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

Author

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  • 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
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    References listed on IDEAS

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    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(1), 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

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    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.

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    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

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