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Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints

Author

Listed:
  • Tomas Hlavsa
  • Jindrich Spicka

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

  • Marie Stolbova

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

  • Zuzana Hlouskova

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

Abstract

The redesign of the Common Agricultural Policy (CAP) allows for more room to address issues related to stabilising farmers' income and developing their viability in areas facing natural constraints (ANC). Maintaining income levels, developing farm economies in rural areas, and encouraging competitive agricultural practises are the challenges facing the new CAP. ANCs in the Czech Republic are characterised by a lower level of income compared to areas outside ANCs and their generally prevailing specialisation in livestock production, which has been facing a relatively turbulent development in the last decade. The main aim of this paper is to evaluate the economic viability with regard to the level of natural disadvantage and with regard to farm specialisation. The database of Farm Accountancy Data Network (FADN) was used for assessment; the authors built the Farm Economic Viability indicator, which is based on modified Farm Net Value Added. The differences between the farm groups were tested through analysis of variance. Significantly lower viability was found in ANCs compared to farms outside ANCs. Field crops achieved significantly higher levels, both in and outside ANCs. The most threatened group of farms are grazing livestock in ANCs.

Suggested Citation

  • 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.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:5:id:327-2019-agricecon
    DOI: 10.17221/327/2019-AGRICECON
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    References listed on IDEAS

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    1. 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.
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    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. Ivana Blažková & Veronika Svatošová & Gabriela Chmelíková & Vojtěch Tamáš & Eliška Svobodová & Libor Grega & Simona Miškolci & Jakub Piecuch & Apolka Ujj & Daniela Hupková & Jacek Puchała & István Baz, 2023. "The effects of COVID-19 crisis on small family farms: Empirical evidence from Visegrad countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(9), pages 366-374.

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