Search Results (101)

This paper examines the farming systems and operational structures in the Region of Western Macedonia (RWM), Greece and constructs a typology of farms based on structural, operational, and socio-economic characteristics. Agriculture remains a vital pillar of the regional economy, particularly in the context of RWM’s ongoing transition to a post-lignite development model. Using farm-level data from the 2018 Farm Accountancy Data Network (FADN), Principal Component Analysis (PCA) identified four latent dimensions of farm heterogeneity—income and productivity, asset base, land size, and labour structure. Hierarchical and K-means cluster analysis revealed three distinct farm types: (1) medium-sized, high-efficiency farms with moderate reliance on subsidies (30% of the sample); (2) small-scale, family farms with modest productivity and limited capitalisation (48%); and (3) large, asset-rich farms exhibiting structural inefficiencies and lower output per hectare (22%). These findings highlight structural vulnerabilities, particularly the predominance of undercapitalised smallholdings, and provide a data-driven foundation for Thdesigning differentiated policies that support farm resilience, generational renewal, and sustainable rural development. Full article

Climate change is one of the most important environmental problems of the modern world. Without an effective solution to this problem, it is not possible to implement sustainable development. For this reason, in the European development strategies, including the European Green Deal (EGD), the reduction in greenhouse gas (GHG) emissions is one of the priorities. This also applies to sectoral strategies, including those related to agriculture. In this context, the monitoring of changes in GHG emissions becomes particularly important, and its key condition is an applicative estimation method, adapted to the available data and levels of assessment (globally, country, sector, economic unit). GHG emission calculations at the level of the agricultural sector are officially estimated by the state and non-governmental organisations. However, calculations at the level of the agricultural unit-farm remain a challenge due to the lack of detailed data or its incomplete scope to estimate GHG emissions. The other issue is the necessity of a representative data nature, taking into consideration the different profiles of various farms. The research focused on presenting a methodological approach to utilising FADN (Farm Accountancy Data Network) data for estimating GHG emissions at the farm level. The Intergovernmental Panel on Climate Change (IPCC) methodology was adopted to use available farm-level data. Some assumptions were needed to achieve this goal. The article presents the subsequent stages of GHG calculation using the FADN data. The results reveal significant differences in GHG emissions among farm types. The presented results indicated the primary sources of emissions from agriculture, including energy (e.g., fuel and electricity consumption), thus outlining the scope of action that should be taken to reduce emissions effectively. The study confirms that the method used helps estimate emissions at the farm level. Its application can lead to better targeting of climate policy in agriculture. Full article

Income level is a key indicator of the standard of living and the economic efficiency of undertaken activities. This paper aims to evaluate the earnings of Polish dairy farmers compared to those in other economic sectors between 2005 and 2022. The analysis covered 1688 family-run farms that participated continuously in the FADN system throughout the study period, with particular emphasis on farms that expanded their dairy cow herds. The remuneration for the labour of farmers and their families was estimated ex post by subtracting the opportunity costs of owned land and capital from farm income. The alternative cost of engaging one’s own land was determined on the basis of actual rental prices for farmland occurring in the surveyed farm groups in the years analysed. This information is collected in the FADN system from which the studied group of farms was drawn. The basis for determining the alternative cost of involvement of own capital was the average interest rates on deposits for households, concluded for a period of 6 months to 1 year inclusive, reported by the National Bank of Poland. The analysed population was divided into seven groups based on the number of dairy cows maintained. The analysis focused on two three-year reference periods: 2005–2007 and 2020–2022. The results were compared with average salaries and wages in non-agricultural sectors of the economy. Structural changes in agriculture, increased productivity, and the expansion of production scale in dairy farms indicate a growing professionalisation of the sector. The rise in farm incomes during the analysed period contributed to a significant increase in the remuneration for farmers’ and their families’ labour. The highest growth in remuneration was observed among farms with the greatest production potential and scale. While in 2005–2007 the remuneration for labour in dairy farms was lower than in non-agricultural sectors, this situation changed in 2020–2022. During this latter period, the average remuneration for labour on dairy farms slightly exceeded the average salary and wages in other sectors of the economy. Full article

