Labor Profitability Research Articles

IMPACT OF THE “BONUSES FOR YOUNG FARMERS” MEASURE UNDER RURAL DEVELOPMENT PROGRAM 2014-2020 ON THE EFFICIENCY AND COMPETITIVENESS OF FARMS

The aim of the article is to assess the effects of the implementation of the sub-measure “Sup-port for young farmers to start their business”, type of measure “Bonuses for Young Farmers” under the Rural Development Program 2014-2020 on the results of farms and their competi-tiveness. In 2017, the group of farms that joined the implementation of the “Bonuses for Young Farmers” measure included 84 farms. It was a research sample and a panel at the same time. The control group consisted of farms of young farmers who did not benefit from sup-port under the Rural Development Program 2014-2020 in the research years, i.e. in 2017 and 2021 (latest FADN results). The subject of the farm panel research was: production potential, production organization, production and economic results, efficiency of use of production factors. During the analysis, it was found that the production potential of young farmers’ farms in both samples in 2017 was similar. The effect of the support was to increase the pro-duction potential in 2021 in the research sample by an average of 35%. Farm income in 2017 was similar in both farm samples. In 2021, differences in farm income levels were even greater. Income in the research sample increased by 211% and was by 149 percentage points higher than in the control sample. Land productivity in the research sample increased by 75.5% and labor productivity by 102.7% and was higher than in the control group by 44.6 and 53.4 percentage points, respectively. Labor profitability in the analyzed years increased in the research group by 220%, and in the control group by 71.7%. Evaluation of the support for young farm-ers' farms in the “Bonuses for Young Farmers” measure indicated that thanks to the support, their production potential increased and their production and economic results improved and, as a result, their competitiveness increased.

Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size

Farms in Poland come in a wide variety of sizes, and the effect of farm size on the profitability of labor has not been sufficiently investigated. This paper takes a fresh look at the model for labor profitability determinants of family farms in Poland in relation to their economic size. The purpose of this paper is to analyze the factors that determine the labor profitability index in farms of various economic size classes (classes ES1–ES5). In the analysis of factors shaping the profitability of labor in family farms, a panel analysis was applied. Family farm income expressed per family labor unit was adopted as the dependent variable. The following variables were used as explanatory variables: (1) macroeconomic index of price relations (“price gap”); unemployment; average monthly gross wages and salaries; inflation; (2) technical-agricultural production efficiency index; (3) microeconomic ratio of total assets to agricultural land; technical equipment for work; land-to-labor ratio; debt ratio, subsidy ratio, and investment effort. A diversified influence of selected factors determining the level of profitability of labor in agriculture in particular groups of farms was found. The econometric models developed also indicate different strategies that are adopted by farmers on various farms. There is no single solution here; strategies for improving the profitability of work must take into account the specificity of a given entity. The models estimated indicate the necessity of using other mechanisms and tools of agricultural policy for farms of various economic sizes. It should be expected that, in the future, there will be a dichotomous development of farms. Medium-sized farms will become larger and economically effective, and smaller farms will perform residential functions, with the disappearing function of agricultural production.

EFFICIENCY OF DAIRY AND BEEF CATTLE FARMS DIFFERING IN LAND AREA SIZE

The increasing size of farms, specialisation and growing scale of production are the primary factors in the improvement of resource utilisation in agriculture. In this context, the aim of this study is to assess and compare the efficiency of resource management in farms differing in land area size and specialising in the production of milk and cattle for slaughter. This assessment was based on data from farms participating in the FADN agricultural accountancy system in 2019. The efficiency of utilised factors of production in the researched farms was evaluated based on indexes of productivity and profitability of land, labour and capital. In dairy farms, the productivity of land was considerably higher and was growing with an increase in their size, whereas in beef cattle type farms it generally deteriorated. Productivity of labour and capital was also much greater and was growing faster in dairy farms. The highest profitability of land was recorded for medium-sized farms of both production types, while the profitability of labour and capital was highest in the largest farms. It needs to be stressed that the income and economic efficiency of farms specialising in the production of cattle for slaughter are determined by financial support within the EU Common Agricultural Policy.

