One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union

Łukasz Kryszak and Thomas Herzfeld
Additional contact information
Łukasz Kryszak: Department of Macroeconomics and Agricultural Economics, Institute of Economics, Poznań University of Economics and Business, Poznań, Poland

Agricultural Economics, 2021, vol. 67, issue 11, 445-456

Abstract: Agricultural structures are quite heterogeneous across the European Union (EU), and it is likely that the underlying technology also differs across regions. In this article, we claim that the heterogeneity of agriculture across the EU affects the process of income creation (i.e. the relative importance of the factors of farm income differ for different agricultural models). A panel of farms representative for 125 regions reporting to the EU Farm Accountancy Data Network (FADN) during the period from 2007 to 2018 is used. In this article, those regions are grouped into three clusters. A system generalised method of moments (GMM) panel estimator is applied to each cluster. The results showed that total factor productivity (TFP), relative prices and agricultural subsidies make different contributions to farm net value added (FNVA). In particular, the income growth of farms in regions dominated by large farms seems to react more to marginal changes of the explanatory variables.

Keywords: cluster analysis; dynamic panel models; Färe-Primont index; farm income; total factor productivity (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/154/2021-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/154/2021-AGRICECON.pdf (application/pdf)
free of charge

Related works:
Journal Article: One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:67:y:2021:i:11:id:154-2021-agricecon

DOI: 10.17221/154/2021-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová, Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().