Area or economic size? The role of specialization in productivity convergence of subsistence farms in Central and Eastern Europe from 2005 to 2016

The paper deals with developments and possible future of small farms in EU with special respect to EU 10 (Central East European Countries, CEECs) analyzing the structure of small farms by economic and area size on one hand and, their Standard Output (SO) as well as labor use (Agricultural Working Unit, AWU) and the farm manager aspect on the other. The main conclusions of the paper underline that importance of small farms in rural development cannot be neglected by policy makers, although, trends of development indicate certain differences in concentration in economic size, area size, standard output (SO) and engaged labor between CEECs. It was pointed out that decline of number of farms and that of small farms especially has continued between 2005 and 2010 more in EU 10 than EU 27 and more in case of farms with less than 2 ha (UAA) in EU 10. Decline was much higher in case of small farms run by managers over 65. Labor use also went back in small farms more in EU 10 than EU 27 and more in case of farms with UAA below 2 ha. Standard Output grew faster in EU 10 than EU27, however concerning SO of small farms below 5 ha a higher declined was observed in EU 10 in compare with EU 27. Brief evaluation on effectiveness of CAP in 2006–2013 programming period and future policy towards small farms for 2014–2020 was also discussed.

The paper explores which farm types by specialisation direction2 (ten different types) and at what farm sizes by physical size3 (five categories) of specialised farms backed more production growth and productivity development in Central and Eastern European Countries (CEECs, EU104) over the period of 2005-2016. We compare EU10 average figures to EU27/15 averages and outline the changes by specialisation in total resource use of (i) labour (AWU), (ii) land (UAA) as well as in (iii) average farm size (UAA/specialised farms), (iv) total farm productivity (SO/farm), (v) labour productivity (SO/AWU) and (vi) area productivity (SO/UAA). We conclude that production and productivity growth of specialised farms in EU 10 differs by country, and by type and size of farming and, each CEEC has followed her own path of farm structure development in line with the country’s tradition and economic possibilities. We give regional characteristics of development in main specialisation types broken down to 5 farm size categories. We concluded the number of cereal farms increased in 6 out of 10 countries in all farm size categories and that of cattle farms went up in 5 out of EU 10 from 2005 to 2016. Farms with these two specializations have significantly extended agriculture land use and more than tripled production, but used more labor compared to basis year. SO/Farm/UAA/AWU productivity indicators of cereal farms increased quite a bit in most farm size categories in all EU 10 countries to a less extent in cattle, poultry pig and dairy farms. Growth in area productivity was led by pig, poultry, and cereal farms at E 10 level. Growth of the three productivity indicators in EU 10 are scattered quite a bit by farm types, and by countries but generally was headed by three farm size categories as 5-19.9 ha, 20-49.9 ha and 50-99.9 ha. However, the distance between EU10 and EU15 related to the level of production, land, and labour productivity still shows wide gap which needs to further narrow in the coming years.

In the context of China’s implementation of the rural revitalization strategy, it is essential to study the total factor productivity of animal husbandry in pastoral areas under the grassland ecological compensation policy, which is essential for promoting the harmonious development of animal husbandry production and grassland ecology in pastoral areas and helping the rural revitalization strategy. Based on the survey data of pastoral areas in Inner Mongolia, this paper measured and comparatively analyzed the differences in the changes in total factor productivity of pastoral households in each region and its convergence and discussed the main factors driving the total factor productivity of animal husbandry. The results of the study show that: (1) Except for Ulanqab City, the annual average total factor productivity of animal husbandry in the region as a whole and in each region is greater than 1, indicating that the animal husbandry production level of herdsmen has been improved to some extent during the policy implementation period. From the phased situation, the overall total factor productivity of animal husbandry in the Inner Mongolia region shows a characteristic of decreasing first and then increasing, while each region shows a different trend of change. (2) In terms of convergence, there is a certain degree of convergence during the policy period for both the region as a whole and each region, indicating that as the grassland compensation policy advances, the spatial differences in herdsmen total factor productivity in animal husbandry show a trend of gradual reduction, and the overall sample represents the sample of all the investigated areas. (3) In terms of driving factors, herdsmen education level, the degree of travel convenience, the degree of by-business, whether they participate in the subsidy policy, and whether they are fined have significant positive effects on their total factor productivity in animal husbandry, while the family dependency ratio and the degree of government regulation have significant negative effects on total factor productivity in animal husbandry. This paper takes the total factor productivity of animal husbandry in pastoral areas as the starting point, providing a new perspective for the research on the effect of the grassland ecological compensation policy. At the same time, it expands the driving factors of total factor productivity in animal husbandry. The conclusion provides a reference for improving the grassland ecological compensation policy and coordinating the harmonious development of production, life, and ecology in pastoral areas.