Labor Market Networks and Asset Returns

This paper proposes a measure of labor market connectivity based on the similarity in the composition of occupational knowledge characteristics across industries and provides evidence of return predictability in the cross-section of industries that are connected through the labor market. In long-short portfolios, an industry's return is strongly predicted by the past return of its labor-market-connected neighboring industries with an annualized return of up to 9%, which is not explained by established asset pricing models. The return predictability remains significant after controlling for the supply chain momentum as well as the industry lead-lag effect, and is concentrated in stocks with higher arbitrage costs and higher ownership of uninformed investors. We find similar predictive relations for the labor productivity, wages, employment, and profitability of labor connected industries. Our findings are consistent with positive spillover of productivity shocks among industries that are connected through the labor market. Informational frictions, costly arbitrage, and investors' limited attention magnify the delayed response of stock prices to the spillover of labor productivity shocks, which results in the observed return predictability.

THE EFFICIENCY OF PRODUCTION FACTORS ON AGRICULTURAL FARMS OF THE VISEGRAD GROUP

The objective of the study was to determine the effectiveness of the use of production factors on farms of the Visegrad Group countries. The research covered farms participating in the European system for collecting accounting data from FADN (Farm Accountancy Data Network) farms. Under the main objective, an assessment was made of the productivity and profitability of land, labour and capital. The research period covered the years 2014-2017. Based on the analyses that was conducted, it was found that the most effective use of land resources was on farms in Hungary and Poland, and the least effective in Slovakia. Considering labour and capital productivity, the highest results were achieved by farms in the Czech Republic and Slovakia, while the lowest by Polish farms. On the other hand, Hungarian farms were characterized by the highest profitability of labour and return on assets, where the analysed indicators were higher than the EU average.

REGIONAL DIVERSIFICATION OF INVESTMENT OUTLAYS AND LABOUR PROFITABILITY IN AGRICULTURE IN POLAND

The main purpose of the study was to assess changes in labour profitability against changes in the level of investment outlays in Poland in a regional approach. Empirical material consists of statistical data from the Central Statistical Office for the years 2000-2017. The following diagnostic variables were used for the analysis: (1) characterizing the profitability of the labour factor – gross value added in agriculture per one agricultural employee; (2) characterizing the investment activity of farmers – the value of investment outlays in agriculture per one employee in agriculture, the value of investment outlays in agriculture per 1 ha of agricultural land, the value of investment outlays in agriculture in relation to the value of gross fixed assets in agriculture, the value of investment outlays in agriculture in relation to gross value added in agriculture. On the basis of a set of diagnostic features describing the investment activity of farmers, a classification of voivodships was carried out using cluster analysis using Ward’s method, and a statistical evaluation of the relationship between the investment activity of farmers and the profitability of labour was performed. There has been a significant diversification of farmers’ investment activity and labour profitability in terms of regions. It was found that the level of investment outlays is a crucial factor in the process of improving the efficiency of the use of the labour factor. A level of investments that is loo low does not allow for favourable structural changes and for modernization and restructuring of agriculture to take place.

Analysis of Production and Sales of Organic Products in Ukrainian Agricultural Enterprises

As organic farming gains more popularity across the world, it is important to discuss the underlying trends of its development in Ukraine, who is an important agricultural producer. Organic farming may have lower environmental pressures—therefore, we seek to identify the major trends in the production and sales of the organic agricultural products in Ukraine. In this study, data on the production structure, costs, and selling prices from Ukrainian enterprises are analyzed. Conventional and organic enterprises are contrasted in order to identify the possibilities for the development of organic agriculture in Ukraine. Our results suggest that enterprises that use organic farming in Ukraine tend to produce higher output per hectare, as opposed to those engaged in conventional farming. However, labor profitability remains low in labor-intensive organic farming, especially in larger companies, and organic products remain a low percentage of Ukraine’s agricultural exports. This calls for further study into the development of organic production and consumption in the domestic market, as well as the implementation of appropriate certification practices in order to ensure the growth of organic exports.

