Estimation of technical efficiency of Czech farms operating in less favoured areas

Rudinskaya, Tamara; Hlavsa, Tomáš; Hruška, Martin

doi:10.17221/52/2019-agricecon

Cited by 11 publications

(4 citation statements)

References 13 publications

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“…The lower productivity of small farms was also found by Key (2019), who analysed US agriculture, Keizer and Emvalomatis (2014), whose study investigated the Dutch dairy sector, and Alvarez and Arias (2004), who assessed Spanish dairy production. In the Czech Republic, the lagging behind of small farms was observed, for example, by Novotná and Volek (2015), who analysed the size-labour productivity relationship, and by Čechura (2014) and Rudinskaya et al (2019), whose studies took into consideration the heterogeneity of farms with regard to their size in the evaluation of technical efficiency. Moreover, Bokusheva and Čechura (2017) provided evidence for the positive association between farm size and TFP in Czech cereal production.…”

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confidence: 99%

Productivity and efficiency in Czech agriculture: Does farm size matter?

Čechura¹,

Kroupová²,

Lekešová³

2022

Agric. Econ. - Czech

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This paper deals with the sources of total factor productivity (TFP), namely technical efficiency, scale efficiency, and technological change, considering the size of agricultural producers and using balanced panel data in the period 2014–2018 drawn from the Farm Accountancy Data Network (FADN) database for three sectors of Czech agriculture – cereals, milk, and beef. The investigation is based on the stochastic frontier (SF) modelling of an input distance function (IDF) with four error components (heterogeneity, statistical noise, persistent and transient inefficiency). The sector-specific models are estimated by a four-step estimating procedure with a system generalised method of moments (GMM) estimator to address the endogeneity problem. The results reveal inter- and intra-sectoral differences in productivity drivers. In particular, the smallest producers lag considerably behind the largest ones due to the scale effect (SEC). While large farms should focus on technological change, improvements in scale and technical efficiency have been identified as the main sources of coping with productivity losses for small farmers.

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confidence: 99%

Productivity and efficiency in Czech agriculture: Does farm size matter?

Čechura¹,

Kroupová²,

Lekešová³

2022

Agric. Econ. - Czech

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“…up to 4 ha and up to 150 ha). For further subdivision, the categorisation used to determine the degressivity of Areas with Natural Constraints payments (Rudinskaya et al 2019) was used, so the resulting number is eight groups. These groups are established based on these upper acreage limits (4, 150, 300, 500, 900, 1 800, 2 500 ha, unlimited).…”

Section: Methodsmentioning

confidence: 99%

Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic

Lososová¹,

Zdeněk²

2023

Agric. Econ. - Czech

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The draft Strategic plan of the Common Agricultural Policy (CAP) for the Czech Republic has provoked the displeasure of many entrepreneurs in agriculture due to the redistributive payments, to which 23% of the total volume of direct payments will be directed instead of the originally planned 10%. According to the creators of the Strategic plan, this should support the fairer distribution of payments, respecting the benefits arising from the scale of production of large companies. Critics of the plan claim that operating subsidies are already degressive and fear an adverse impact on medium-sized companies, which, given the structure of the companies in the Czech Republic, will affect a large part of agriculture. This article aims to identify the farm size for which direct payments will be reduced and the likely degree of the impact on the farm economy. Our results suggest that the new payment system will lead to a reduction in direct payments for farms larger than 313 ha and, from a farm size of 873 ha, direct payments will fall below 85% of the average, which may cover around 50% of the agricultural land in the Czech Republic.

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“…As our farms are all within a less favoured area, we examine those farms within disadvantaged compared to severely disadvantaged areas (SDA). Farms with the majority of land in SDA are limited by climate, altitude, difficult topography and remoteness and national payment regimes are based on the severity of the disadvantaged land (Barnes et al, 2020; Rudinskaya et al, 2019). We produce a dummy variable that reflects whether the land is classified as severely disadvantaged compared to disadvantaged.…”

Section: Methodsmentioning

confidence: 99%

The role of family life‐cycle events on persistent and transient inefficiencies in less favoured areas

Barnes

2022

J Agricultural Economics

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Family farms dominate less favoured areas (LFAs) within Europe, and family life-cycle conditions, such as succession and retirement, affects how these farms adapt to changing circumstances. Past studies of on-farm technical efficiency have not directly addressed these conditions, but they may explain why some farms are more efficient than others, especially as the farm family model dominates most farming systems. Motivated by the UK's withdrawal from the EU and the debate around establishing replacement support policies, we apply a multi-step model to measure both transient and persistent inefficiencies using a panel of LFA cattle and sheep farms in Scotland over the period 2003-2020.We find a greater prevalence of persistent compared to transient inefficiency, which suggests that structural problems still exist. Farms with planned succession are found to have higher persistent efficiencies, whereas farmers nearing retirement have lower levels. Other factors, such as dependence on subsidy, off-farm activity and classification as severely disadvantaged tend to compound these lower efficiencies.We argue that life-cycle conditions should not be ignored in studies of farm technical efficiency. Within the scope of framing a new agricultural policy for UK administrations, these results inform the debate on support for LFAs, as well as the promotion of support towards generational renewal to ease transition across farm family life-cycle events.

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Estimation of technical efficiency of Czech farms operating in less favoured areas

Cited by 11 publications

References 13 publications

Productivity and efficiency in Czech agriculture: Does farm size matter?

Productivity and efficiency in Czech agriculture: Does farm size matter?

Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic

The role of family life‐cycle events on persistent and transient inefficiencies in less favoured areas

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