AGRICULTURAL MODELS IN EU FADN REGIONS AND CHANGES IN FARM PRODUCTIVITY AND INCOMES

• Main Author: Łukasz Kryszak
• Format: Article
• Language: English
• Published: University of Life Sciences in Poznań 2018-12-01
• Series: Journal of Agribusiness and Rural Development
• Subjects: Malmquist index; productivity analysis; farm income; FADN regions
• Online Access: http://www1.up.poznan.pl/jard/index.php/jard/article/view/1105

The purpose of this paper is to present and comparethe level of and changes in (total and partial) productivityand basic income categories in FADN regions. The regionswere grouped into 4 clusters where relatively similar types ofagriculture predominate. Changes in total factor productivity(TFP) were evaluated using the Malmquist index and Tokarski’smethod. The research showed that regions with extremelyintensive agriculture achieved a high level of productivityand income. However, while there is little potential for productivitygrowth (especially through improved technical efficiency)in these areas, local farms implement technologicalprogress. Regions with ‘industrial’ agriculture generally demonstratelow levels of TFP, which is however accompanied bygrowth due to advances in both efficiency and technology. Inregions where less developed or more traditional agriculturepredominates, low to medium levels of incomes and of partialand total productivity were observed whereas the growth ratesfor labor and land productivity were relatively high. Also, thekey economic category for the farming sector, i.e. incomefrom labor inputs, was observed to grow at a relatively highpace. Note that an analysis of productivity and profitability inagricultural holdings based on only one measure or researchmethod can lead to hasty conclusions.