Articles - year 2013

The Effect of Heterogeneous Buyers on Agricultural Land Prices: The Case of the Czech Land Market

The paper aims to analyse the effect of different types of buyers on farmland price formation. The buyer-specific price effect is theorised to originate in differences in buyers’ bidding potential, intrinsic farmland and side valuation, as well as in non-uniform terms of trade. We specify a flexible hedonic land pricing model that allows for differences in buyers’ valuation of land characteristics. Data on 579 land sale contracts from five districts of the Czech Republic from 2008-2010 are utilised in the study. The results provide strong evidence of buyer-specific valuation of land productive and intrinsic characteristics, as well as land market conditions. Non-agricultural buyers are observed to significantly overbid agricultural buyers on land location, rather than productive qualities. The geographic and demographic characteristics of areas in which non-agricultural land buyers invest suggest gradual future outmigration from most underdeveloped rural areas. Among agricultural buyers, joint stock companies and cooperatives enjoy major land price discounts, while individual private farms and partnerships face land market access constraints. This observation has important implications for future land allocation and land use efficiency.

Curtiss, J., Jelínek, L., Hruška, M., Medonos, T., Vilhelm, V.

German Journal of Agricultural Economics, 2013, Vol. 62, Issue 2, 116-133, ISSN 0002-1121

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Representativeness of the FADN CZ sample of agricultural enterprises and ways of its verification

Following accession to the European Union, Czech Republic joined the EU FADN system. The Farm Accountancy Data Network (FADN) is the main EC information source on real economic situation of agricultural enterprises. It is a sample survey of individual farms and legal entities from the primary farm production domain and it supplies very detailed information on economic results. Representativeness, i.e., the degree of correspondence of sample information with population information in all relevant parameters except for size, is the priority requirement on sample surveys. The aim of testing the FADN CZ sample survey representativeness was to verify whether it was possible to draw conclusions on the population from the sample outcomes, in order to assess the whole of agriculture. Czech Statistical Office (CSO) data bases supplied data on the population. The paper deals with statistical techniques and methods suitable for the assessment of representativeness and the extent of sample needed. The actual results of representativeness verification are offered here, based on FADN CZ 2011 accounting year sample survey results. These were obtained in 2012. STATISTICA 10 special package was employed in the representativeness testing exercise. The analysis also offers methodology proposals in order to increase quality of the sample.

Prášilová, M., Procházková, R., Harvilíková, M.

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, Vol. LXI, Issue 7, s. 2639-2648

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Economic Effects of Investment Support of Adding value to Food Products in CZ

The reason for this contribution is need for analysis and evaluation of the support of adding value to food products in framework of the Rural Development Programme (sub-measure I.1.3.1) in the context of the preparation of new documents for the new programming period 2014-2020. Application of research results is the first step to modification of rules for the RDP granting aid for the programming period 2014-2020 in order to be efficient and targeted at food industry in the new conditions. From a methodological point of view the solution is based on counterfactual analysis and identifies the main effects for the food industry using economic indicators. Results show that the supported businesses consolidated their economic position to a certain extent. The investment support has positive impact on financial stability because participants had smaller decrease of profitability than nonparticipants in the period 2007 - 2010. The investment support increases labour productivity. But due to the higher depreciation, as the consequence of investments in fixed assets, the overall effects on economic results are slightly reduced. The author gratefully acknowledge the support of the Ministry of Agriculture – the support came from the institutional support of the Institute of Agricultural Economics and Information (internal research project no. 1262 – “Economic performance of the Czech food processing sector with focus on small and medium enterprises in the context of the measures Rural Development Programme”).

Špička J., Mezera J.

Agris on-line Papers in Economics and Informatics, 2013, Vol. 5, Issue 1, s. 39-49. ISSN 1804-1930

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An assessment of the differentiated effects of the investment support to agricultural modernisation: the case of the Czech Republic

Despite being considered as a key instrument of the agricultural development policy, the investment support has received only limited attention in the Czech economic literature. The objective of this paper is to assess economic effects of the measure 121 “Modernisation of Agricultural Holdings” of the RDP 2007-2013 on the Czech farms. A particular focus is on the distribution of the supports and differentiated impacts of the supports according to the production conditions and farm size. The counterfactual approach is adopted, deploying direct matching algorithm with the treatment of heteroskedasticity. We show significant benefits of the investment support in terms of business expansion (represented by Gross value added) and labour productivity improvements. Analysing the sample of applicants for Measure 121 we show that large farms get much larger support than smaller farms. By splitting the sample by natural conditions and by size we demonstrate that benefits are higher on farms in less favoured areas and on medium-size farms in both the absolute and relative terms. Investigating the changes in bank indebtedness we yield an indication that on average the support mobilised additional resources to finance the sector investment. However, there is no statistically significant increase of bank indebtedness on large farms due to investment support. In turn, it can be interpreted that deadweight is rather high on large farms, while on average the deadweight of the investment support programme is rather low. Thus, the programme can improve its social efficiency if it is targeted to small and medium size farms.