Sustainable Economic Development of Farms in Central and Eastern European Countries Driven by Pro-investment Mechanisms of the Common Agricultural Policy

Improvements in sustainability at the farm level are the basic driver of agricultural sustainability at the macro level. This is a challenge that can only be met by farms which efficiently process inputs into products. The increase in the efficiency of European farms is largely conditioned by measures taken under the Common Agricultural Policy (CAP), especially its second pillar. The purpose of this study was to determine the net effect of pro-investment instruments available under the second pillar of the CAP in selected Central and Eastern European countries. Unpublished Farm Accountancy Data Network (FADN) microdata provided by the European Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI) were used as the source material. The study presented in this paper is unique in that the research tasks are based on unpublished microdata of selected Central and Eastern European farms. The study relied on the Propensity Score Matching approach; the net effect of pro-investment mechanisms was analyzed using productivity and profitability indicators calculated for farms which have been keeping FADN records for a continuous period of no less than 6 years. As shown by the study, structural funds available under the CAP clearly provided an investment incentive for farms. The conclusion from the assessment of changes in the availability of productive inputs is that the beneficiaries reported a greater increase in fixed asset value and in farm area in all countries except for the Czech Republic and Slovakia. The comparative analysis of countries covered by this study failed to clearly confirm that labor is substituted with capital to a significant extent. Every country covered by this study experienced a noticeable negative net effect on both the productivity and profitability of capital. When considering all the countries, the beneficiary group has no clear advantage over the control group in terms of changes in land and labor productivity and profitability (a statistically significant positive effect was recorded for land productivity and profitability in Slovenia). As regards labor, a statistically significant positive net effect (a difference in growth rate between the beneficiary group and the control group) was recorded in Slovenia, but also in Poland, where beneficiary farms reported a greater increment in labor profitability and reduced the negative difference in labor productivity.

WPŁYW WYDAJNOŚCI PRACY NA DOCHODY GOSPODARSTW ROLNYCH W POLSCE

In the case of all farms, the issue of profitability achieved is crucial. The effectiveness of production factors involved, including labour, shapes income in agriculture to a large extent. Thus, the increase in the productivity of the labour factor determines the increase in the labour profitability. On the grounds of classical microeconomic relationships, it can be pointed out that the increase in farm income, which is the remuneration of the labour factor, can take place, ceteris paribus, with the increase in production. Assuming the permanence of labour factor inputs in the long term, the source of production growth should, in turn, be the increase in the labour productivity. The objective of the paper is to identify differences in the impact of labour productivity on farm income, with the dominance of family labour force and on farms with a dominance of paid labour force in Poland. The results presented may serve as a basis for concluding on the income situation of farms depending on the type of labour factor involved. The study will use the FADN data from 2009-2015 for Polish farms. The impact of labour productivity on farm income will be analysed using the propensity score matching method

SIZE AND EFFECTIVENESS OF FIELD CROP FARMS

The aim of the study is the assessment of the management effectiveness of production resources on farms of various sizes focused on cultivating cereal, oil and protein crops against a background of total field-crop farms and total farms. The assessment covered farms encompassed by the FADN system in 2017 in the scope of production organization and intensity, production and economic results as well as the effective management of resources. The productivity and profitability of resources on cereal farms was found to be on a far lower level, however, as farm size increased, the productivity of land resources generally rose, too. There is a reverse tendency when compared to the tendencies observed in the total number of farms, including horticulture farms. Together with an increase in farm size, differences in profitability declined. The greatest differences were observed when it came to land resource profitability, while the least in the scope of labour profitability. Therefore, it can be assumed that by increasing the size of cereal farms, the effectiveness of managing land resources on such agricultural holdings will clearly improve.

Employment Opportunities of Daily Wages Construction Labour at Camp Road Junction

In construction field the labours are the back bone of the site work as well as all sort of work which is executed in the construction. Labours plays a major role in deciding the success of the project and the labour factor also plays a major role in time deciding of the completion of the project. As there is a requirement of more number of labours the wages provided to them are been less when compared to other state. The labours from other state is also are employed more when compare to the native state labour though they are paid less when compared to the native state labours. In this study a junction where the labours are more in numbers are chosen for the surveying from them and with the details collected from them are been used to analysis their current scenario and their present situation in the construction field. In this study the maximum labours chosen for survey are mason are of 70% from the total survey. Further, the paper brings up that the expansion in labor profitability has not been converted into expanded development in genuine wages, especially for easygoing specialists. The Minimum wages Act is inadequately actualized, especially in rustic zones. Subsequently, there is a need to make game plans for the compelling execution of this Act. In general, the paper contends that the low degree of wages and the expanding wage differential crosswise over various portions of the work market have brought about across the board destitution among specialists, especially development works.