The paper deals with the main directions of specialization in Central and Eastern European Countries’ (CEECs, EU10) agriculture after the EU’s Eastward Enlargement. We analyse and compare growth and productivity advantages of specialized farm types by physical size (in hectare) in EU10 member-states to the EU10/27/15 average based on EUROSTAT data in the period of 2005-2016. We focus on exploring the main directions of specialization using such indicators as the number of specialized farms, land (Utilized Agricultural Area, UAA) and labour (Agricultural Working Unit, AWU) use on the input side, average farm size by land and labour use as well as area-, labour-, and total productivity on the output side. We conclude that the directions of specialization in farming in EU10 were based on the traditional farm production structure making the latter better able to adjust and take advantages of Common Agricultural Policy. Concerning production growth rate, the three leading specialization types of CEECs’ farms were: (i) cattle rearing and fattening, (ii) cereals, oilseed and protein crops and (iii) fruits and citrus fruits. These three specialization types of farms – in the same ranking order - also increased land (UAA) and labour (AWU) use well above the average. Specialized cereals farms and cattle rearing and fattening farms were also ranked in top three by number. Both cereals and fruits specialized farms have leading position in growth rate of land and labour use and also are in top three in growth rate of land area and total farm productivity. Cereals and fruits specialized farms also more than doubled labour productivity during the first decade after the EU’s Eastward enlargement but did not rank in the top three in this category.

The paper makes a comparison between specialized small (below 5 ha UAA) and non-small farms (5 ha and over) and non-specialized farms with particular respect to the EU-10 (Central and Eastern European – CEECs) countries. It analyses the structure and growth of farms in terms of 10 types of their specializations, performance, labour and land use between 2005 and 2013. The aim of the paper is to point out which type of specialized farms demonstrate advantages in terms of production growth and productivity when compared with non-specialized farms. It has been concluded that in area, labour and total productivity both small and non-small specialized farms of EU-10 have achieved higher growth in compare with related farm categories of EU-27. Within EU-10 number of specialized farms has declined less than the number of non- -specialized ones. Average farm output of specialized farms (both small and non-small) have exceeded that of non-specialized farms both in 2005 and 2013. The growth and productivity of specialized farms varied according to countries and according to farm types. Comparing specialized farms to non-specialized ones within EU-10 non-specialized small farms have advantage in growth of area and labour productivity while non-small non-specialized farms have achieved higher growth in labour productivity.

The rural areas in Bulgaria cover more then 80% of the country territory and account for about 29% of the population. Their development depends strongly on agricultural sector. The paper examines structural changes in agriculture, labour market situation in rural areas and presents the main results of the survey performed in three region of Bulgaria. The study shows a substantial decline in the number of farm with economic size between 0,5 and 3 ESU and a stable increase in the number of large farms. Major factors having impact on farm restructuring are: improvements in economic situation, in particular the increase in real income, positive developments of land market, deterioration of age structure of rural population and the habits of rural population to keep some agricultural activity. An important development of subsistence and semi subsistence farms is observed indicating two opposite processes: a process of transforming of a small part of semi-subsistence into commercial farms or into higher economic size group and another part of them converged to subsistence farms. The number of subsistence farms with economic size 0,5 – 1 ESU also declined as the reduction is either due to reduction of farm activity or due to exit from the sector. The most important option for employment and source of income in villages studied is agriculture, but the earned income is much below the national average The most important factor having impact on a decision to start a job outside agriculture is “To ensure households leaving standards/ generate cash income”. Generally the respondents do not think that they will have possibility to start their self employed business outside agriculture in the next 5 years. Only 25% of them expect to stay in agriculture as nearly 50% of the commercial farms will keep operating and only 17% - 26% of small farms will remain in the sector