Ratinger, T., Medonos, T., Hruška, M.

Agris on-line Papers in Economics and Information, 2013, Vol. 5, Issue 4, 153-164, ISSN 1804-1930

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Collaboration in the Czech Dairy Chain

In the context of the market deregulation process the EU dairy sector has been reinforced by the Milk Package, comprising a series of measures addressed to producers´ organizations to encourage them to participate in the dairy chain conduct. The aim of the paper is to explore if milk producers organizations in the Czech Republic dispose with characteristics to become supporting element of the sector´s stability and what a potential for the farm economics they may have. The characteristics of a spectrum of organizations are examined and confronted with the business environment using the concept of dairy cooperative model. Most of organisations showed inbuilt transactions related mechanisms which might carry the regulative function, however instead of support they disrupt the chain by bargaining. It is argued for the change of their strategies with a focus on capital involvement in milk processing. Their rational functioning might improve dairy farms profitability.

Bošková, I.

Agris on-line Papers in Economics and Information, 2013, Vol. 5, Issue 4, s. 35-45. ISSN 1804-1930 (Czech University of Life Sciences in Prague)

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Strategies and effects of milk producers’ organisations in the Czech Republic

In the Czech Republic, milk producers’ organisations arose spontaneously from farmers’ initiatives in the late 1990s as a response to the need to secure fair market conditions for dairy farmers. At present, there are 39 milk producers’ organisations operating locally, nationwide or even on the central European markets. The paper aims at a better understanding what market conditions and transaction attributes have favoured the emergence and the success of the Czech milk marketing cooperatives as well as if their current objectives and strategies are sufficient for securing their future success. The methodological approach rests largely in the theory of industrial organisation combined with the new institutional economics. Establishing marketing cooperatives, dairy farmers balanced market power with processing industry. It is showed on six case studies that the Czech milk marketing cooperatives follow traditional objectives (securing sales, fair price and payment discipline); however, their priorities and strategies differ according to their market environment. If the concentration of the dairy industry continues, there will be a need for reconsidering the objectives of milk marketing cooperatives toward a more vertical coordination in the dairy chain.

Ratinger T., Bošková I.

Agricultural Economics, 2013, Vol. 59, s. 113-124, ISSN 0139-570X

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Costs of sugar beet planting in the Czech Republic and international comparison

The paper focuses on costs and yields of sugar beet in the Czech Republic in the context of economic efficiency and competitiveness in the period 2007-2011. The results are based on a sample survey of product costs and yields of agricultural commodities which has been carried out annually by the Institute of Agricultural Economics and Information. The economic efficiency is evaluated using Data Envelopment Analysis method (DEA). The paper also presents international comparison of the cost structure of sugar beet growing based on Agri benchmark Cash Crop network. Based on that, cost and revenues for the individual crops in the “typical farms” are calculated for the various locations. The results show decreasing average cost per tonne of root, especially staff costs, and increasing profitability of Czech sugar beet producers between 2007 and 2011. Most of producers are highly economically effective. However, there is potential in efficiency of material costs and sugar yields. Sugar beet seems to be further irreplaceable in the Czech agriculture.

Janotová, B., Špička, J.

Listy cukrovarnické a řepařské, 2013, č. 7-8, s. 210-214, ISSN 1210-3306


Milk market development

Analysis of the world market impacts on the domestic milk market.

Bošková, I.

Náš chov, 2013, Vol. LXXIII, Issue 1, s. 20-23, ISSN 0027-8068


The extent of animal husbandry in relation to agricultural employment

The decrease in animal husbandry in the Czech Republic has been varied across regions. In many districts, dairy cows or pigs have nearly disappeared. It is possible to anticipate that the diminishing volume of animal husbandry will be accompanied with low levels of agricultural employment and vice versa: above-average levels of agricultural employment will be tied to districts with large volumes of cattle breeding. This hypothesis is tested using the data from the Agrocenzus 2010 survey. The survey is collecting data on animal numbers and numbers of workers in agricultural enterprises.

Drlík, J., Nohel, F.

Náš chov, 2013, Vol. LXXIII, Issue 1, ISSN 0027-8068


Development of production and foregn trade of, and self-sufficiency in vegetale commodity in the Czech Republic – Part I

The article discusses the production, self-sufficiency and foreign trade of vegetables, focusing on three main vegetables types – onion, carrot and cabbage.

