Agricultural models in EU FADN regions and changes in farm productivity and incomes

The purpose of this paper is to present and compare the level of and changes in (total and partial) productivity and basic income categories in FADN regions. The regions were grouped into 4 clusters where relatively similar types of agriculture predominate. Changes in total factor productivity (TFP) were evaluated using the Malmquist index and Tokarski’s method. The research showed that regions with extremely intensive agriculture achieved a high level of productivity and income. However, while there is little potential for productivity growth (especially through improved technical efficiency) in these areas, local farms implement technological progress. Regions with ‘industrial’ agriculture generally demonstrate low levels of TFP, which is however accompanied by growth due to advances in both efficiency and technology. In regions where less developed or more traditional agriculture predominates, low to medium levels of incomes and of partial and total productivity were observed whereas the growth rates for labor and land productivity were relatively high. Also, the key economic category for the farming sector, i.e. income from labor inputs, was observed to grow at a relatively high pace. Note that an analysis of productivity and profitability in agricultural holdings based on only one measure or research method can lead to hasty conclusions.