Economic Size and Developmental Possibilities of Chosen Family Farms in Poland

Abstract. Suryaperdana Y, Soewardi K, Mashar A. 2012. Relationship of mangrove environment to the shrimps and milkfish production in silvofishery area of Blanakan, Subang, West Java. Bonorowo Wetlands 2: 74-85. Silvofisheries represent an integrated approach to conserving and utilizing mangrove resources to maintain a relatively high level of integrity in the mangrove area while capitalizing on the economic benefits of brackishwater aquaculture. This research aims to assess the environmental conditions of mangrove ecosystem condition and its relation to farmed shrimp, milkfish, and nature shrimp production in the silvofishery area Blanakan, Subang, West Java. And to see the relationships between the mangroves with the production of fisheries, then analyzed by the method of regression analysis. An attempt has been made to relate the surface areas of mangroves and the commercial shrimp production in those areas and adjacent waters in Indonesia. A significant linear relationship (? = 0.05) was obtained between these two variables as expressed in an equation: y = 3.783 x +23.13, with r2 value of 90.2% where Y is kg the nonfarming production (natural shrimp) and X is the mangrove surface. This relationship indicates that the shrimp production increases with the size of the mangrove area, implying that any reduction of the tidal forests, purposes will cause a decrease in shrimp yield. Meanwhile, the result of regression analysis between the surface areas of mangrove with farming production (shrimp and milkfish) obtained the equation y = 0, 819x 235.3 with a value of r2 = 30.5%. The existence of mangroves can affect environmental conditions, the content of chlorophyll-a relatively higher, stable pH, and DO relatively better. Meanwhile, farming production (shrimp and milkfish) showed uncertain conditions because the success of farmed fish (shrimp and milkfish) is more determined by the management of ponds.

One of the areas of improvement of state agrarian policy in Ukraine is increasing support for small farms. However, there is still no common position on the division of agricultural producers by economic size. For identifying it, it seems appropriate to take into account the practice of the European Union, where the typology of farms uses the indicator of economic size. It is based on the economic parameter of Standard Output (SO) and describes the possible value of production that the producer is able to get, with the available productive capacity and conducting business in a particular region. The economic size of farms is determined based on their acreage and number of animals using regional SO ratios, which are calculated in the EU by relevant authorities. The farms are classified by economic size in 14 classes ranging from less than 2 thousand Euros to more than 3 mln Euros. Within the system, there are groups of small, medium and large farms. Ukraine needs to adopt the European approach to assessing the size of the farms, in which the group of small sized farms would include individual farms (households), peasant family farms and small sized economically independent farms. It is necessary to immediately start to build a national system of determination of farm size in terms of the economic parameter of Standard Output. During the transition period, it is expedient to temporarily assess the economic value of farms using an indicator as close as possible to the SO.

Farming systems of the Loess Plateau, Gansu Province, China

The study analysed the productivity of rice farmers in Jere Local Government Area, Borno State, Nigeria. Jere LGA was purposively selected due to concentration and availability of rice farmers. A simple random sampling technique was applied to select 50 respondents. Data were collected using structured questionnaire. The data collected were analysed using descriptive statistics and Total Factor Productivity (TFP) model. The findings revealed that the respondents were mostly male (88%) and within the age group of 20-49 years. The result show that majority of the rice farmers were married (58%) and 32 % of the rice farmers had secondary education. The total factor productivity model showed an output growth rate of 0.03%/ha. Major constraints affecting rice production in the area include: labour cost; lack of credit facilities; pest and diseases; and market accessibility. The study concluded that rice production in the study area is productive with a TFP growth rate of 0.03%/ha. The study therefore, recommends that Governments’ policies should be designed to ensure adequate supply of farming inputs such as improved seeds and fertilizers in good quantity and quality at subsidized rate to younger farmers to encourage them as they form majority of rice farmers.

Small farms amount the largest group of agricultural holdings in Hungary, however their number significantly decreased by 36.4 per cent between 2005 and 2013. These predominantly subsistence or semi-subsistence farms are playing an important role by supplementing the rural household incomes and also producing the significant part of agricultural production. In our research, we examined the situation and future prospects of these small self-employed farms which are typically not engaged in market production and are not professional. The aim of the research was to present the major economic and social parameters of small farms, to identify their types, to border the circle of farms develop to market-oriented entities as well as to draw up development policy proposals.

