Impact of land tenure on the participation in factor income in agriculture of Slovenia

Abstract

Abstract The purpose of the article is to present agricultural land tenure in Slovenia and its impact on the division of the factor income into the part intended for the production factor of land and the improvement by the introduction of the rent statistics. The land, together with the labour force and capital, contributes to the income generation and it is one of the production factors that participate in the income division. The analyses so far have been based on the FADN data but the Slovenian analysis is based on data from the Economic Accounts for Agriculture (EAA), it uses different sources, and a different calculation approach. The calculation is based on the share of rented utilised agricultural area which amounts to about 30% of the total utilised area. Due to the availability of the data the rent value is calculated depending on the institutional sectors – for agricultural enterprises (the non-financial enterprise sector) and family farms (the household sector). In 2016 the average rent per ha of utilised agricultural area amounted to almost EUR 150 and the nominal value of rents paid in Slovenian agriculture to EUR 21 million. Slovenian share of rent in factor income for the period 2000–2016 is 3%, which is substantially lower than the European Union (EU-28) average of 8%. In 2016, the factor income per employee was around EUR 6,000; about 4% of this amount was contributed to the land in the form of rent value. The rest was contributed to the workforce and capital. The paper presents the results that could be helpful for the agricultural and land policy makers.