Energy Utilization Patterns for Sustainable Crop Production in the Semi-Arid Vertisols of India

In semi-arid regions, the amount of rainfall and its distribution governs not only output levels but also influences uses and pattern of energy-inputs. Current study analyzes the role of energy and economic indicators to identify a suitable crop under different rainfall situations in rainfed areas of southern India. For this study, ten years data on production of rainfed sorghum and chickpea were analyzed with help of an array of energy and economic indicators like net energy, energy efficiency, specific energy, energy productivity, energy intensity and human labor profitability. The results of the study show that the share of non-renewable energy (80% in normal rainfall years) was remarkably higher than renewable energy in production of both the crops. Deficient rainfall led to decline in the consumption of energy inputs by 19.6 and 5.7 %, and consequently resulted in a reduction of output energy by 48.6 and 63.4 % in comparison to normal rainfall in case of sorghum and chickpea cultivation, respectively. Further, energy efficiency scores were found to decline to an extent of 1.95 and 1.29 under deficient rainfall situations from the levels of 3.06 and 3.32 obtained under sorghum and chickpea production under normal rainfall conditions, respectively. The computed values of benefit: cost ratio and energy efficiency suggests that chickpea is the more suitable rainfed crop as compared to sorghum in the semi-arid Vertisols of Karnataka.

CHANGES IN PROFITABILITY OF LABOUR IN THE ASPECT OF TECHNICAL PROGRESS IN AGRICULTURE IN POLAND

The aim of the study was to evaluate the relationship between changes in agricultural productivity and the level of labour profitability in agriculture in Poland. An increase in agriculture productivity in Poland was found, while at the same time there was a decline in real prices of agricultural raw materials and a deepening disparity of agricultural income in relation to the remuneration of national economy.

Regional Differentiation of Farm Profitability in Poland during 2006-2014

Abstract Subject and purpose of work: The aim of the study is to assess the regional differentiation of the average level of farm income and to answer the question of whether during 2006-2014 there was a tendency towards convergence in this area. Materials and methods: The spatial scope of research included four FADN agricultural regions, whereas the time span covered the years 2006-2014. The numerical data used for the analyses were sourced from standard FADN results. The assessment of convergence was carried out using the coefficient of variation (sigma convergence) and the relative index of changes in the regions compared to the country (beta convergence). Results: The conducted research indicates the existence of regional disproportions in terms of average income level and average labour profitability on farms. The highest average income was achieved throughout all the years covered by research in the region of Pomerania and Masuria, and the lowest one in Lesser Poland and Carpathian Foothills. The research demonstrates that during 2006-2014 there was no convergence in the average level of income and average labour profitability of farms in the FADN regions. Conclusions: Convergence is a long-term process, so the research should be treated as an initial examination of the regional differentiation of the income situation of farms.

The Elasticity of Agricultural Income in the EU Member States Under Different Cost Structures

The aim of this paper was to determine whether the EU countries which vary in terms of their cost structure in agriculture, differ also with regard to the influence of capital-labour ratio and land supply per worker on labour profitability. It was assumed that data concerning the presence and character of those differences can contribute to better understanding of the nature of agricultural development in the EU countries. The main sources of data used in this paper were the Economic Accounts for Agriculture (Eurostat) and the FAOStat database. The study covered the period of 2004-2014. In the article it was shown that agriculture in the EU countries is varied in terms of cost structure, and in the cluster II, including mostly the countries of the so-called “new” EU, intermediate consumption is of relatively larger significance for their cost structure. In the countries of the “old” EU an important role is played by the depreciation of buildings and external services. Stronger influence of capital-labour ratio on the payment to the factor of labour was observed in the cluster II countries. In those countries, increasing capital expenditures was a more efficient strategy to increase income.