The ongoing climate crisis and growing water scarcity are exerting increasing pressure on agriculture in Southern and Western Europe, leading to reduced crop yields, greater risk of land abandonment, and deterioration of soil quality. Despite the extensive literature on irrigation and water use in agriculture, the specific relationship between irrigation availability and changes in the type of farming (ToF) remains insufficiently investigated. This study aims to address this gap by analyzing data from the 2010 and 2020 Italian General Agricultural Censuses conducted by ISTAT, in combination with microdata from the Italian Farm Accountancy Data Network (FADN), focusing on irrigated farms in Southern Italy. Descriptive analysis reveals that over 60% of irrigated farms specialize in permanent crops and predominantly adopt efficient irrigation systems such as drip irrigation. Between 2010 and 2020, approximately 23.8% of farms changed their ToF; however, these transitions were not generally associated with improvements in productivity or profitability. Results from logistic regression models suggest that structural variables—including Utilized Agricultural Area (UAA), economic size, and demographic characteristics such as the farmer’s gender—play a more significant role in determining changes in the ToF than the presence of irrigation itself. Moreover, the adoption of organic practices and larger farm sizes are positively associated with ToF changes. These findings suggest that while there has been some shift toward less water-demanding and potentially more sustainable crops, the impact of irrigation on such transitions remains limited. The results underscore the need for more targeted agricultural policies and improved data collection to support effective climate adaptation strategies in the sector. Full article

In the context of increasing pressures on European agriculture, the economic sustainability of farming sectors is becoming a key strategic objective, especially for Member States with structural vulnerabilities such as Romania. This study proposes an integrated assessment of the economic sustainability of farming sectors in the European Union and Romania for the period 2013–2022 using an analytical framework based on composite indicators built on data from the FADN network. The seven indicators used are grouped into three dimensions: (i) economic performance—profitability, capitalization, and liquidity (FESI, FCI, PCFI); (ii) subsidy dependence and efficiency (FSDI, SEI); and (iii) technical–economic efficiency in the use of resources (FEPI, COEI). The results indicate accelerated economic growth of Romanian farms, but it is associated with structural vulnerabilities, such as low capitalization, high liquidity volatility, and high dependence on public support. In contrast, farms in the EU show superior financial resilience and a steady investment capacity. This study underlines the need for differentiated agricultural policies aimed at strengthening financial autonomy, increasing investment efficiency, and reducing the gap between Romania and the EU, helping to inform policy interventions for the transition towards a more competitive and resilient farming sector. Full article

Efforts to improve agricultural sustainability have increasingly focused on enhancing productivity while minimizing environmental impact. In the Republic of Serbia, dairy farming remains a critical sector due to its dual role in food production and environmental pressure. This study aims to evaluate the technical and eco-efficiency of dairy farms in the Republic of Serbia using FADN data and the Stochastic Frontier Analysis (SFA) method. Specifically, the SFA methodology was applied, which enables a separate assessment of time-invariant and time-variant efficiency, with the aim of clearly identifying the factors that shape milk production in the Republic of Serbia. It was found that the technical efficiency for the 2015–2023 period was at a level of 58.7%, while the eco-efficiency was estimated to be 13.1%. Observing the relationship between the estimated technical and eco-efficiency, it can be concluded that they share similar mechanisms for improvement. In both cases, time-invariant inefficiency dominated, indicating that factors under the control of farms, such as the characteristics of agricultural producers and farms, play a key role in shaping production efficiency. In this context, adopting circular economy principles, such as nutrient recycling, the use of renewable energy, and optimized input utilization, offers an additional opportunity to enhance both economic and environmental performance. Full article

This research focuses on an interdisciplinary approach to the financial energy of farms, allowing it to be linked to the overall financial health of the entity, which is influenced by various factors, including the use of equity and debt capital, and the treatment of money as a source of energy. The data source for the analysis consisted of statistics from the Farm Accountancy Data Network (FADN). This study encompassed the average agricultural holdings in the European Union, as well as average farms classified by individual regions and economic size classes. This research covered both the European Union as a whole and individual regions within EU member states. The objective of this study is to assess the factors that determine the financial security of EU farms using factor analysis. The results of this research indicate that financial energy may be one of the main factors shaping the financial security of farms. This is particularly true for small farms, which, in line with the goals of sustainable development, should increase their income (financial energy). Full article

Ensuring a fair income for farmers, as one of the key objectives of the Common Agricultural Policy (CAP), focuses on the economic dimension of sustainable agricultural development. Achieving the economic viability of farms is often prioritized in developing countries, as the economic dimension is crucial for farm survival in the long term. This paper aims to assess the economic viability of farms and examine the impact of various factors on their viability. The study focuses on family farms that were part of the Serbian Farm Accountancy Data Network (FADN) sample over a seven-year period from 2015 to 2021. Farm economic viability is evaluated using the opportunity cost approach. The results show that the highest proportion of economically viable farms was found in field crop farming, while grazing livestock farms were the least economically viable due to the extensive farming methods they typically employ. Among the determinants of farm viability, the most important was the asset turnover ratio, which positively influenced the economic viability of all types of farming. The results obtained may help farm managers identify the primary obstacles to achieving optimal long-term performance. Moreover, agricultural policymakers could improve existing measures and introduce new ones to strengthen the overall economic viability of farms. Full article

