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The impact of producer organisations on farm performance: A case study of large farms in Slovakia

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  • Pokrivcak, J.
  • Michalek, J.
  • Ciaian, P.

Abstract

This paper estimates the farm level impact of producer organizations (PO) membership in Slovakia and the effectiveness of support provided to POs under the EU Rural Development Programme (RDP). We employ the PSM-DID econometric approach on a database of large Slovak commercial farms for 2006 and 2015. First, our results show that belonging to a PO improves the economic performance of farms in Slovakia. Second, in the short-run the support granted under RDP 2007-2013 to newly established PO does not improve the farm performance; only established and older POs (and potentially supported in the past) generate benefits to their members. Third, the estimates provide indirect evidence that the disbursement of PO support granted in the financial period 2007-2013 was rather ineffective in selecting POs with the highest potential to generate benefits to its members. Our analysis confirms that many POs were created for the sole purpose just to benefit from the support. This result is reinforced by the observed high closure rate of supported POs. Acknowledgement : The authors acknowledge the financial support from the Slovak Research and Development Agency (Grant No. APVV-16-0321) and the Czech Science Foundation (GACR) (Grant No. 16-02760S). The authors are solely responsible for the content of the paper. The views expressed are purely those of the authors and may not in any circumstances be regarded as stating an official position of the European Commission.

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  • Pokrivcak, J. & Michalek, J. & Ciaian, P., 2018. "The impact of producer organisations on farm performance: A case study of large farms in Slovakia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277485, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277485
    DOI: 10.22004/ag.econ.277485
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    Keywords

    Farm Management;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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