IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2010y2010i6id762p774-794.html
   My bibliography  Save this article

Analýza nástrojů zemědělské dotační politiky - aplikace produkčních funkcí
[Analysis of Agriculture Subsidy Policy Tools - Aplication of Production Function]

Author

Listed:
  • Zdeňka Kroupová
  • Michal Malý

Abstract

The submitted paper is focused on the evaluation of the Common Agriculture Policy impact on economic results of Czech organic farmers. The aim of the paper is a complex evaluation of the influence of subsidy on production, costs, profit and technical efficiency of organic farms. The partial aim is to evaluate different methods of subsidy rate calculation. The main methodological tool for achieving mentioned aims is an analysis using a production and a stochastic frontier production function. This approach has not been used in the Czech Republic yet. The previous studies, analyzed subsidy of organic farming, were based on a comparison of especially family farm income, profit or costs of organic and conventional farming. The analysis was conducted on the basis of unbalanced panel data from 143 organic and 388 conventional enterprises - legal entities, obtained over the time period 2004 - 2008. The sample of organic farms represents 58 % of the entire population of organic legal entities. Results of the analysis indicate negative impact of subsidies on production, profit and technical efficiency of organic farmers and refer to the reality that actual level of subsidy discourages organic farmers from rational behavior and implicates their dependence on state support.

Suggested Citation

  • Zdeňka Kroupová & Michal Malý, 2010. "Analýza nástrojů zemědělské dotační politiky - aplikace produkčních funkcí [Analysis of Agriculture Subsidy Policy Tools - Aplication of Production Function]," Politická ekonomie, Prague University of Economics and Business, vol. 2010(6), pages 774-794.
    • Handle: RePEc:prg:jnlpol:v:2010:y:2010:i:6:id:762:p:774-794
    DOI: 10.18267/j.polek.762
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.762.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.762.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.762?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. 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.
    2. Madau, Fabio A., 2007. "Technical Efficiency in Organic and Conventional Farming: Evidence from Italian Cereal Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(01), pages 1-17, January.
    3. Stolze, Matthias & Lampkin, Nicolas, 2009. "Policy for organic farming: Rationale and concepts," Food Policy, Elsevier, vol. 34(3), pages 237-244, June.
    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. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    2. Zdeňka Malá & Gabriela Červená & Michaela Antoušková, 2011. "Analysis of the impacts of Common Agricultural Policy on plant production in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 237-244.
    3. Vlašicová, Eliška & Náglová, Zdeňka, 2015. "Differences in the Economic Situation of Organic and Conventional Winemaking Enterprises," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(3), pages 1-9, September.

    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. Natalia Brzezina & Birgit Kopainsky & Erik Mathijs, 2016. "Can Organic Farming Reduce Vulnerabilities and Enhance the Resilience of the European Food System? A Critical Assessment Using System Dynamics Structural Thinking Tools," Sustainability, MDPI, vol. 8(10), pages 1-32, September.
    2. Breustedt, Gunnar & Latacz-Lohmann, Uwe & Tiedemann, Torben, 2011. "Organic or conventional? Optimal dairy farming technology under the EU milk quota system and organic subsidies," Food Policy, Elsevier, vol. 36(2), pages 223-229, April.
    3. Casolani, Nicola & Nissi, Eugenia & Giampaolo, Antonio & Liberatore, Lolita, 2021. "Evaluating the effects of European support measures for Italian organic farms," Land Use Policy, Elsevier, vol. 102(C).
    4. Brenes Muñoz, Thelma & Lakner, Sebastian & Brümmer, Bernhard, 2012. "Economic growth of farms: An empirical analysis on organic farming," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126756, International Association of Agricultural Economists.
    5. Władysława Łuczka & Sławomir Kalinowski & Nadiia Shmygol, 2021. "Organic Farming Support Policy in a Sustainable Development Context: A Polish Case Study," Energies, MDPI, vol. 14(14), pages 1-21, July.
    6. Natalia Brzezina & Katharina Biely & Ariella Helfgott & Birgit Kopainsky & Joost Vervoort & Erik Mathijs, 2017. "Development of Organic Farming in Europe at the Crossroads: Looking for the Way Forward through System Archetypes Lenses," Sustainability, MDPI, vol. 9(5), pages 1-23, May.
    7. Madau, Fabio A., 2015. "Technical and Scale Efficiency in the Italian Citrus Farming: Comparison between SFA and DEA Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), pages 1-13.
    8. Moritz Flubacher & George Sheldon & Adrian Müller, 2015. "Comparison of the Economic Performance between Organic and Conventional Dairy Farms in the Swiss Mountain Region Using Matching and Stochastic Frontier Analysis," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 7(1), pages 76-84.
    9. Bouali Guesmi & Teresa Serra & Amr Radwan & José María Gil, 2018. "Efficiency of Egyptian organic agriculture: A local maximum likelihood approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 441-455, March.
    10. Stefan Mann, 2016. "Governing complementary responsibility goods through hybrid systems in a globalizing world," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 9(1), pages 14-21.
    11. Verburg, René W. & Verberne, Emma & Negro, Simona O., 2022. "Accelerating the transition towards sustainable agriculture: The case of organic dairy farming in the Netherlands," Agricultural Systems, Elsevier, vol. 198(C).
    12. Phu Nguyen-Van & Nguyen To-The, 2016. "Technical efficiency and agricultural policy: evidence from the teaproduction in Vietnam," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(3), pages 173-184.
    13. Laure Latruffe & Céline Nauges, 2014. "Technical efficiency and conversion to organic farming: the case of France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(2), pages 227-253.
    14. Galluzzo Nicola, 2020. "A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis," European Countryside, Sciendo, vol. 12(4), pages 494-505, December.
    15. Bouali Guesmi & Teresa Serra, 2015. "Can We Improve Farm Performance? The Determinants of Farm Technical and Environmental Efficiency," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(4), pages 692-717.
    16. Milford, Anna & Lien, Gudbrand & Reed, Matthew, 2021. "Different Sales Channels for Different Farmers: Local and Mainstream Marketing of Organic Fruits and Vegetables in Norway," 2021 Conference, August 17-31, 2021, Virtual 315058, International Association of Agricultural Economists.
    17. Charalampos Konstantinidis, 2018. "Capitalism in Green Disguise: The Political Economy of Organic Farming in the European Union," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(4), pages 830-852, December.
    18. Hanna Lindström, 2022. "The Swedish consumer market for organic and conventional milk: A demand system analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 505-532, July.
    19. Rees, Charles & Grovermann, Christian & Finger, Robert, 2023. "National organic action plans and organic farmland area growth in Europe," Food Policy, Elsevier, vol. 121(C).
    20. F. Střeleček & Daniel Kopta & Jana Lososová & Radek Zdeněk, 2012. "Economic results of agricultural enterprises in 2010," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 315-328.

    More about this item

    Keywords

    production function; profit; technical efficiency; Czech Republic; costs; panel data; subsidy;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    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:prg:jnlpol:v:2010:y:2010:i:6:id:762:p:774-794. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.