Profitability and Investments of EU Specialized Crop Farms – Are They Related Over Time?
2023
Todorović, Saša | Ivanović, Sanjin
While farms specialized in field crop production are the most numerous in the EU, cereals, oilseeds and protein crops (COP) farms are the most common within them. Therefore, COP farms sized 50,000-100,000 EUR (expressed in standard output) were used to observe trends of number of farms, profitability and investment activity over time. Cross-correlation methodology was applied to analyze correlation between time series of indicators expressing profitability and investment activity. To acquire the data needed for the analysis authors used FADN public database for period from 2004 to 2020. The results indicated that changes in profitability indicator (Return of Equity) are associated with investment activity (Gross Investment on Fixed Assets and Net Investment on Fixed Assets) one year later. Having in mind that the correlation is positive and strong, the results could be used for making appropriate policy measures as well as to reach informed business decisions on farm level.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
Publisher Faculty of Agriculture, Belgrade, Serbia
This bibliographic record has been provided by Matica Srpska Library