Impact Analysis of the Young Farmers’ Support Program on Slovenian Dairy Sector Development Using Econometric Modeling Approach

Abstract

This study analyzes the effects that action 112 of the Rural Development Policy had on the socioeconomic status of Slovenian dairy farms. The data used in this paper were collected from Farm Accountancy Data Network (FADN), a database for applicants in action 112 (young farms transferees), from whose applications for participation in this action the data were obtained. Twenty-eight different econometric models were developed during the first stage of the research. The evaluation of the models was subsequently performed by applying valid statistical and econometric criteria. The results reveal the main positive effects that action 112 had on socioeconomic indicators of the dairy farms: number of full-time labor power, number of head of large livestock, total revenue (in euros) and net value added. Statistically significant differences in benefits from action 112 among dairy farms were determined by using two sets of dummy variables: region and level of education. The research in the field of the effect of the rural development policy action support of young farmers on socioeconomics performance of milk farms can make a significant contribution to developing the researchers’ work and policy makers’ decisions. Furthermore, this research is important from the agronomic point of view, since its results support two of the basic goals of Common agricultural policy after 2020: environmental care and conservation of landscape and biodiversity.

Sustainability Indicators for Dairy Cattle Farms in European Union Countries: A Systematic Literature Review

“…They represent the economic value (in EUR) of the goods and services produced by a farm [247]. Along with the concept of the product value, the added value of a product describes the farm's financial benefit [85,245,246]. Essentially, the added value refers to the increase in the value generated by a production process, calculated from the average value of the product prior to taxes [152,247].…”

“…Essentially, the added value refers to the increase in the value generated by a production process, calculated from the average value of the product prior to taxes [152,247]. An example of added value applied to the milk production system is the milk composition (proteins, fats, and somatic cell count) or the method of production, measured in EUR per unit of milk processed [85,246,247].…”

Barriers and Drivers Underpinning Newcomers in Agriculture: Evidence from Italian Census Data

“…However, the novel literature regarding the Young Farmers Scheme has been oriented towards the success factors of the scheme. A greater presence of young people is necessary in order to accelerate and concretise the renewal that the agricultural sector needs to increase farmers' incomes [9], be more competitive [10], address environmental challenges, and ensure a contribution to climate change adaptation and mitigation [11]. Young people are also at the forefront of the multifunctional agriculture model, which is changing the perception of the Italian primary sector, often with important repercussions for the environment and the community, such as renewable energy production or social agriculture [11].…”

An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece

“…Although novel literature regarding the Young Farmers Scheme has been oriented toward success factors of the Scheme, a handful of scholars analyze the impact of the Scheme in rural growth both at national and regional levels. Benefits of the Scheme include farmers' income increase [5] and farm holding survival [9], farm productivity [10], multidirectional efficiency [11], and social sustainability indicators such as employment [12].…”