Search Results (68)

The primary objective of this study was to present and assess the effects of direct payments and other subsidies targeted at dairy farms under the EU’s Common Agricultural Policy (CAP) guidelines implemented in 2014–2023 on their financial performance and changes in equity. To narrow the focus on the research problem, the scope of the analysis was limited to dairy farms from the five EU countries with the highest milk production. To achieve this objective, the study employed economic measures and indicators used to evaluate the resources and outcomes of agricultural activity. The empirical material used in the analysis consisted of farm-level accounting data collected within the European Farm Accountancy Data Network (FADN). The results indicate that direct payments and other subsidies had a very substantial impact on farm income in the analysed countries. The average share of direct payments in dairy farm income in 2014–2023 in the five analysed EU countries ranged from 19.7% in Italy to 88.4% in France. Without direct payments, the average dairy farm would have incurred financial losses from its activity during periods of unfavourable economic conditions on the milk market. The new model for distributing direct payments and other subsidies introduced in 2023, whose main modification compared with the previous system was a stronger alignment of direct payments with environmental objectives, did not result in substantial changes in either the level of payments or their impact on dairy farms’ financial performance. In 2023, the average payment per hectare of agricultural land in the analysed farms amounted to EUR 461.34, which was EUR 19.88 less than in 2022. Full article

The growth of the Italian craft beer sector has renewed interest in domestic hop cultivation, presenting a promising opportunity for farm diversification, despite challenges such as structural fragmentation and limited economic data. The study examines the structural and economic characteristics of Italian hop farms using harmonised microdata from the Farm Accountancy Data Network (FADN) for the years 2021 to 2023. The sample includes 13 farms (selected from an initial sample of 14 after outlier detection) with 32 validated farm-year observations, representing approximately 19% of Italy’s total hop-growing area. A multivariate analysis—combining Principal Component Analysis (PCA) and fuzzy C-means clustering—was performed using five key economic indicators: gross margin (GM), variable costs (VCs), hop production (Q_HOP), specialisation ratio (SH), and the coefficient of variation in the gross margin (GM_cv) as a proxy for income stability. The results identify three distinct farm profiles: (i) resilient specialised farms with high margins but significant income volatility; (ii) intermediate emerging farms; and (iii) diversified units where hops represent a secondary crop. The findings of this study provide an in-depth understanding of the economic strategies underpinning hop cultivation in Italy, which may be of interest to all organisations where hops are grown as an alternative crop. They offer concrete guidelines to policymakers to support the sector’s development through targeted measures that address issues relating to farm size, technical capabilities, and supply chain integration. Full article

The Common Agricultural Policy (CAP), as one of the most prominent European Union policies, has increased concerns about the environmental sustainability of farms, particularly since its major reform in 1992. The changes implemented since this reform have intended to promote more integrated rural development, with deeper interrelationships between the agricultural sector and other rural activities, including agritourism, from the perspective of diversification of the activities that can be developed on farms and in rural areas. The idea of this strategy is to bring more income for farmers by changing the policy measures and enhancing a more sustainable agricultural and rural development. Nonetheless, the interrelationships between the diversification of activities in the agricultural sector and the characteristics of the farms have not yet been fully explored. In this context, this research aims to bring more insight into how agritourism revenues can be predicted by the farm characteristics in the European Union (UE) agricultural regions, considering data from FADN (Farm Accountancy Data Network), for 2023, using machine learning algorithms (following IBM SPSS Modeler Version 18.4 procedures). The results obtained show that agritourism output is higher in EU countries with larger farms (Slovakia and Czechia) and that are more economically dynamic (Netherlands and Denmark). Slovenia, Austria, Italy, and Finland are countries in which farms have a higher part of agritourism revenues in the total output. There is space to better explore agritourism potentialities and to improve the availability of data. When the total crop output increases by 1%, agritourism revenue grows by 0.719%. Full article