The Legality of the Charitable Model of Disability Under Corporate Social Responsibility (CSR)

This paper musty elucidate how the dependency on charitable deeds remains the means of global funding platforms for transnational corporations to aspects of individuals with disabilities. The paper will demonstrate why perceptive of charity approaches are associable with philanthropic notions transnational corporations while investing in courses of corporate social responsibility. This research connects that the origins of the charity model to aspects of international disability to the widespread industrialisation the across Europe the nineteenth century. The paper notes that given the increased levels of urbanisation at the time, there was an increase in demand for providing labour throughout the factory-based systems that comprised the formed industrial plants. The paper shall use ideas of productivity and profitability of labour in illustrating why such a complex of the political economy played a role in worsening the categorisation of persons with disabilities as being unproductive or uncompetitive individuals. That made persons with disabilities prone to more exclusion from the mainstream workforce as unfit for matching the aspirations of purely universalised and impliedly demining attitudes of profit-minded employers. Obviously, systems of capitalistic institutions have a tendency of prioritising competition. Thus rationale for recruiting and rewarding of the most productive and profitable individuals in all aspects of life. Whereas comparatively excluding the recruitment and appreciation of certain individuals that perceived as more costly in supporting, slower in adopting change and slightly less productive in eyes of transnational corporations that are founded on shareholding concepts profit maximisation capitalistic ideologies.

Доходность и производительность труда в России: направления движения капитала

Доходность и производительность труда в России: направления движения капитала

Economic and Mathematic Modeling of Labour Efficiency

The article is dedicated to the author’s methodology of economic and mathematic modeling of labour efficiency indicators. Conditions and type of labour determine social and economic efficiency of labour, the increasing of which is becoming necessary for any organization. Economic and mathematic modeling makes it possible to calculate planned indicators of labour efficiency according to different parameters. The research suggests methods of building one-factor and multifactor statistic and dynamic economic and mathematical models of labour effectiveness indicators. The efficiency of labour of different categories of workers can be presented by two groups of indicators: indicators of production efficiency (labour efficiency) and indicators of economic (financial) efficiency (profitability of labour). On the basis of the analysis of the studied factors the dependence was derived which can be expressed in a deterministic or stochastic factor economic and mathematical model. Advantages of a stochastic model of efficiency of work consist is that incomplete, vague and insufficiently formalized information is also taken into account through a complex factorial function with variable structure and the changing nature of dynamics. The presented method allows a high degree of reliability in modeling planned increase in efficiency of labour. Thus, when evaluating and planning the efficiency of labour of the workers of commercial enterprises not only productivity but also profitability of labour should be taken into account. DOI: 10.5901/mjss.2015.v6n6s3p527

Economic sustainability of agricultural holdings on the basis of the data of the Agricultural Census 2010

Measuring the level of agriculture sustainability is very complex. Different proposals are presented and discussed, and still, there is no generally accepted measures of the sustainability of agriculture. This problem also concerns economic sustainability of agriculture. Sustainability of agricultural holdings determines the sustainability of agriculture, although these notions are not identical. The purpose of the article is to present proposals for measuring the economic sustainability of agricultural holdings on the basis of Agricultural Census 2010 data. This article sets the following indicators of the economic sustainability: land productivity, labour profitability, farms market activity and sources of households’ income and maintenance. The analysis concerns individual agricultural holdings with at least 1 ha of agricultural land and it is also carried out in four area groups.

Economic sustainability of Farms in Poland

Measuring the level of agriculture sustainability is very complex. Different proposals are presented and discussed, and still, there is no generally accepted measures of the sustainability of agriculture. This problem also concerns economic sustainability ofagriculture. Sustainability of agricultural holdings determines the sustainability of agriculture, although these notions are not identical. The Agricultural Censuses that are carried out in all the European Union countries are based on a uniform methodology. The Agricultural Census data can be used to measure the sustainability of agricultural holdings, including economic sustainability – in individual countries and for comparative analysis between them. This, without doubts, is a great advantage of this database. However, a limited scope of collected data is their weakness. The purpose of the article is to present proposals for measuring the economic sustainability of agricultural holdings in Poland on the basis of Agricultural Census data, 2010. This article sets the following indicators of the economic sustainability: land productivity, labour profitability, farms market activity and sources of households’ incomeand maintenance. The analysis concerns individual agricultural holdings with at least 1 ha of agricultural land and it is also carried out in the area groups.Key Words: agriculture, environmentally sustainable farm, income,