Medium Term Analysis of Technical and Allocative Efficiency in Romanian Farms Using FADN Dataset

Abstract

The Farm Accountancy Data Network (FADN) is an annual survey established by the European Union in order to estimate the economic impact of the Common Agricultural Policy on farmers. Lots of scholars have investigated the technical, economical and allocative efficiency using a non-parametric approach such as the Data Envelopment Analysis (DEA). Romanian farms belonging to the Farm Accountancy Data Network dataset have highlighted modest levels of technical efficiency compared to the average European value investigated by other authors. The purpose of this study was to assess using the DEA approach technical, economic and allocative efficiency in Romanian farms belonging to the FADN dataset from 2007 to 2012. Findings have pointed out an increase of technical efficiency compared to previous studies carried out in transition economies such as Poland, Slovenia and Bulgaria, as a consequence of an intense generational turn over in Romanian characterized by a younger high skill and qualified farmers' generation. Poor land capital, in terms of utilized agricultural areas, and a low level of investments in new technologies, were the main downsides in Romanian farms; hence, the National Rural Development Plan should improve financial subsides in order to get better modest agrarian plots in farms scattered in the Romanian rural space.

Sustainable Livestock Farming in the European Union: A Study on Beef Farms in NUTS 2 Regions

“…Starting from Cluster 1 (High-yield specialist livestock farms), it can be seen that the high production and the considerable number of livestock units per hectare make these farms less vulnerable from an economic point of view but represent a challenge from an environmental perspective [22]. Moreover, considering that these farms are located in areas with a heavy irrigation use, probably for fodder production, it is a further indication of their considerable specialization, with positive implications with respect to technical efficiency [28].…”

“…Another study carried out in Romania highlighted the dependence of cattle farmers' incomes on fixed investments and subsidies [28]. In addition, differences in income among European beef producers were found [29].…”

“…Although the livestock sector in Europe is of considerable importance, few studies have addressed the characteristics of bovine meat [27][28][29]. A recent study on the technical efficiency of farms in Bulgaria [27] showed that, as the degree of specialization of farms increases, the technical efficiency rises too.…”

“…A recent study on the technical efficiency of farms in Bulgaria [27] showed that, as the degree of specialization of farms increases, the technical efficiency rises too. Furthermore, pig, poultry, or cow farms seemed to be more efficient than activities not specialized in livestock but in other agricultural products [28].…”