Agric. Econ. - Czech, 2024, 70(9):436-445 | DOI: 10.17221/51/2024-AGRICECON

Land productivity in the EU in the context of financial support through direct subsidiesOriginal Paper

Barbara Kutkowska ORCID...1, Tomasz Szuk ORCID...1, Stanislaw Minta ORCID...1, Hanna Adamska ORCID...1
1 Department of Applied Economics, Faculty of Life Sciences and Technology, Wroclaw University of Environmental and Life Sciences (UPWR), Wroclaw, Poland

The main research objective of this study is to present the dynamics of land productivity changes in EU agriculture in the years 2012–2020 and evaluate the influence of direct subsidies received by farmers on land productivity. The source data for 2012–2020 are secondary and come from Eurostat. The research results were prepared for the entire European Union (EU-28), and divided into ‘old’ countries (EU-15) and ‘new’ countries (EU-13). The results were developed using the method of assessing convergence (in terms of differences in land productivity in individual countries) using the coefficient of variation and the relative index of changes in individual Member States in relation to the EU average over the period under study. Results showed that between 2012 and 2020, average land productivity in the EU increased by 7%. At the same time, differences in land productivity between EU countries decreased. The correlation analysis confirmed a statistically significant relationship between land productivity and the amount of direct payments per ha of agricultural land. Additionally, results of the correlation between productivity per 1 ha and the total area of agricultural land in EU countries confirmed the law of decreasing marginal productivity of land.

