Modeling of the Connection Between the Ecological Farming and Farm Sizes under Hungarian Conditions

István Takács and Katalin Takács-György

No 6992, 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 from International Farm Management Association

Abstract: Nowadays, the spread of ecological farming occurs in an ever-accelerating rate in Europe. In the beginning of the 1990s, this process started in Hungary too. Primarily, horticultural bioproduct have appeared on the market; however, farms, which can be regarded as a sample, formed out relatively fast, and made products qualified as plough-land bulk goods, first of all for export, but a stratum in Hungary also starts to interest for these products. In our research, we looked for an answer to the question, how the economic condition system of ecological production forms out in Hungarian circumstances, on which farm sizes farming can be made profitably. We started by adapting the earlier model researches that current farm sizes in Hungary, are too small yet, so that one could make profitable production, at the same time, farmers, who affiliate in time, may reach extra sales revenues in comparison to the traditional (factory-) farming, by producing bio-products, which, however, can ensure the capacity of living of such farms, which were in unliveable under the earlier circumstances. Simultaneously with the spread of ecological farming, this advantage will decrease, therefore the time factor has an important role, at the same time, the capacity expansion not confirmed with consumers' demands, takes this income advantage away. Under Hungarian circumstances, according to the present conditions 1) depending on the extent of the bio extra price 2) the income level covering the costs, reduces the profitable farm size from about 100 ha to 20-60 ha. This gives hope for farmers, whose farm size is considerably smaller (under 10 ha) that the farm size, on which profitably production can be made, is in a relatively reachable distance. To realize this, the state should definitely urge the farms on this, by the available direct and indirect tools.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 17
Date: 2002
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma02:6992

DOI: 10.22004/ag.econ.6992

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