Agric. Econ. - Czech, 2018, 64(10):436-444 | DOI: 10.17221/209/2017-AGRICECON

Return on sales and wheat yields per hectare of European agricultural entitiesOriginal Paper

Eva HYBLOVA*, Roman SKALICKY
Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic

Performance of agricultural entities can be observed from several different perspectives: using macroeconomic indicators, the quantity of agricultural production units, or by measuring the profitability. The paper present focuses on the relationship between profitability, return on sales (ROS) and wheat yields per hectare in agricultural entities in member states of the European Union (EU), divided into size categories by quantity standard output (SO). Due to the high proportion of subsidies in agriculture, the ROS indicator was rated in two versions: including subsidies and excluding subsidies. The aim of the paper is to confirm or refute the mutual relationship between these indicators, i.e. wheat yields per hectare, return on sales, and the size of the farm. The comparison is performed by means of indicators of descriptive statistics and tests of mathematical statistics. The results of the research show that return on sales drops with the size of the farm, while yields per hectare grow.

Keywords: agricultural entities, agricultural production, performance, profitability, return on sales

Published: October 31, 2018  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
HYBLOVA E, SKALICKY R. Return on sales and wheat yields per hectare of European agricultural entities. Agric. Econ. - Czech. 2018;64(10):436-444. doi: 10.17221/209/2017-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Bijman J., Iliopoulos C., Poppe K.J., Gijselinckx C., Hagedorn K., Hanisch M., Hendrikse G.W.J., Kühl R., Ollila P., Pyykkönen P., van der Sangen G. (2012): Support for Farmers' Cooperatives Final Report European Commission. "Support for Farmers' Cooperatives (SFC)". Available at http://ec.europa.eu/agriculture/externalstudies/2012/support-farmers-coop/fulltext_en.pdf (accessed June 26, 2017).
    2. Bohusova H., Svoboda P., Nerudova D. (2012): Biological assets reporting: Is the increase in value caused by the biological transformation revenue? Agricultural Economics - Czech, 58: 520-532. Go to original source...
    3. Brierley J.A. (2016): An examination of the use of profitability analysis in manufacturing industry. International Journal of Accounting, Auditing and Performance Evaluation, 12: 85-102. Go to original source...
    4. Cîrciumaru D., Siminica M., Marcu N. (2010): A study on the return on equity for the Romania industrial companies. Annals of the University of Craiova, Economic Sciences Series, 2: 1-8.
    5. Cornia G.A. (1985): Farm size, land yields and the agricultural production function. World Development, 13: 513-534. Go to original source...
    6. Chrastinová Z. (2008): Economic differentiation in Slovak agriculture. Agricultural Economics - Czech, 54: 536-545. Go to original source...
    7. Cucchiella F., D'Adamo I., Gastaldi M. (2015): Financial analysis for investment and policy decisions in the renewable energy sector. Clean Technologies, 17: 887-904. Go to original source...
    8. Eurostat (2016): National accounts and GDP. Available at http://ec.europa.eu/eurostat/statistics-explained/index.php/National_accounts_and_GDP/ (accessed June 26, 2017).
    9. Farm Accountancy Data Network Database (FADN) (2016): Available at http://ec.europa.eu/agriculture/rica/database/database_en.cfm (accessed May 20, 2017).
    10. Golas Z. (2016): The level and determinants of work profitability changes in the Czech and Polish agricultural sector in the years 2004-2014. Agricultural Economics - Czech, 62: 334-344. Go to original source...
    11. Institute of Agricultural Economics of the Czech Republic (2016): Zpráva o stavu zemědělství ČR za rok 2015. Available at http://www.uzei.cz/data/usr_001_cz_soubory/zzza2015vlada.pdf (accessed Apr 15, 2017).
    12. Jedruchniewicz A., Danilowska A. (2016): Accuracy of economic situation projections in the Polish agriculture. Economic Science for Rural Development Conference Proceedings, 42: 228-234.
    13. Miklovičová J., Gurčík L. (2009): The profit and added value creation and development analysis of agricultural companies in selected regions in Slovakia. Agricultural Economics - Czech, 55: 392-399. Go to original source...
    14. Mishra A.K., Moss Ch.B., Erickson K.W. (2009): Regional differences in agricultural profitability, government payments, and farmland values: Implications of DuPont expansion. Agricultural Finance Review, 69: 49-66. Go to original source...
    15. Pasekova M. (2005): Mikroekonomicke aspekty hospodareni malych a strednich podniku. E&M Economics and Management, 8: 6-12.
    16. Sarris A.H., Doucha T., Mathijs E. (1999): Agricultural restructuring in Central and Eastern Europe: implications for competitiveness and rural development. European Review of Agricultural Economics, 26: 305-329. Go to original source...
    17. Sedláček J. (2010): The methods of valuation in agricultural accounting. Agricultural Economics - Czech, 56: 59-66. Go to original source...
    18. Svoboda J., Novotná M. (2011): Multifactor productivity analysis in the sample of agricultural enterprises. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, LIX, 7: 395-402. Go to original source...
    19. Szymanska E.J. (2015): Profitability of pig farms in Poland after integration to the EU. Economic Science for Rural Development Conference Proceedings, 39: 97-107.
    20. Taeger D., Kuhnt S. (2014): Statistical Hypothesis Testing with SAS and R. John Wiley & Sons, Ltd., Chichester. Go to original source...
    21. Věžník A., Svobodová H., Némethová J., Hradický J. (2017): Livestock production in Czechia and Slovakia, ten years beyond EU accession. Human Geographies - Journal of Studies, 1: 77-93. Go to original source...
    22. Vuckovic B., Veselinovic B., Drobnjakovic M. (2016): Analysis of profitability of selected agricultural enterprises in the Autonomous Province of Vojvodina, Republic of Serbia. Actual Problems of Economics, 176: 147-159.
    23. Záhorský T., Pokrivčák J. (2017): Assessment of the agricultural performance in Central and Eastern European countries. Agris on-line Papers in Economics, 9: 113-123. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content