The impact of investment support from the Rural Development Programme of the Czech Republic for 2007-2013 on the economic efficiency of farms

Hlavsa, Tomáš; Hruška, Martin; Туркова, Е.В.

doi:10.7896/j.1014

Cited by 12 publications

(7 citation statements)

References 16 publications

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“…Secondly, the investment activity of Czech farms has dynamically increased since the EU accession. As the consequence of higher investment and operational subsidies, the credibility and rating of Czech farmers strengthened from the banks' point of view (Hlavsa et al, 2017). However, there are still big differences between small farms and large agricultural companies which are two opposite groups of agricultural enterprises as the Czech Republic has a dual farm structure rooted in the history (Janovska et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Socio-demographic drivers of the risk-taking propensity of micro farmers

Špička

2020

JEEE

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Purpose Risk attitude is an elementary attribute of entrepreneurial behaviour. Determinants of risk-taking propensity have been widely investigated in the group of entrepreneurs and non-entrepreneurs so far. There is a lack of evidence on determinants of risk-taking propensity in the farming business, which is considered as risky business because of the ongoing climate change and epidemic outbreaks. Alternatively, the risk of lower European Union budget raised the question, how to implement publicly supported financial instruments for micro and small farmers which have lower credit rating. The purpose of this study is to find socio-demographic determinants of the risk-taking propensity of the Czech micro farms, controlling for the type of farming. Design/methodology/approach The survey of 747 micro farmers was processed through ordinal logistic regression. The study is based on the subjective self-assessment of the risk-taking behaviour which is frequently used to measure risk-taking attitude. The results are representative from the type of farming point of view. Findings The model provided clear evidence that age, household size, living with the partner/wife/husband and level of education have a significant relationship with risk-taking propensity. The most risk-tolerant farmers are young with less formal education and living in small households. The risk-taking propensity varies by the type of farming. Specialized crop farms have significantly higher risk-taking propensity than farms with a substantial share of livestock production. Alternatively, gender, feeling about household income and religion are not significantly related to the risk-taking propensity of the Czech micro farms. Research limitations/implications The main limitation of the study is the number of explanatory variables and the use of self-assessment of risk-taking attitude. The risk attitude can be explained by other variables which require in-depth qualitative research, such as past risk experience, the structure of decision problems, market orientation and operation under subsistence conditions. Practical implications The significant determinants of risk-taking attitude of micro farmers are important for banks, the Czech Support and Guarantee Fund for Farmers and Forestry and for policymakers who design the rules for post-2020 common agricultural policy. The study is original and valuable for the Central and Eastern European countries’ implementation of financial instruments as new rules for investment support are being prepared and research on the risk-taking attitude of the most vulnerable segment of farmers has not been conducted. Originality/value The originality of this study is from the perspective of agricultural sector as well as from the micro farms point of view. The results have commercial and political implications. Younger farmers, singles and lower-educated farmers have significantly higher risk-taking propensity and can be potentially risky clients for banks. Such farmers represent the financial gap in the credit market, and their viable development projects could be subject for implementation of financial instruments co-financed by the European Agricultural Fund for Rural Development in the forthcoming programming period past 2020.

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Section: Introductionmentioning

confidence: 99%

Socio-demographic drivers of the risk-taking propensity of micro farmers

Špička

2020

JEEE

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“…Another issue is the development-oriented investment support of farms. It is shown that in the conditions of lowdeveloped agriculture, the lack of support for investments leads to a slowdown in development and can even worsen the economic results of farms (Hlavsa et al, 2017;Kirchweger et al, 2015), while subsidies themselves contribute to an increase in resource productivity (Hubbard et al, 2014). In this paper, however, we focus on the influence of decoupled subsidies.…”

Section: Do Operating Subsidies Increase Labour Productivity In Polish Farms?mentioning

confidence: 97%

“…Many authors argue that subsidies have a noticeably positive impact on the development of farms and an increase in the overall productivity of agriculture by increasing investment opportunities, leading to an increase in the scale of production and enabling the replacement of more expensive factors of production with cheaper ones (Blancard et al, 2006;Cechura et al, 2015;Hlavsa et al, 2017;Kirchweger et al, 2015;Zsarnóczai and Zéman, 2018). Such a relationship was also confirmed for Polish farms (Kusz, 2018).…”

Section: Do Operating Subsidies Increase Labour Productivity In Polish Farms?mentioning

confidence: 99%

Do operating subsidies increase labour productivity in Polish farms?

2021

Stud. Agr. Econ.

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“…Membership in the EU has given the opportunity for agricultural producers to use the EU support which led to faster economic growth and further development of well-being in rural areas. According to the author, the most important sources of these changes are the CAP and structural funds (Wigier, 2014;Hlavsa et al, 2017). The CAP instruments are covering support for agriculture which resulted in growth the income of farms', and structural funds have increased the investment for the modernization of agriculture and food sectors and for the development of rural areas.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Dynamics in the Agricultural Sectors of the Baltic States: the Effects of the Common Agricultural Policy and Challenges for the Future

Šapolaitė¹,

Veveris²,

Volkov³

et al. 2019

Montenegrin Journal of Economics

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Sustainable agriculture is the basis for long-term economic growth ensuring employment for the rural population. The aim of this research is to assess the dynamics in agricultural output, investments, direct payments and energy use in Estonia, Latvia and Lithuania under the Common Agricultural Policy (CAP) during 2008-2017. The method of research is the evaluation of production factors generated by agriculture and related activities carried out by the model of the EAA system. The performance of the agricultural holdings is measured using economic indicators: output of the agricultural 'industry', gross fixed capital formation (GFCF), direct payments, return on capital, total labour force input, average farm income. We discuss the trends in absolute and relative indicators relates to different aspects of the sustainable agricultural development to identify the key priorities of the CAP in the Baltic States which are new European Union Member States. The results indicate that in Estonia, Latvia and Lithuania EU support has affected investments in capital. The amount of GFCF over ten years annually grew an average by 0.1% in Estonia, by 8% in Latvia and by 17% in Lithuania which has led to increase productivity on farms, positively influenced growth on output agriculture and income as well. During the period 2008-2017 marked growth in the agricultural output levels and direct payments on average annually by more than 4% and 5-6%, respectively. These induced higher capital investments which require reasonable revision of the CAP measures in order to avoid overinvestment and address changes in the global agricultural markets. JEL classification:Q10, E22, E24, H71

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The impact of investment support from the Rural Development Programme of the Czech Republic for 2007-2013 on the economic efficiency of farms

Cited by 12 publications

References 16 publications

Socio-demographic drivers of the risk-taking propensity of micro farmers

Socio-demographic drivers of the risk-taking propensity of micro farmers

Do operating subsidies increase labour productivity in Polish farms?

Dynamics in the Agricultural Sectors of the Baltic States: the Effects of the Common Agricultural Policy and Challenges for the Future

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