Agriculture in Bulgaria faces increasing pressure to balance profitability with environmental sustainability under the evolving framework of the Common Agricultural Policy (CAP) and the European Green Deal. This study analyses the relationship between sustainability-oriented investment support, production cost structure, and farm profitability using farm-level data from the Farm Accountancy Data Network (FADN). The analysis integrates investment-related subsidies, input intensity, productivity indicators, and structural characteristics into an econometric framework to examine their associations with economic performance. Results show that environmental payments, when aligned with efficient management, enhance profitability, whereas conventional investment and rural development support display limited or delayed effects. Higher crop protection expenditure is associated with lower profitability, suggesting cost inefficiencies in chemically intensive production systems. In contrast, fertiliser expenditure shows no significant association, while energy-related spending exhibits a positive but statistically insignificant relationship, likely reflecting mechanisation and technological modernisation effects. Structural factors, particularly farm size and land productivity, remain key determinants of profitability for balancing economic and environmental goals. Overall, the findings suggest that sustainable profitability in Bulgarian agriculture is achievable but unevenly distributed, shaped by structural conditions, managerial capacity, and the design of support instruments. The study offers empirical evidence for aligning sustainable investment incentives with farm-level competitiveness and supports the transition toward integrated economic-environmental monitoring within the forthcoming Farm Sustainability Data Network (FSDN). Full article

The study analyzes agricultural labour productivity in the context of the economic dimension of sustainability and the idea of European Union (EU) cohesion. This idea constitutes a central principle of European integration. The basis for implementing the concept of cohesion in European agriculture is the convergence of labour productivity levels. Convergence in this area forms the foundation of economic sustainability and serves as a prerequisite for the social dimension of sustainability, while often also being an underlying factor in environmental sustainability. The analysis concerns the productivity of labour in farms by the economic size, both at the national and regional levels, based on Farm Accountancy Data Network (FADN) data for the years 2007–2022. The β and σ-convergence methods were used. The results indicate that processes of labour productivity convergence occur in EU agriculture. This phenomenon was manifested by a decline in the heterogeneity of labour productivity levels among agricultural holdings. The fastest reduction in regional diversity was observed among the group of the largest economically farms (GE6). However, the dispersion of labour productivity levels remains considerable, and the rate of convergence continues to be slow. The convergence of labour productivity in agriculture will not accelerate without widespread and comprehensive structural changes in the sector, extending beyond mere changes in land use patterns. Full article

The article analyses the direction and intensity of changes occurring in agriculture in mountain areas in Europe between 2000 and 2022. For the calculations, the ESA CCI Land Cover global land-use map set was used. This dataset was established by the European Space Agency (ESA) through the classification of satellite images from sources (MERIS, AVHRR, SPOT, PROBA, and Sentinel-3). In the next step, the organisational features and economic performance of farms located in mountain areas of the European Union were determined for the period 2004–2022. For this purpose, data from the European Farms Accountancy Data Network (FADN-FSDN) were used. Subsequently, using Poland as a case study, the capacity of mountain agriculture to implement key environmental interventions under the Common Agricultural Policy (CAP) 2023–2027 was assessed. The results highlight the varying directions and intensity of organisational changes occurring in mountain agriculture across Europe. They also show that farms can operate successfully in these areas, although their economic situation varies between EU countries. The findings indicate the need for further adaptation of CAP instruments to better reflect the ecological and economic conditions of mountain areas. Strengthening support mechanisms for these regions within the current and future CAP is of crucial importance for protecting biodiversity, promoting sustainable land use, and maintaining the socio-environmental functions of rural mountain landscapes. Our study highlights that the CAP for mountain farms should be targeted, long-term, and compensatory, so as to compensate for the naturally unfavorable farming conditions and support their multifunctional role. The most important assumptions of CAP for mountain farms are a fair system of compensatory payments (LFA/ANCs), support for local and high-quality production, income diversification, and investments adapted to mountain conditions. Full article

The transition toward sustainable and circular agricultural systems is increasingly important, yet evidence linking circularity and farm profitability in transition economies remains limited. This study examines the determinants of farm profitability in Serbia by combining micro-level structural and productivity indicators with a macro-level agro-eco efficiency measure, used here as a sector-wide ecological pressure indicator rather than a direct proxy for circular practices. Using a balanced Farm Accountancy Data Network (FADN) panel of 443 farms (2015–2022) across dairy, mixed, field crop, and fruit & wine sectors, dynamic panel estimators (difference and system Generalized Method of Moments-GMM) reveal strong sectoral heterogeneity. Asset turnover is the primary driver of profitability in field crops and perennial systems, while dairy farms benefit from scale and land productivity. Energy intensity consistently reduces profitability across all sectors. Agro-eco efficiency shows a negative effect in livestock-based systems, indicating higher sensitivity to macro-ecological pressures. These findings suggest that environmental and economic vulnerabilities differ across production systems, highlighting the need for sector-specific strategies aimed at improving resilience rather than inferring the profitability of circular technologies. Full article

