What is it about?
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. 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.
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Why is it important?
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.
Perspectives
The findings can be used to support the design of a new Common Agricultural Policy that emphasises smaller farms with livestock production that are in ANCs.
Dr Jindřich Špička
University of Economics, Prague
Read the Original
This page is a summary of: Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints, Agricultural Economics (Zemědělská ekonomika), May 2020, Czech Academy of Agricultural Sciences,
DOI: 10.17221/327/2019-agricecon.
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