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The assessment of the economic risks level of sugar beet growing for the farm economy

Author

Listed:
  • Josef Pulkrábek

    (Faculty of Engineering, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • Miroslav Kavka

    (Faculty of Engineering, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • Vladimír Rataj

    (Slovak Agriculture University in Nitra, Nitra, Slovak Republic)

  • Jaroslav Humpál

    (Institute of Agriculture Economics and Information, Prague, Czech Republic)

  • Ladislav Nozdrovický

    (Slovak Agriculture University in Nitra, Nitra, Slovak Republic)

  • Zdeněk Trávníček

    (Institute of Agriculture Economics and Information, Prague, Czech Republic)

  • Vladimír Pačuta

    (Slovak Agriculture University in Nitra, Nitra, Slovak Republic)

Abstract

The risk rate of sugar beet growing was analyzed by using the algorithm for modelling and generating the random numbers based on the conditions determined in advance and the statistical distribution of sugar beets yield, the total costs, earnings and gross profit. On the bases of results of the analysis of economic risks of sugar beet production in years 1995-2009, it follows that the sugar beet growing in all regions is highly risky in the Czech Republic. The subsidy SAPS and TOP-UP per 1 hectare of sugar beet have a positive impact on its economics though not sufficient enough. In practice, it means that it is highly probable that the break-even point will not be achieved and thereby it is highly probable that the fixed costs are not covered and the update of machines is significantly limited. This happens mainly in the marginal regions. If the agricultural companies count on the separate sugar payment, the sugar beet growing is in all regions of the Czech Republic with acceptable risk.

Suggested Citation

  • Josef Pulkrábek & Miroslav Kavka & Vladimír Rataj & Jaroslav Humpál & Ladislav Nozdrovický & Zdeněk Trávníček & Vladimír Pačuta, 2012. "The assessment of the economic risks level of sugar beet growing for the farm economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(1), pages 41-48.
    • Handle: RePEc:caa:jnlage:v:58:y:2012:i:1:id:111-2010-agricecon
    DOI: 10.17221/111/2010-AGRICECON
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    References listed on IDEAS

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    1. P. Paudel & A. Matsuoka, 2009. "Cost efficiency estimates of maize production in Nepal: a case study of the Chitwan district," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(3), pages 139-148.
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    Cited by:

    1. Miroslav Mimra & Miroslav Kavka & František Kumhála, 2017. "Risk analysis of the business profitability in agricultural companies using combine harvesters," Research in Agricultural Engineering, Czech Academy of Agricultural Sciences, vol. 63(3), pages 99-105.

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