The farm size in the less-favoured areas and the economy of support spending on public goods production in the case of the Czech Republic
2012
Stolbova, M., Ustav Zemedelske Ekonomiky a Informaci, Prague (Czech Republic) | Micova, M., Ustav Zemedelske Ekonomiky a Informaci, Prague (Czech Republic)
Opportunities for savings in both human labour and technical equipment were tested on the case of large farms situated in less favoured areas (LFA) in the Czech Republic. Large LFA farms were found to be undoubtedly more efficient than the small ones. The diversification of activities (to non-agricultural) was much wider at large than at small farms. The targeting of the objectives of the LFA measure was analysed on the cases of the selected types of small and large farms. The amounts of support devoted to reach these objectives were also evaluated. The paper further analyses economic results of small and large farms in LFA within the Czech Republic, and evaluates the impacts of the current LFA measures, where the payment distribution is based only on the grassland area, regardless of the farm size. Based on these analyses, it was suggested to distribute the LFA payments in the CR per 1 ha of utilised agricultural area of farm. It would be suitable to introduce a graded decrease of the LFA payments rates according to the farm size. The analysis proves that the economic survival of large farms, measured as the farm net value added per one annual work unit, will not be endangered.
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