IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v66y2020i1id78-2019-agricecon.html
   My bibliography  Save this article

A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size

Author

Listed:
  • Filip Hampl

Abstract

Organic farming represents an environment-friendly alternative to conventional farming techniques. The aim of this paper is to assess whether there are differences in financial performance of the Czech agricultural enterprises as measured by financial analysis indicators in relation to the selected farming system (conventional vs. organic), the farm size (with respect to organic and conventional farms) and the interaction of these two factors in the period 2012-2016. A three-step approach including two-way multivariate analysis of variance (MANOVA), non-parametric two-way analysis of variance (ANOVA), specifically the Scheirer-Ray-Hare test, and post hoc Dunn's test has been employed. The data sample comprises of 172 conventional and 136 organic farms, divided into three size categories. The effect of the selected farming system is manifested in return on sales, cost ratios, and asset turnover ratio. The farm size affects return on assets, cost ratios, liquidity and debt. The interaction of the factors has only been detected as regards return on assets.

Suggested Citation

  • Filip Hampl, 2020. "A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 1-9.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:1:id:78-2019-agricecon
    DOI: 10.17221/78/2019-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/78/2019-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/78/2019-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/78/2019-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexander Zorn & Michele Esteves & Ivo Baur & Markus Lips, 2018. "Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    2. Martina Lori & Sarah Symnaczik & Paul Mäder & Gerlinde De Deyn & Andreas Gattinger, 2017. "Organic farming enhances soil microbial abundance and activity—A meta-analysis and meta-regression," PLOS ONE, Public Library of Science, vol. 12(7), pages 1-25, July.
    3. Urfi, Peter & Hoffmann, Andras & Kormosne-Koch, Krisztina, 2011. "The Comparative Cost and Profit Analysis of Organic and Conventional Farming," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 113(1), pages 1-20, March.
    4. Eva HYBLOVA & Roman SKALICKY, 2018. "Return on sales and wheat yields per hectare of European agricultural entities," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(10), pages 436-444.
    5. Filippo Sgroi & Matteo Candela & Anna Maria Di Trapani & Mario Foderà & Riccardo Squatrito & Riccardo Testa & Salvatore Tudisca, 2015. "Economic and Financial Comparison between Organic and Conventional Farming in Sicilian Lemon Orchards," Sustainability, MDPI, vol. 7(1), pages 1-15, January.
    6. McBride, William D. & Greene, Catherine R., 2009. "Characteristics, Costs, and Issues for Organic Dairy Farming," Economic Research Report 55952, United States Department of Agriculture, Economic Research Service.
    7. Offermann, Frank & Nieberg, Hiltrud & Zander, Katrin, 2009. "Dependency of organic farms on direct payments in selected EU member states: Today and tomorrow," Food Policy, Elsevier, vol. 34(3), pages 273-279, June.
    8. Markéta Šeligová, 2017. "The Effect of Selected Financial Indicators on Liquidity of Companies in Selected Sectors in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(6), pages 2095-2104.
    9. Nachtman, Grażyna, 2015. "Economic sustainability of organic farms in 2010-2013," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 235494, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    10. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    11. Matthias Koesling & Ola Flaten & Gudbrand Lien, 2008. "Factors influencing the conversion to organic farming in Norway," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 7(1/2), pages 78-95.
    12. Duffy, Michael, 2009. "Economies of Size in Production Agriculture," Staff General Research Papers Archive 31282, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michal Chocholousek & Zuzana Hlouskova & Tereza Simova & Jan Huml, 2021. "Agriculture farms product differentiation assessment in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 81-89.
    2. Aleksander Grzelak, 2022. "The income-assets relationship for farms operating under selected models in Poland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(2), pages 59-67.
    3. Jadwiga Bożek & Czesław Nowak & Monika Zioło, 2020. "Changes in agrarian structure in the EU during the period 2010-2016 in terms of typological groups of countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(7), pages 307-316.