This research focused on the development of small farms, which in many countries form the basis of the agricultural sector. The specifics of this type of farm, as well as the way in which they operate, influence the possibilities for these farms to realise the model of sustainable agriculture. This study considers income and the rate of reproduction of fixed assets as the main measures of farm development, which are influenced by a number of endo- and exogenous factors. The research period covered 2017–2021, and the subjects of analysis were small individual farms located in Greece, Portugal, Lithuania, and Poland. The figures for the research were taken from the FADN system database. The purpose of this study was to assess the impact of endogenous agricultural factors on the development of small farms as measured by farm income and reproduction of fixed assets in four selected European Union (EU) countries, i.e., Greece, Portugal, Lithuania, and Poland. Spearman’s non-parametric rank correlation method was used to assess the impact of endogenous factors. Selected on the basis of correlation relationships, the farm development factors showed a significantly higher correlation with farm income than with the reproduction of the farm’s fixed assets. The analysis indicated that, irrespective of the location of the farm, factors significantly affecting income levels included the area of agricultural land and the number of full-time employees. Only in some countries was there a statistically significant correlation between farm income and the share of leased land, the number of full-time workers per 100 ha of UAA, the share of hired labour input, as well as the level of total farm subsidies received. Full article

One of the most successful on-farm diversification activities in Italy is the adoption of organic farming: a bona fide entrepreneurial approach to differentiating products for specific economic targets as opposed to merely a survival strategy to avoid decline and abandonment. The main objective of this paper is to assess the positioning of organic farming in periurban areas as defined in Rural Development Programmes (RDPs). Using Italian FADN data and running a logit regression model, we compare urban and periurban farms to other groups of farms identified in the RDP to assess their propensity to switch to organic farming. The assumption is that periurban farmers are more oriented to supplying organic products than farmers in other locations, given their proximity to urban populations who are keen on consuming organic products and are willing to pay a premium price for them. This, in turn, activates other on-farm functions such as the supply of public goods and services. This synergy is also relevant for the design and targeting of specific policies in line with the type of area considered in RDPs. Full article

Investments are the development core of every economic operator and the driving force for national economic development. While finding the optimal investment point is extremely difficult, every operator may seek to attain a level of fixed assets which allows them to maintain an increase in production and keep their income flowing. The difficulties in finding this optimum may lead to overinvestment. Hence, this paper estimates the parameters of the production function at various investment levels. Its purpose is to identify the relationship between the investment levels, the use of productive inputs, and growth or decline in production (output) levels. This study used microdata for 3273 Polish farms, as retrieved from the FADN (Farm Accountancy Data Network). The differences found at various farm investment levels allow for highlighting some problematic areas, e.g., in the context of excessive capital use relative to yearly increments in production values. The proposed method of analyzing overinvestment based on the production function can be extended to other countries. According to this paper, farms that invested too little or too much in relation to their production potential showed the worst economic performances, including the greatest declines in production. Full article

The main objective of this article is to define the current legal and economic framework for conducting activities in the field of carbon farming and the carbon certificate system in Poland. The research was conducted using desk research, and the legal acts in force in the EU and in Poland, as well as planned ones, were analyzed. The statistical data from Eurostat, the Farm Accountancy Data Network (FADN), Statistics Poland, and The Agency for Restructuring and Modernisation of Agriculture (ARMA) were analyzed. In the European Union, agriculture is responsible for 11% of all greenhouse gas (GHG) emissions, while in Poland, where the vast majority of these emissions are related to animal production, it is responsible for 8.5%. To ensure sustainable growth, it is necessary to reduce GHG emissions from agriculture. Work is underway in the EU to prepare legal regulations specifying the principles of carbon farming and introducing carbon certificates. The shape of this system is not yet precise, disputes within the EU bodies are related to the system of financing carbon farming, and certification principles. The presented assumptions raise great doubts among scientists. However, a voluntary certification system is in operation and starting to be used by Polish farmers. In Poland, from 2023, carbon farming is directly linked to the Strategic Plan for the Common Agricultural Policy, where PLN 2.78 billion has been allocated for the “Carbon farming and nutrient management” eco-scheme, which constitutes 64% of the funds for financing eco-schemes. The carbon farming system requires further strengthening and development. The most important factor was considered to be increasing the involvement of farmers, through appropriate financial incentives and increasing their knowledge. Further research directions should focus on long-term economic aspects in addition to environmental and technical aspects. Full article