The objective of this paper is to describe the process of transition from the Farm Accountancy Data Network (FADN) to the Farm Sustainability Data Network (FSDN), a European survey that gathers yearly data about agricultural holdings at microeconomic level. Established initially to monitor economic aspects of farm income and support Common Agricultural Policy (CAP) evaluations, the network has now broadened its scope to integrate environmental and social aspects of farm management, in line with the EU Green Deal and the Farm to Fork strategy. The Implementing Regulation (EU) 2023/2674 formalizes this integration, adding new variables, encouraging the participation of the farms (voluntary), and supporting the improvement in interoperability to reduce the statistical burden on farmers and data collectors. The paper discusses the main challenges and opportunities of this transition, emphasizing how FSDN will deliver a more comprehensive and reliable dataset for policy evaluation and for advancing the understanding of farm-level sustainability. Full article

Within the energy system, agriculture represents a distinct sector, as it functions both as a consumer of energy derived from fossil fuels and renewable sources and as a producer of renewable energy. Since energy consumption is closely linked to production intensity and cost efficiency, energy costs have a direct impact on farm profitability and financial stability. The aim of the study is to analyze and assess the relationships between energy costs and the financial situation of farms in Poland in comparison to the European Union average, based on data from the Farm Accountancy Data Network (FADN) and its successor, the Farm Sustainability Data Network (FSDN), covering the years 2014–2023. The study focuses on differences in the structure and burden of energy costs and their implications for the economic performance and financial resilience of agricultural holdings. The comparative analysis revealed that farms in Poland are characterized by a higher share of energy costs in total production costs and a higher ratio of energy costs to total income compared to the EU average, indicating lower financial resilience to energy price volatility. These findings suggest that measures aimed at improving energy efficiency, supporting technological modernization, and encouraging the adoption of on-farm renewable energy could strengthen the long-term stability and competitiveness of Polish agriculture. Full article

The concept of sustainable development has been widely analyzed in scientific literature and is understood as a process aimed at balancing human activities with the environment. Sustainable agricultural systems generate economic value, manage natural resources responsibly, and support rural development. Modern agricultural production, however, faces challenges across these dimensions, making their assessment essential for the long-term viability of farms. This paper introduces indicators of economic, ecological, and social sustainability for agricultural holdings, using the FADN (Farm Accountancy Data Network) database as a foundation. The structured nature of FADN allows for consistent analysis of sustainability, while additional indicators assess the impact of agricultural policy on farm performance. Together, these provide a comprehensive framework for understanding and improving farm sustainability. The main contribution of the study is the establishment of a set of feasible indicators that can be derived from the FADN database to support comprehensive sustainability assessments. Full article

Developments in agriculture is reshaping the agribusiness landscape, altering farms’ bargaining power and strategic positioning within supply chains. These dynamics raise important questions about how financial strength influences farmers’ preferences for different components of business relationships with input suppliers. The primary objective of this study is to examine the relationship between a farm’s financial power and the importance it assigns to the behavioral dimension in such relationships. To address this objective, we employ a two-stage research design. In the first stage, qualitative interviews with farmers were conducted to identify the key attributes contributing to relationship value, encompassing economic, strategic, and behavioral dimensions. In the second stage, a quantitative survey was administered to 249 farmers, supplemented with financial data from the Farm Accountancy Data Network (FADN). The Maximum Difference Scaling (MaxDiff) method was applied to assess the relative importance of these attributes, followed by statistical analysis linking the observed preferences to a composite indicator of financial power. The results indicate that financially stronger farms place greater emphasis on economic factors while attaching less importance to behavioral aspects. Among less financially powerful farms, two distinct patterns emerge: one characterized by opportunistic, price-oriented behavior, and another reflecting a relational orientation that values trust, communication, and long-term cooperation alongside economic conditions. These findings contribute to a better understanding of business relationships in agribusiness by explaining how financial power shapes the trade-off between economic and behavioral components. Full article

