Economic Efficiency versus Energy Efficiency of Selected Crops in EU Farms

Paweł Boczar and Lucyna Błażejczyk-Majka ()
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Paweł Boczar: Department of Economics and Economy Policy in Agribusiness, Faculty of Economics, Poznań University of Life Sciences, 60-624 Poznań, Poland
Lucyna Błażejczyk-Majka: Department of Economic History, Faculty of History, Adam Mickiewicz University, 61-614 Poznań, Poland

Resources, 2024, vol. 13, issue 9, 1-15

Abstract: The goal of farmers operating in a market economy is to maximize profit. In view of the changing political situation, the main social interest, in addition to food security, should be energy security. Here is a refined version of that sentence: This article examines the production efficiency of selected crops grown in the EU and how well their production can ensure both the economic security of the producers, i.e., the farmers, and Europe’s energy security. In addition, it aims to determine which costs incurred in the production process have the greatest impact on productivity. The paper uses data obtained from the Cash Crop agricultural benchmarking database, covering 19 crops and 39 cost categories for each crop. The data (averaged for 2019–2021) came from 30 farms located in 11 EU member states. The DEA method and stepwise multiple regression were used. Research has shown that crops are already being grown in Europe that provide high energy efficiency in production without compromising farm performance (including oats, peas, and winter rye). Moreover, improving the involvement of certain inputs results in improved production efficiency (e.g., through spending on agricultural consulting services). In addition, crop economic efficiency, as assessed by profit with and without subsidies, was found to be strongly correlated with production efficiency. This could indicate that subsidies do not play a key role in farm efficiency within the EU. Crop productivity remains a key factor in achieving economic and energy efficiency. The significance of the findings presented in connection with the recent COVID-19 pandemic and the escalation of the armed conflict in Ukraine has led to renewed interest in EU energy security, i.e., generating as much EU energy as possible for food and non-food production.

Keywords: agricultural production efficiency; agricultural resources; economic security of farmers; Europe’s energy security; EU agriculture; economics of land use; DEA method; stepwise multiple regression; profit with and without subsidies (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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