Adjustment and Differences in Farm Performance - a Farm Management Perspective from the Netherlands

Krijn J. Poppe and Hans Meijl

No 15765, IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA, from International Agricultural Policy Reform and Adjustment Project (IAPRAP)

Abstract: There are differences in performance between farmers. In the Netherlands this has been a major topic of research for at least 30 years. Research has shown that the managerial capacities of farmers play a major role in differences in economic and environmental performance. Management can be measured and the optimal level is not the maximum level. Farmers differ in their objectives, competences and local external situation and therefore their strategies. These strategies can be identified. In recent years strategic management has become more important and this can be supported with consultancy. Farmers also differ in their adoption and innovation behaviour. These micro economic results, that correlate with large differences in income and high prices of fixed assets with a limited supply, can be explained as being consistent with economic theory on perfect markets. Although these findings suggest that some farm households have attractive strategies that can cope with policy adjustments, the research supports the hypothesis but does not (yet) prove that a severe adjustment of agricultural policy e.g. towards a more market oriented policy, induces more innovation, and that due to this innovation the effects of adjusting the agricultural policy are less severe then ex-ante estimated with current dynamic policy models.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 23
Date: 2004
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Working Paper: Adjustment and differences in farm performance; A farm management perspective from the Netherlands (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iapr04:15765

DOI: 10.22004/ag.econ.15765

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