Součková, I.

Zahradnictví, 2013, Vol. XII, Issue 10, s. 29-31, ISSN 1213-7596


Development of production and foregn trade of, and self-sufficiency in vegetale commodity in the Czech Republic – Part II

The article discusses the production, self-sufficiency and foreign trade of vegetables, focusing on three main vegetables types – onion, carrot and cabbage.

Součková, I.

Zahradnictví, 2013, Vol. XII, Issue 11, s. 33-35, ISSN 1213-7596


Wie wirksam sind Eigentumsrechte an Agrarland? Das Beispiel der russischen Region Altain in Südwestsibirien

Jelínek, L., Prishchepov, A. V., Ponkina, E.

IAMO Jahresberichte 2014, Leibniz-Institut für Agrarentwicklung in Transformationsökonomien, s. 35-44, ISBN 978-3-938584-77-4

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Impact Assessment of Trim Levels of Mechanization in Company on Yield of Winter Wheat

Yields of winter wheat were investigated in the years 2002 - 2010 along with production factors on 500 plots in the Czech Republic. With the help of standardized yield values for individual soil quality categorized using valuated soil ecological units (BPEJ) was evaluated model with relationship of quality of mechanization and actual yields of winter wheat. Evaluation of standardized yield values was based on more than 1,000 observations yield of winter wheat. Quality of mechanization was expressed using classified of machinery into groups according progressiveness technology used in the soil preparation. To evaluate of selected observations was used also information about the quality of vegetation found in the expert evaluation of workers under the leadership of CRI. To address the dependency of factors determining the quality of mechanization and quality of vegetation regression model was used. The obtained model with quality of mechanization and the depth of tillage is significant. Best category of quality of used mechanization achieved an average yield of monitoring by 0.25 t / ha higher than 2 categories for which was achieved yield of 0.11 t / ha higher than in the third category. The difference in yield of winter wheat depending on the quality of equipment used in tillage reached the national average 0.36 t/ha. Achieved way to evaluate the model using the categorization of income to BPEJ can be used to extrapolate evaluation of machinery used in the Czech Republic.

Voltr V., Froněk P., Hruška M.

Trends in Agricultural Engineering, ČZU, 2013, s. 651-656, ISBN 978-80-213-2388-9


Effect of crop selection on the economy of crop production and quality of the environment

This paper describes approaches to evaluation of production according to production focus. For this purpose, appropriate assembly plants in given soil and climatic conditions, especially from an agronomic point of view and from the point of view of environmental protection are used. The achievable profit in terms of specific production focus differs by up to CZK 1,500 per hectare. The work includes analysis of agricultural land revenues in terms of the focus on the production of cereals, oilseeds and livestock. It analyzes value of returns on agricultural land using BPEJ. Main basis is certified methodology of calculation of the gross annual rent effect, for specific values of inputs of nutrients, plant protection products and technology costs. The model adjusts returns and costs of agricultural crops according to the current price and cost developments. The paper also evaluates the loss of gross annual rent effect due to incorrect sequencing of crops, especially on the basis of reduced revenues. Observed decline in gross annual rent effect due to improper crop rotation sequence may be up to 1900 CZK per hectare. With respect to the protection of the environment functions for nitrogen doses 50, 90, 100, 110 % are evaluated for given soil and climatic conditions. The impact of 50 % dose reduction of nitrogen is in the case of winter wheat on average 600 CZK per hectare. Own choice of production structure affects economic results especially in warmer climatic regions and while intensive production is used.

Voltr V., Hruška M.

Agrarian Perspectives, ČZU, 2013, s. 389-402, ISBN 978-80-213-2419-0

Conference Proceedings 2013 to download


Socio-economic characteristics of farm managers in the Czech Republic

Labour force in agriculture has declined dramatically in Czech Republic since 1989: The number of people working in agriculture in 2012 is only one fifth of that in 1989. Transformation of Czech agriculture caused a departure of many people (often young and well educated) for other sectors. Some previous members of agricultural cooperatives have started to run an agricultural business themselves. Some people who owned agricultural land but had not worked in agriculture (nor had any experience) joined them. It is evident that the general decline of Czech agrarian labour force affected significantly also farm managers. Long-term low rate of inflow of young people leads to a very unfavourable age structure of agricultural labour.

Drlík, J., Spěšná, D.

Characteristics of farm managers in Poland and selected Central-Eastern European Countries, Warsaw 2013, no 84.1, p. 34-46. ISBN 978-83-7658-409-6

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