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Articles - year 2020

Comparison of the energy and economic balance of crop production

The article deals with the connection between energy and economic indicators of crop production in the Czech Republic. Herein, a procedure for the determination of energy inputs and outputs from production based on soil-climatic conditions was outlined. For basic arable crops, other possibilities using the production in the energy sector as well as in relation to soil-climatic conditions were evaluated. The article reviews the production and economic parameters of crop production for potential energy use, such as natural production, energy production, electricity and operational profit. The maximum production parameters are achieved by sugar beet and, consequently, maize for silage. Other energy-efficient crops are alfalfa and clover, but with technological problems in processing of existing biogas technologies. The relationship of production results with production conditions shows that energy use of crops is more appropriate in marginal areas, as the margins for energy purposes are approximately constant, while for food purposes in marginal areas, it decreases. The different economic characteristics of crops for food purposes are mainly owe to higher quality production in lower areas, which is reflected in the price of production.

Havelka, F., Hruška, M., Voltr, V.

Agricultural Engineering International: CIGR Journal, Volume 22, Nr. 3, p. 138-150. ISSN 1682-1130

https://cigrjournal.org/index.php/Ejounral/article/view/5502

 

 

Determination of Energy Thresholds Based on Energy Equivalent in Crop Production for Economic Return on Biogas Production

The article evaluates the economics of electricity generation in biogas plants based on the analysis of gross annual rental effect and energy yield of crops. The evaluation of the database of crops has shown that the crop most suitable as biogas plant substrate both in terms of economics and energy generation is the fodder sorrel. Ranking among other suitable crops is sugar beet, extensively grown grass, clovers, rye and silage maize. Because of the maximum energy yield, the most suitable is fodder sorrel and silage maize since they generate maximum yield per hectare. The economic analysis of the operation of biogas plants indicates that the guaranteed feed-in tariff for electricity is currently above the minimum 10% profit in biogas plants with the capacity above 200 kW. When sorrel is used as a substrate and its growing technology is well managed, the guaranteed price for 1 kWh may be reduced by almost 50% while maintaining the 10% profit. The technology of sorrel growing, however, has not been well managed in practice. The existing feed-in tariff of electricity is reflected in better economic results of farms with biogas plants, the net added value of which has increased by up to 200 EUR per hectare. Higher subsidies of electricity feed-in tariffs lead are accompanied also by higher price of inputs which is taken advantage of by non-agricultural suppliers and customers. Small biogas plants with the capacity below 200 kW are not competitive with regard to the use of substrates from agricultural crops, but it is assumed that they can better utilize the biological wastes from farming and thus achieve lower prices of inputs.

Dereník, P., Hruška, M., Voltr, V.

Agrotechnology, Volume 9, Nr. 2, p. 1-10. ISSN 2168-9881

https://www.longdom.org/archive/agt-volume-9-issue-2-year-2020.html

 

 

 

Do the subsidies help the young farmers? The case study of the Czech Republic

To ensure the generation renewal in the European Union there are subsidies for setting up of young farmers' businesses and the retirement scheme and top-up direct payments. In the Czech Republic are provided subsides to interest rates with preference of young farmers and intergenerational succession of the farm is tax-free. Together with other incentives, those factors shall facilitate enter of young people to the sector. The aim of the paper is to assess whether the policy measures help the young farmers with setting-up of their business. Based on the primary survey on 510 young Czech farmers the most motivating for enter the sector were tax relief on transfer of the holding and top-up payment for young farmers. The farmers without background considered as sufficiently motivating the top-up payments more often than those with certain background who acknowledged more the top-up subsidies. Possible way how to facilitate the enter to the sector could be to keep the tax relief on farm transfer, to combine the measures for retirement and setting up of young farmers and provide investment subsidies or financial instruments for start-up. Top-up payments, despite motivational according to the farmers, are criticized as inefficient.

Šimpachová Pechrová, M., Šimpach, O.

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Volume 68, Nr. 1. p. 255-262. ISSN 2464-8310

https://acta.mendelu.cz/artkey/acu-202001-0025_do-the-subsidies-help-the-young-farmers-the-case-study-of-the-czech-republic.php

 

 

Drivers of farm performance in Czech crop farms

When analysing drivers affecting the farm performance, the presence of different technologies should be taken into account. We assume that the technology used by crop farms is not the same for all producers and therefore we use latent class model to identify technological classes at first. Class definition is based on multidimensional classification and determination of indices given by the values of individual components. The principal components analysis is applied to estimate significant and robust weights for the index components. FADN (Farm Accountancy Data Network) database, Czech crop farms data from 2005 to 2017 were used and three groups of technology classes of farms were identified with a determinant influence of the structure index and localisation. The other indices characterise sustainability, innovation, technology, diversification, and individual characteristics. Three distinct classes of crop farms were found, one major class and two minor classes. Family driven farms are usually smaller farms in terms of acreage. Highly sustainable crop farms are most likely located in lower altitudes and not in less-favoured areas. Innovative farms are also likely to be more productive. The results indicate that agricultural production farms with a more sustainable way of farming are most likely to be more productive.

