Measuring the success of Finnish family farms

Mäkinen, Heikki; Rantamäki-Lahtinen, Leena; Ylätalo, Matti; Vehkamäki, Seppo

doi:10.1080/16507541.2010.481900

Cited by 5 publications

(6 citation statements)

References 20 publications

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“…In addition, in light of the other key objectives of CAP 2021-2027 inspired by the environmental, social and economic dimensions of sustainability, and the role of recreational activities in sustainability promotion, and good agricultural practices encouragement, with a positive impact on farms, households and rural territory development (Tew and Barbieri 2012;Mastronardi et al 2015;Flanigan et al 2015), it is particularly important that policy-makers promote a shift of perspective of farmers perhaps too focused on subjective success factors (Mäkinen et al 2009) towards a new agritourism business model that aims to increase firm's profitability-that is in line with "with economic and non-economic benefits for society and the local community" (Broccardo et al 2017, p. 2). This represents a viable option for overcoming the lags of farm income behind the rest of the economy.…”

Section: Discussionmentioning

confidence: 99%

Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy

et al. 2021

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Farms that operate in less favoured areas (LFAs) often suffer in achieving adequate profits. Diversification strategies, such as direct selling and offering recreational services, can play an important role in integrating earning sources and, as a consequence, increasing farm profitability. Such opportunities would depend on the efficient distribution and use of farm resources among different activities as well as the added value creation of farm output. However, achieving positive results is not obvious in LFAs due to different types of inherent constraints (geographical, social, economic). The paper aims to evaluate the role of agritourism in affecting the economic performance of multifunctional farms located in a less favoured area of Sardinia (Italy). To be more precise, using so-called working farm income as the main indicator resulting from balance sheet analysis, production factor rewards are determined for 15 agritourism farms. The results show controversial performance but basically highlight the difficulty agritourist farmers have both remunerating their work at market price levels and being profitable. This research contributes to the debate on LFAs and offers useful reflections for policy-makers and practitioners about the potential and critical aspects of agritourism in LFAs.

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Section: Discussionmentioning

confidence: 99%

Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy

et al. 2021

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“…Second, we must recognize that the use of subjective performance measures may lead to findings that differ from those based on objective performance measures. In many studies, subjective and objective measures of farm performance have been often treated as equivalent although they are often not correlated (Jackson‐Smith et al., 2004; Mäkinen et al., 2009). One explanation is that farmers are not very familiar with economic indicators typically used in business analysis.…”

Section: Methodsmentioning

confidence: 99%

“…One explanation is that farmers are not very familiar with economic indicators typically used in business analysis. They rate their own financial success based on the liquidity available in their bank account for private consumption and to pay the bills (Mäkinen et al., 2009). Subjective ratings therefore reflect a broader view of farm performance than objective measures focused on more specific financial indicators capturing the production side of agriculture at the enterprise level.…”

Section: Methodsmentioning

confidence: 99%

Does short food supply chain participation improve farm economic performance? A meta‐analysis

Chiaverina

Drogué

Jacquet

et al. 2023

Agricultural Economics

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Many researchers, policy makers, and food activists view Short Food Supply Chains (SFSC) as attractive levers for improving farm income and the sustainability of farming systems. However, the empirical evidence documenting the association between SFSC participation and farm economic performance has been mixed. In this study, through a meta-analysis using a logistic regression, we identify key factors to explain differences between studies that find better economic performance in SFSC and those that do not. Our meta-analysis consists of 48 studies published in English and French from 2000 to 2022 that examine the economic performance of farms engaged in SFSC. Based on far more empirical evidence than previous reviews, we find that the relationship between SFSC participation and farmer income remains ambiguous. More specifically the findings indicate that the reported effect of SFSC on a farm economic performance varies depending on location and the indicator used to capture the economic performance of farms. Studies conducted in Europe are more likely to report higher farmer income as are studies that use profit satisfaction metrics rather than measures of gross or net income. We also emphasize the need to interpret the reported results cautiously because few are based on causal inference methods. Furthermore, the very few studies that account for selection bias often do so with inadequate corrections.

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“…However, the problem is that in the agricultural sector due to the low mobility of productive resources, and the low reproduction capability of production factors, the right of the marginal revenue equalization of production factors works to a limited extent. That is why the weaker entities, due to the lack of alternatives in terms of market activity, may continue to operate in the market at the low efficiency of production factors applied and the depreciation of assets (Makinen et al 2009). In addition, there are environmental limitations when it comes to increase the efficiency of the primary production factor, which is the land.…”

Section: The Implications Of the Complexity Issue In Agriculturementioning

confidence: 99%

The problem of complexity in economics on the example of the agricultural sector

Grzelak¹

2015

AGR ECON-CZECH

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Th e main aim of the article is recognition of the issues of complexity in economics with the particular emphasis on agriculture, as well as indication of resulting implications for this sector. Complexity in economic theory is in general perceived from the perspective of external eff ects, while the problem may also have other connotations: as the so-called fallacy of composition, or the phenomenon of entropy. Th e problem of complexity indicates the need for further refl ection on the holistic perception of economic processes. Th is is particularly evident in the ca se of agriculture, when the evaluation based mainly on microeconomic approach from the perspective of the eff ect/cost relationship loses sight of the environmental, social, and cultural context. Focus should also be put on the entropy approach, which takes into account the openness of socio-economic systems and the limitations of resources, including the environment. Both the operating practice of agriculture together with the institutional surrounding, and agricultural economics are more advanced in the area of solving the problems of complexity on the practical and theoretical grounds, but there are still many issues that require solutions, particularly quantifi cation of externalities. Th e work is theoretical in nature and a heuristic approach was applied in the considerations.

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Measuring the success of Finnish family farms

Cited by 5 publications

References 20 publications

Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy

Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy

Does short food supply chain participation improve farm economic performance? A meta‐analysis

The problem of complexity in economics on the example of the agricultural sector

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