Keywords: agricultural payments; convergence; efficiency; financial resources

Received: February 12, 2024; Revised: August 6, 2024; Accepted: September 3, 2024; Published: September 27, 2024  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Kutkowska B, Szuk T, Minta S, Adamska H. Land productivity in the EU in the context of financial support through direct subsidies. Agric. Econ. - Czech. 2024;70(9):436-445. doi: 10.17221/51/2024-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. Barro R.J., Sala-i-Martin X. (1992): Convergence. Journal of Political Economy, 100: 223-251. Go to original source...
    2. Bezat-Jarzębowska A., Rembisz W. (2016): Productivity of the land factor and its resource (Produktywność czynnika ziemia a jego zasób). Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 16: 9-18. (in Polish) Go to original source...
    3. Bocian M., Osuch D., Smolik A. (2023): Parametry techniczno-ekonomiczne według grup gospodarstw rolnych uczestniczących w Polskim FADN w 2021 roku. (Technical and economic parameters by groups of agricultural holdings participating in Polish Farm Accountancy Data Network in 2021). Available at https://fadn.pl/wp-content/uploads/2023/06/PTE_2021.pdf (accessed Oct 17, 2023; in Polish)
    4. Bruno E., Castellano R., Punzo G., Salvati L. (2023): Towards diverging land prices in agricultural districts? Evidence from Italy before and after the great crisis. Agricultural Economics - Czech, 69: 119-127. Go to original source...
    5. Coelli T.J., Rao D.S.P., O'Donell C.J., Battese G.E. (2005): An Introduction to Efficiency and Productivity Analysis. 2nd Ed. New York, Springer: 349.
    6. Cechura L., Kroupova Z., Rudinskaya T. (2015): Factors determining TFP changes in Czech agriculture. Agricultural Economics - Czech, 61: 543-551. Go to original source...
    7. Čechura L., Žáková Kroupová Z., Lekešová M. (2022): Productivity and efficiency in Czech agriculture: Does farm size matter? Agricultural Economics - Czech, 68: 1-10. Go to original source...
    8. European Commission (2009): European Competitiveness Report 2008. European Commission. Enterprise and Industry. Available at https://ec.Europa.eu/docsroom/documents/3399/attachments/1/translations/en/renditions/native (accessed Oct 17, 2023).
    9. Eurostat (2022a): Economic accounts for agriculture - values at constant prices (2010 = 100). Data Browser, Eurostat. Available at https://ec.europa.eu/eurostat/databrowser/view/aact_eaa07/default/table?lang=en&category=agr.aact.aact_eaa (accessed Sept 29, 2022)
    10. Eurostat (2022b): Utilised agricultural area by categories. Data Browser, Eurostat. Available at https://ec.europa.eu/eurostat/databrowser/view/tag00025__custom_12960035/default/table?lang=en (accessed Oct 3, 2022)
    11. Golas Z. (2019): Convergence of labour productivity in agriculture of the European Union. Problems of Agricultural Economics, 358: 22-43. Go to original source...
    12. Grau A., Odening M., Ritter M. (2020): Land price diffusion across borders - The case of Germany. Applied Economics, 52: 5446-5463. Go to original source...
    13. KOWR (2020): Polish Rural Areas and Agriculture 2020 (Polska Wieś i Rolnictwo 2020. Analizy, Badanie Polska Wieś i Rolnictwo - Materiały). Krajowy Ośrodek Wsparcia Rolnictwa (National Support Centre for Agriculture), Poland, Warsaw. Available at https://www.gov.pl/web/kowr/badanie-polska-wies-i-rolnictwo (accessed Oct 10, 2023; in Polish)
    14. Kulikowski R. (2013): Production and commoditization of Agriculture in Poland. Transformations and spatial diversification after World War II (Produkcja i towarowość rolnictwa w Polsce. Przemiany i zróżnicowania przestrzenne po II wojnie światowej). Warsaw, Prace Geograficzne: 241. (in Polish)
    15. Kutkowska B., Berbeka T., Pilawka T. (2015): Impact of common agricultural policy instruments on the economic situation of farms in the opinion of farmers (Wpływ instrumentów wspólnej polityki rolnej na sytuację ekonomiczną gospodarstw rolnych w opinii rolników). Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, 17: 243-248. (in Polish)
    16. Lazikova J., Takac I., Schwarcz P., Bandlerova A. (2015): Agricultural land market in Slovakia - economic and legal impacts of the Law No. 140/2014 Coll. on the land acquisition. Agricultural Economics - Czech, 61: 367-376. Go to original source...
    17. Latruffe L. (2010): Competitiveness. Productivity and Efficiency in the Agricultural and Agrifood Sectors. Paris, OECD Publishing: 63.
    18. Marks-Bielska R. (2010): Agricultural Land Market in Poland - Determinants and Development Trends (Rynek ziemi rolniczej w Polsce - uwarunkowania i tendencje rozwoju). Olsztyn, Wydawnictwo Uniwersytetu Warmińsko-Mazurskiego w Olsztynie: 286. (in Polish)
    19. Marks-Bielska R., Babuchowska K. (2010): Functioning of the direct subsidies system in Poland and other European Union countries. Journal of Agribusiness and Rural Development, 17: 89-100.
    20. Nowak A. (2022): Diversification in labor productivity of agricultural holdings in the European Union Member States (Zróżnicowanie produktywności pracy gospodarstw rolnych w krajach członkowskich Unii Europejskiej). Przegląd Prawno-Ekonomiczny, 1: 97-110. (in Polish) Go to original source...
    21. Poczta W., Czubak W., Pawlak K. (2009): Changes in production volume and agricultural income (Zmiany w wolumenie produkcji i dochodach rolniczych). Zagadnienia Ekonomiki Rolnej, 4: 40-53.
    22. Rizov M., Pokrivcak J., Ciacian P. (2013): CAP subsidies and productivity of the EU farms. Journal of Agricultural Economics, 64: 537-557. Go to original source...
    23. Sala-i-Martin X. (1996): The classical approach to convergence analysis. The Economic Journal, 106: 1019-1036. Go to original source...
    24. Smędzik-Ambroży K., Rutkowska M., Kirbas H. (2019): Productivity of the Polish agricultural sector compared to European Union member states in 2004-2017 based on FADN farms. Annals of the Polish Association of Agricultural and Agribusiness Economists, 21: 422-431. Go to original source...
    25. Takayama T., Hashizume N., Nakatani T. (2020): Impact of direct payments on agricultural land use in less-favoured areas: Evidence from Japan. European Review of Agricultural, 47: 157-177. Go to original source...
    26. Tarnowska A. (2014): Productivity of the selected production factors in agriculture of the European Union countries in 2005-2013 (Produktywność wybranych czynników wytwórczych w rolnictwie krajów Unii Europejskiej w latach 2005-2013). Roczniki Naukowe (Scientific Annals) SERiA, 16: 214-219. (in Polish)
    27. Tomal M., Gumieniak A. (2020): Agricultural land price convergence: Evidence from Polish provinces. Agriculture, 10: 183. Go to original source...
    28. Wicki L. (2016): Changes in factor productivity in Polish agriculture (Zmiany produktywności czynników wytwórczych w polskim rolnictwie). Ekonomika i Organizacja Gospodarki Żywnościowej, Zeszyty Naukowe SGGW w Warszawie, 116: 149-160. (in Polish) Go to original source...
    29. Wilkin J. (2014): Agricultural land - a multifunctional asset (Ziemia rolnicza - dobro wielofunkcyjne). Wieś i Rolnictwo, 1: 113-121. (in Polish) Go to original source...
    30. Žáková Kroupová Z., Čechura L., Opatrný M., Hloušková Z., Mlezivová I. (2023): Assessment of the impact of agricultural support on crop diversity. Agricultural Economics - Czech, 69: 89-100. 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