    4. Lehenchuk, Serhii & Raboshuk, Alina & Zhyhlei, Iryna & Zakharov, Dmytro & Fedoryshyna, Lidiia, 2023. "Financial performance determinants of Ukrainian agricultural companies in the pre-war period," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irwa Issa & Ulrich Hamm, 2017. "Adoption of Organic Farming as an Opportunity for Syrian Farmers of Fresh Fruit and Vegetables: An Application of the Theory of Planned Behaviour and Structural Equation Modelling," Sustainability, MDPI, vol. 9(11), pages 1-22, November.
    2. Saem Lee & Trung Thanh Nguyen & Patrick Poppenborg & Hio-Jung Shin & Thomas Koellner, 2016. "Conventional, Partially Converted and Environmentally Friendly Farming in South Korea: Profitability and Factors Affecting Farmers’ Choice," Sustainability, MDPI, vol. 8(8), pages 1-18, July.
    3. Beatrice Dingha & Leah Sandler & Arnab Bhowmik & Clement Akotsen-Mensah & Louis Jackai & Kevin Gibson & Ronald Turco, 2019. "Industrial Hemp Knowledge and Interest among North Carolina Organic Farmers in the United States," Sustainability, MDPI, vol. 11(9), pages 1-17, May.
    4. Hermann, Daniel & Musshoff, Oliver & Agethen, Katrin, 2014. "I will never switch sides: an experimental approach to determine drivers for investment decisions of conventional and organic hog farmers," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183084, European Association of Agricultural Economists.
    5. Bang, Rasmus & Hansen, Bjørn Gunnar & Guajardo, Mario & Sommerseth, Jon Kristian & Flaten, Ola & Asheim, Leif Jarle, 2024. "Conventional or organic cattle farming? Trade-offs between crop yield, livestock capacity, organic premiums, and government payments," Agricultural Systems, Elsevier, vol. 218(C).
    6. Sean Clark, 2020. "Financial Viability of an On-Farm Processing and Retail Enterprise: A Case Study of Value-Added Agriculture in Rural Kentucky (USA)," Sustainability, MDPI, vol. 12(2), pages 1-16, January.
    7. Philippos Karipidis & Sotiria Karypidou, 2021. "Factors that Impact Farmers’ Organic Conversion Decisions," Sustainability, MDPI, vol. 13(9), pages 1-24, April.
    8. Heinrichs, J. & Kuhn, T. & Pahmeyer, C. & Britz, W., 2021. "Economic effects of plot sizes and farm-plot distances in organic and conventional farming systems: A farm-level analysis for Germany," Agricultural Systems, Elsevier, vol. 187(C).
    9. Josef KRAUSE & Ondrej MACHEK, 2018. "A comparative analysis of organic and conventional farmers in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(1), pages 1-8.
    10. Waripas Jiumpanyarach, 2021. "Organic Agriculture: Farmers Perception and Adaptation in Northern Thailand," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(3), pages 245-254, September.
    11. Gillespie, Jeffrey & Nehring, Richard, 2013. "Comparing economic performance of organic and conventional U.S. beef farms using matching samples," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 1-15.
    12. Attitudes & Perceived behavior & Costs of production & Conventional agriculture & Organic agriculture & Farmers’ decision & Farm practices, 2021. "Organic Agriculture: Farmers' Perception and Adaptation in Northern Thailand," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 11(03), January.
    13. Nguyen Khanh Doanh & Nguyen Thi Thu Thuong & Yoon Heo, 2018. "Impact of Conversion to Organic Tea Cultivation on Household Income in the Mountainous Areas of Northern Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    14. Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    15. Cuong Le Van & Nguyen To The, 2019. "Farmers’ adoption of organic production," Asia-Pacific Journal of Regional Science, Springer, vol. 3(1), pages 33-59, February.
    16. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    17. Sardaro, Ruggiero & Bozzo, Francesco & Petrillo, Francesco & Fucilli, Vincenzo, 2017. "Measuring the financial sustainability of vine landraces for better conservation programmes of Mediterranean agro-biodiversity," Land Use Policy, Elsevier, vol. 68(C), pages 160-167.
    18. Shami, Labib & Lazebnik, Teddy, 2022. "Economic aspects of the detection of new strains in a multi-strain epidemiological–mathematical model," Chaos, Solitons & Fractals, Elsevier, vol. 165(P2).
    19. Atanu Mukherjee & Emmanuel C. Omondi & Paul R. Hepperly & Rita Seidel & Wade P. Heller, 2020. "Impacts of Organic and Conventional Management on the Nutritional Level of Vegetables," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    20. Anaka Aiyar & Prabhu Pingali, 2020. "Pandemics and food systems - towards a proactive food safety approach to disease prevention & management," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 749-756, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:66:y:2020:i:1:id:78-2019-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.