Organic agriculture is a prime case for studying social processes of environmental reform. We empirically assess the environmental consequences of organic agriculture using cross-national data and find that greater area of organic agriculture land is associated with lower fertilizer consumption while larger average organic farm size is associated with higher fertilizer consumption. Then we investigate the cross-national factors influencing organic land area and average farm size. We test hypotheses derived from three theoretical perspectives: neoliberal modernization (NLM) theories, international political economy (IPE) theories, and world polity theory. In support of NLM theories, we find that agricultural export intensity is positively associated with organic agriculture land area. In support of IPE theories, we find that both economic development and agricultural export intensity have significant, positive effects on average organic farm size. World polity theory is supported with a positive association between number of environmental international nongovernmental organizations and organic land.

Green total factor productivity is not merely an inevitable choice to continuously increase the quality of China’s economy, but also a booming demand to promote global development. With the fast development of the new generation information technology represented by world comprehensive web technology, Internet growth may well play a more crucial role in enhancing green total factor productivity in China. Based on 2009-2017 China’s inter-provincial panel data, this article uses the threshold regression model and fixed-effect model to empirically investigate the influence intensity and internal mechanism of green total factor productivity in areas affected by the Internet development. We ultimately come to the following conclusions. First, there is a digital divide between the regions of China. Second, many factors such as Internet development, human capital, urbanization, energy efficiency, and external dependence all exert a positive influence on China’s green total factor productivity. At the same time, government intervention is not conducive to green total factor productivity. Third, the influence of Internet growth on China’s green total factor productivity is non-linear, based on the significant double threshold effect of human capital. As the level of human capital continues to exceed the threshold value, the effect of Internet expansion on the green total factor productivity of China has undergone a structural change. The result has changed from a weak negative influence to a positive one, and the significance is increasing. To advance the smart, green, and coordinated development among regions, it is necessary to bring “Internet +” into full play in promoting China’s green total factor productivity, strengthen the deep integration of Internet development and industrial development, and improve the level of clean production utilizing network information.

Kakamega district in Western Kenya represents the smallholder farming systems typical for much of the densely populated humid highlands in East Africa. A specific feature, however, is the presence of a protected forest reserve (Kakamega Forest National Park), covering some 20% of the district area. Year‐round crop production with little use of external inputs is resulting in declining soil fertility and crop yields. Technologies to counteract fertility constraints are rarely implemented, as they do not consider system diversity or farm‐specific characteristics. We surmised that farm type–specific targeting of technology options to address soil fertility–related production constraints would reduce the anthropogenic pressure on the resources of the adjacent Kakamega rainforest reserve. Based on Kenyan national census data, we selected 168 farms in physical proximity of the Kakamega forest and characterized them regarding production system and soil attributes. Cluster and principal component analyses identified five distinct farm categories. Three representative farms from each cluster group were subsequently selected to establish labor‐use patterns, draw resource‐flow maps, and determine NPK balances.Small subsistence‐oriented farms were most common (> 50%), with maize yields of 0.9 t ha–1 (Cluster 1). Most farmers relied on the forest to provide fire wood, animal feed, and medicinal plants. Mixed farms, combining subsistence maize with industrial crops, were differentiated by soil type, with tea being grown on Ferralsol (Cluster 3), and sugar cane being grown on Acrisol (cluster 4). The dependence on forest resources was limited to animal grazing and the collection of feed stuff (Cluster 3), or the extraction of medicinal plants (Cluster 4). Only few farms showed a high degree of market orientation of the food‐crop production. These comprised either small farms with high investments in fertilizer and maize yields close to 2 t ha–1 (Cluster 2), or larger farms (1.6–3.9 ha) with low fertilizer but high hired‐labor use (Cluster 5). Their reliance on forest resources was generally low. Resource flows showed mainly patterns of nutrient export in subsistence farms, and more complex flow patterns, involving several farm compartments, in the diversified farms. Partial nutrient balances were strongly negative for N and K, irrespective of soil or farm type. Soil‐fertility characteristics reflected the nutrient balances with generally low C and N in all farms on Acrisol, and low P in farms not applying mineral fertilizers or farmyard manure. The proposed typology is expected to improve the targeting of technologies addressing soil fertility–related production constraints, and to reduce the pressure on forest resources. This is of particular importance in the case of small‐scale subsistence and mixed farms close to the forest margin.