This paper examines the farming systems and operational structures in the Region of Western Macedonia (RWM), Greece and constructs a typology of farms based on structural, operational, and socio-economic characteristics. Agriculture remains a vital pillar of the regional economy, particularly in the context of RWM’s ongoing transition to a post-lignite development model. Using farm-level data from the 2018 Farm Accountancy Data Network (FADN), Principal Component Analysis (PCA) identified four latent dimensions of farm heterogeneity—income and productivity, asset base, land size, and labour structure. Hierarchical and K-means cluster analysis revealed three distinct farm types: (1) medium-sized, high-efficiency farms with moderate reliance on subsidies (30% of the sample); (2) small-scale, family farms with modest productivity and limited capitalisation (48%); and (3) large, asset-rich farms exhibiting structural inefficiencies and lower output per hectare (22%). These findings highlight structural vulnerabilities, particularly the predominance of undercapitalised smallholdings, and provide a data-driven foundation for Thdesigning differentiated policies that support farm resilience, generational renewal, and sustainable rural development. Full article

Climate change is one of the most important environmental problems of the modern world. Without an effective solution to this problem, it is not possible to implement sustainable development. For this reason, in the European development strategies, including the European Green Deal (EGD), the reduction in greenhouse gas (GHG) emissions is one of the priorities. This also applies to sectoral strategies, including those related to agriculture. In this context, the monitoring of changes in GHG emissions becomes particularly important, and its key condition is an applicative estimation method, adapted to the available data and levels of assessment (globally, country, sector, economic unit). GHG emission calculations at the level of the agricultural sector are officially estimated by the state and non-governmental organisations. However, calculations at the level of the agricultural unit-farm remain a challenge due to the lack of detailed data or its incomplete scope to estimate GHG emissions. The other issue is the necessity of a representative data nature, taking into consideration the different profiles of various farms. The research focused on presenting a methodological approach to utilising FADN (Farm Accountancy Data Network) data for estimating GHG emissions at the farm level. The Intergovernmental Panel on Climate Change (IPCC) methodology was adopted to use available farm-level data. Some assumptions were needed to achieve this goal. The article presents the subsequent stages of GHG calculation using the FADN data. The results reveal significant differences in GHG emissions among farm types. The presented results indicated the primary sources of emissions from agriculture, including energy (e.g., fuel and electricity consumption), thus outlining the scope of action that should be taken to reduce emissions effectively. The study confirms that the method used helps estimate emissions at the farm level. Its application can lead to better targeting of climate policy in agriculture. Full article

The ongoing climate crisis and growing water scarcity are exerting increasing pressure on agriculture in Southern and Western Europe, leading to reduced crop yields, greater risk of land abandonment, and deterioration of soil quality. Despite the extensive literature on irrigation and water use in agriculture, the specific relationship between irrigation availability and changes in the type of farming (ToF) remains insufficiently investigated. This study aims to address this gap by analyzing data from the 2010 and 2020 Italian General Agricultural Censuses conducted by ISTAT, in combination with microdata from the Italian Farm Accountancy Data Network (FADN), focusing on irrigated farms in Southern Italy. Descriptive analysis reveals that over 60% of irrigated farms specialize in permanent crops and predominantly adopt efficient irrigation systems such as drip irrigation. Between 2010 and 2020, approximately 23.8% of farms changed their ToF; however, these transitions were not generally associated with improvements in productivity or profitability. Results from logistic regression models suggest that structural variables—including Utilized Agricultural Area (UAA), economic size, and demographic characteristics such as the farmer’s gender—play a more significant role in determining changes in the ToF than the presence of irrigation itself. Moreover, the adoption of organic practices and larger farm sizes are positively associated with ToF changes. These findings suggest that while there has been some shift toward less water-demanding and potentially more sustainable crops, the impact of irrigation on such transitions remains limited. The results underscore the need for more targeted agricultural policies and improved data collection to support effective climate adaptation strategies in the sector. Full article

This research focuses on an interdisciplinary approach to the financial energy of farms, allowing it to be linked to the overall financial health of the entity, which is influenced by various factors, including the use of equity and debt capital, and the treatment of money as a source of energy. The data source for the analysis consisted of statistics from the Farm Accountancy Data Network (FADN). This study encompassed the average agricultural holdings in the European Union, as well as average farms classified by individual regions and economic size classes. This research covered both the European Union as a whole and individual regions within EU member states. The objective of this study is to assess the factors that determine the financial security of EU farms using factor analysis. The results of this research indicate that financial energy may be one of the main factors shaping the financial security of farms. This is particularly true for small farms, which, in line with the goals of sustainable development, should increase their income (financial energy). Full article