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Farm outcomes based on cluster analysis of compound farm evaluation

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  • Zuzana Hloušková
  • Michaela Lekešová

    (Liaison Agency FADN CZ, Institute of Agricultural Economics and Information, Prague, Czech Republic)

Abstract

The purpose of this paper is to examine the internal structure of Czech agricultural holdings based on a multicriteria evaluation of the five dimensions representing the main functions of agriculture including production, economicfactors, financial stability, environmental, and social and other factors. A cluster analysis was performed to identify two clusters of farms. The first cluster consists of smaller holdings that specialize in livestock production and achieve poorer financial results compared to the second cluster, which includes a larger share of large holdings that focus on crop production. The first cluster exhibited better performance as regards environmental protection and financial stability. In contrast, the second cluster achieved better scores regarding production and economic factors. However, an evaluation of all dimensions showed that the second cluster of farms obtained slightly better ratings (2.7% above the overall average) then the first cluster (3.1% below the overall average score). It is up to policy makers to decide which group of farmers, is more approaching the aim of the new agricultural policy. Policy makers can consider the results of this study to find the areas where the sustainability rate should be increased and purposefully promote that by specific measures to achieve balanced farming system.

Suggested Citation

  • Zuzana Hloušková & Michaela Lekešová, 2020. "Farm outcomes based on cluster analysis of compound farm evaluation," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(10), pages 435-443.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:10:id:273-2020-agricecon
    DOI: 10.17221/273/2020-AGRICECON
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    References listed on IDEAS

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