Branka Šakić Bobić

Business and production performance of different types of agricultural holdings

Farm Accountancy Data Network (FADN) was established in the EU in 1965 and now it is obligated for all member states of the EU. The system is based on an annual collection of production, economic and financial data from a representative sample of comercial farms, classified into groups according to the criteria of economic farm size, type of agricultural production and regional affiliation. Research made by FADN system represent the European Commission instrument for evaluating the income of agricultural producers and determining the impact of the Common Agricultural Policy of the EU on their business. In this paper the comparison is made between production and economic indicators of different types of agricultural holdings (field crops; horticulture crops; permanent crops, orchards and olive yards; dairy farms; grazing livestock; pig and poultry farms and mixed farms). On the basis of Standard Results for the year 2014 it is possible to conclude that in Croatia field crops and grazing livestock farms lead by their utilized agricultural area. Pig and poultry farming have the most livestock units, while the most working hours is spent in the cultivation of vegetables and flowers. The highest values of labor productivity have holdings that are engaged in the production of vegetables and flowers, while the lowest labor productivity have grazing livestock farms. Cost-effectiveness of all types of farms exceeding a value of 1. The highest value of the gross income is achieved at pig and poultry farms, while the smallest has a mixed type of farms. The average farm direct payments account for a high 44% in the net income, and the largest share of direct payments in the net income has field crop type of farms.

Economic results of Croatian farms

The objective of the paper is to provide an overview of the situation and performance of Croatian farms. Croatian farmers rarely keep business books and therefore farm level business data are deficient. Croatian accession to the European Union in 2013 brought numerous innovations to agricultural sector. One is introduction of Farm Accountancy Data Network (FADN) which aims to determine the impact of the Common Agricultural Policy on national agriculture of EU member states. The sample of Croatian FADN comprises 1,250 commercial farms. The paper brings results of agricultural sector financial analysis for the period 2011-2013. Total farm output decreased, but since the stronger decrease trend occurred in total inputs, this led to positive trend of gross and net farm income in the year 2013. Positive results are also shown at efficiency and productivity of Croatian farms. In the years 2011 and 2012 farms operated below the efficiency level while in 2013 efficiency increased above the efficiency level. In the observed period there was a 70% increase in productivity. The analysis shows that the most efficient farms are those in vegetables and flowers type. It also has the highest debt ratio due to their capital intensiveness. The vegetable and floriculture farms have the largest gross farm income in all three analysed years, but with a large drop in 2013, while the farms in type pigs and poultry have largest increase of gross farm income in last observed year.