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Farm economic sustainability in the European Union: A pilot study

Author

Listed:
  • O'Donoghue, Cathal
  • Devisme, Simon
  • Ryan, Mary
  • Conneely, Ricky
  • Gillespie, Patrick
  • Vrolijk, Hans

Abstract

The measurement of farm economic sustainability has received intermittent academic interest in recent times, while the conceptual discussions are often quite limited. Moreover, this concept receives more attention at periods of difficulty for the sector. The measurement of farm viability is an important precondition to enrich these discussions. Therefore, it is necessary to develop more comprehensive and detailed measurement techniques to provide more clarity on viability and vulnerability levels in the sector. This paper refocuses attention on this issue, using a pilot dataset collected at farm level across a range of EU Member States which facilitates the assessment of an additional category of viability, namely that of economically sustainable farms, i.e. farms that are economically vulnerable but which are deemed sustainable by the presence of off-farm income. Differences in viability and economic sustainability across the eight surveyed Member States are shown. The analysis is sensitive to the factors included in the measurement of viability as well as to the threshold income used to defi ne viability. Although this is a pilot study, it enhances our understanding of the factors affecting cross-country evaluation of viability and sustainability, and the policy instruments that could improve viability levels.

Suggested Citation

  • O'Donoghue, Cathal & Devisme, Simon & Ryan, Mary & Conneely, Ricky & Gillespie, Patrick & Vrolijk, Hans, 2016. "Farm economic sustainability in the European Union: A pilot study," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(3), pages 1-9, December.
    • Handle: RePEc:ags:stagec:252985
    DOI: 10.22004/ag.econ.252985
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    Cited by:

    1. Hans Vrolijk & Krijn Poppe, 2021. "Cost of Extending the Farm Accountancy Data Network to the Farm Sustainability Data Network: Empirical Evidence," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    2. Jacek Kulawik & Michał Soliwoda & Agnieszka Kurdyś-Kujawska & Justyna Herda-Kopańska & Cezary Klimkowski, 2023. "Cost of Energy Consumption and Return of Excise Tax on Motor Fuels vs. the Durability of Operations and Financial Sustainability in Polish Agriculture," Energies, MDPI, vol. 17(1), pages 1-22, December.
    3. Jindrich Spicka & Tomas Hlavsa & Katerina Soukupova & Marie Stolbova, 2019. "Approaches to estimation the farm-level economic viability and sustainability in agriculture: A literature review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(6), pages 289-297.
    4. Jindřich Špička, 2018. "How Do Agricultural Biogas Investments Affect Czech Farms?," Central European Business Review, Prague University of Economics and Business, vol. 2018(4), pages 34-60.
    5. Ogawa, Keishi & Garrod, Guy & Yagi, Hironori, 2023. "Sustainability strategies and stakeholder management for upland farming," Land Use Policy, Elsevier, vol. 131(C).
    6. Tumelo Francinah Ramukhithi & Khathutshelo Agree Nephawe & Takalani Judas Mpofu & Thomas Raphulu & Karen Munhuweyi & Fhulufhelo Vincent Ramukhithi & Bohani Mtileni, 2023. "An Assessment of Economic Sustainability and Efficiency in Small-Scale Broiler Farms in Limpopo Province: A Review," Sustainability, MDPI, vol. 15(3), pages 1-26, January.
    7. Jörg Rieger & Florian Freund & Frank Offermann & Inna Geibel & Alexander Gocht, 2023. "From fork to farm: Impacts of more sustainable diets in the EU‐27 on the agricultural sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 764-784, September.
    8. Adele Coppola & Mario Amato & Domenico Vistocco & Fabio Verneau, 2022. "Measuring the economic sustainability of Italian farms using FADN data," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(9), pages 327-337.
    9. Firdovsi Fikretzade & Hamza Khalilov & Ramil Huseyn, 2024. "Analyzing the affordable dimensions for restricting the division of agricultural land: The case of Azerbaijan," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 83-101.
    10. Sulewski, Piotr & Kłoczko-Gajewska, Anna, 2018. "Relations between agri-environmental, economic and social dimensions of farm sustainability," 166th Seminar, August 30-31, 2018, Galway, West of Ireland 276202, European Association of Agricultural Economists.
    11. Tomas Hlavsa & Jindrich Spicka & Marie Stolbova & Zuzana Hlouskova, 2020. "Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 193-202.
    12. Rūta Savickienė & Aistė Galnaitytė, 2024. "Unveiling Determinants of Successful Dairy Farm Performance from Dairy Exporting EU Countries," Agriculture, MDPI, vol. 14(7), pages 1-24, July.
    13. Jindřich Špička & Petr Dereník, 2021. "How opportunity costs change the view on the viability of farms? Empirical evidence from the EU," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(2), pages 41-50.
    14. Poczta-Wajda, Agnieszka, 2020. "Economic Viability Of Family Farms In Europe – A Literature Review," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(4).
    15. Karlsson, Johan O. & Robling, Helena & Cederberg, Christel & Spörndly, Rolf & Lindberg, Mikaela & Martiin, Carin & Ardfors, Elsa & Tidåker, Pernilla, 2023. "What can we learn from the past? Tracking sustainability indicators for the Swedish dairy sector over 30 years," Agricultural Systems, Elsevier, vol. 212(C).
    16. Kołoszycz, Ewa, 2020. "Economic Viability Of Dairy Farms In Selected European Union Countries," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(3).

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