change on return to scale

“…The return to the scale model offers a possibility to assess the change in the profit volume related to the volume of production and each cost indicators. Střeleček et al (2007Střeleček et al ( , 2008 discusses the assessment of cost efficiency of farms in a regular evaluation of the profit/loss of farms according to their own investigation and classification of farms according to the external farming conditions. They conclude that the insufficient profitability of agriculture in less productive years causing a relative cost overrun is a permanent problem to deal with.…”