Modern agriculture requires substantial energy inputs, a significant portion of which are derived from fossil fuels. In the interests of addressing global challenges, such as sustainable resource management and reducing greenhouse gas emissions, this study examines changes in energy efficiency within Polish agriculture following the country’s accession to the European Union. It emphasizes the impact of dynamic structural transformations on energy consumption patterns in the agricultural sector. The research, based on data from Statistics Poland and FADN (Farm Accountancy Data Network) covering the period 2004–2021, analyzes various farm types and their economic sizes. Key indicators include energy intensity in agricultural production, expressed as the ratio of energy consumption to production value, and the share of different energy carriers in total energy inputs. The results demonstrate an overall improvement in energy efficiency during the analyzed period, with energy intensity decreasing by an average of 40%. The most significant improvements were observed in large-scale farms. Additionally, there was a notable decline in the use of solid fuels, offset by increased reliance on diesel fuel and electricity. Despite these positive trends, challenges persist. Energy costs per unit of production value in Poland remain relatively high compared to other EU countries, driven by rapidly rising energy prices and the structure of Polish agriculture, which predominantly produces goods with relatively low added value. Furthermore, variations in energy consumption structures across production types highlight the importance of specialization in enhancing energy efficiency at the farm level. Full article

In the last two decades, the pig market in Poland has been influenced by two key events: accession to the European Union and the spread of African swine fever (ASF). During this time, the pig population in Poland has almost doubled, and the number of farms keeping pigs has fallen almost tenfold. On the other hand, the import of piglets intended for further rearing has increased significantly, which reduces the value added to production retained in the country. The changes taking place in the pig market in Poland in the conditions of ASF have, therefore, prompted the question of which pig-keeping systems are more profitable for pig producers, and identifying this relationship was the main objective of the analysis in this study. This research was conducted using source data from the databases of the Central Statistical Office, the FADN, and the Integrated Agricultural Market Information System of the Ministry of Agriculture and Rural Development. Factors influencing the value of pig production were identified using panel regression, and profitability analysis was performed based on changes in the levels of and relationship between feed costs and live pig prices. Feed consumption was determined based on feed rations for individual utility groups in both products. As the analysis has shown, a closed cycle of pig farming is characterized by better stability and resistance to market shocks compared to an open cycle (over the entire period under review, only the closed system ensured a positive surplus of production value over feed costs), which significantly increases the possibility of obtaining a positive surplus of production value over the value of the main cost, which is the feed cost. However, with the occurrence of extraordinary situations, such as an ASF outbreak in the herd, rebuilding production in a closed cycle may be much more difficult and expensive than production in an open cycle. Full article

The economic transformation following the collapse of the Eastern Bloc and the accession of Central and Eastern European (CEE) countries to the European Union (EU) are milestones that have set the current course for their agricultural sectors. With their accession to the EU, the CEE countries obliged, among other things, to adapt their agricultural activities to the requirements of the common organization of agricultural market and the Common Agricultural Policy (CAP). In 2004, the agricultural sectors of Central and Eastern European countries (the Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland and Slovakia), and in 2007, the agricultural sectors of Bulgaria and Romania, were significantly different from those of the EU countries. After almost two decades in EU structures and in the face of climate challenges, it is interesting to discuss the assessment of changes that have taken place in the agricultural sectors of CEE countries and their future. Based on FADN data, the structure of agricultural sectors in Central and Eastern Europe and selected EU countries for 2004–2021 was estimated in terms of types of farming and economic size classes. The agricultural sectors of CEE countries have become similar to those of EU countries in terms of agricultural production structure, and in 2021 will be characterized by a higher level of production specialization than when they accessed the EU. There was also an increase in the economic size of their production, but it was still significantly lower compared to the economic size of farms in EU countries. In light of the goals of the European Green Deal (EGD), this observation may be useful for moving into the next stage of development of the agricultural sector in Central and Eastern Europe. Indeed, achieving the EGD’s goals will require setting adopted development directions, i.e., formulating agricultural practices that facilitate the transition to more sustainable agriculture, such as practices based on the concept of sustainable intensification or ecological intensification. Full article