Fuksová, Z., Kostlivý, V., Rudinskaya, T.

Agricultural Economics, Volume, 66, Nr. 7, p. 297-306. ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=231_2019-AGRICECON

 

 

 

Externalities in agriculture: How to include their monetary value in decision‑making? International Journal of Environmental Science and Technology

Soil protection and sustainable agriculture have become a key issue in Common Agricultural Policy. Emphasis is being placed on climate-smart agriculture, nature-friendly agricultural technologies and implementation of a range of nature-based measures to protect soil, retain water in landscape, etc. Recent agricultural policy is mostly based on qualitative assessment of the current state and impacts of technologies. Economic assessment is still missing, although subsidies and other forms of financial support are provided from both national and European Union funds. Externalities in agriculture not only generate social costs and profits for the current generation but also strongly affect future well-being. The objective of this paper is to present a newly developed approach that enables monetary assessment of externalities in agriculture. The process of monetary assessment means inclusion and calculation of all costs and benefits, including positive and negative externalities going beyond financial revenue. The methodology is based on modified cost–benefit analysis using the concept of ecosystem services. The proposed method is demonstrated on a case study in the South Moravian Region of the Czech Republic. This region has been struggling with drought in the last few years, but its agricultural technologies are not adapted and appropriate nature-based solutions are not implemented. Economic analysis focuses on assessment of externalities and possible measures. It covers operating and investment costs; the loss of profits due to decreasing production; and benefits consisting mainly of prevented loss of regulating services. The results show that implementation of measures is always preferable regardless of climate change and avoids society loss.

Trantinová, M., Macháč, J., Zaňková, L.

International Journal of Environmental Science and Technology, Volume, 18, Nr. 1, p. 3-20. ISSN 1735-1472

https://link.springer.com/article/10.1007/s13762-020-02752-7

 

 

Farm outcomes based on cluster analysis of compound farm evaluation

The purpose of this paper is to examine the internal structure of Czech agricultural holdings based on a multicriteria evaluation of the five dimensions representing the main functions of agriculture including production, economic factors, financial stability, environmental, and social and other factors. A cluster analysis was performed to identify two clusters of farms. The first cluster consists of smaller holdings that specialize in livestock production and achieve poorer financial results compared to the second cluster, which includes a larger share of large holdings that focus on crop production. The first cluster exhibited better performance as regards environmental protection and financial stability. In contrast, the second cluster achieved better scores regarding production and economic factors. However, an evaluation of all dimensions showed that the second cluster of farms obtained slightly better ratings (2.7% above the overall average) then the first cluster (3.1% below the overall average score). It is up to policy makers to decide which group of farmers, is more approaching the aim of the new agricultural policy. Policy makers can consider the results of this study to find the areas where the sustainability rate should be increased and purposefully promote that by specific measures to achieve balanced farming system.

Hloušková, Z., Lekešová, M.

Agricultural Economics, Volume 66, Nr. 10, p. 435-443, ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=273_2020-AGRICECON

 

 

Fostering resilient agro-food futures through a social-ecological systems framework: Public-private partnerships for delivering ecosystem services in Europe

In recent decades, various public policies have targeted agriculture and forestry's relationship with environ-mental protection and management. Among environmental policy communities the approach is increasingly framed through the theoretical concepts of ecosystem services (ES) or public goods (PG). Both offer useful perspectives to enhance understanding, but each only partially reflects the complex inter-linkages between productive land management and multiple environmental and social assets (biodiversity, landscapes, water, soil and air quality, rural vitality, culture and heritage), constraining their capacity for effective policy development. The Social-Ecological-Systems framework (SES), considering both natural and socio-economic elements in complex systems and interrogating these joint production relationships, offers added value in this context. The PEGASUS project1 applied an adapted SES framework to identify the potential complementary and synergistic roles of policy, private and community actors in promoting socially beneficial outcomes, strengthening ecosystem services and sustainability. Two case studies illustrate the analytical process and its ability to connect top down and bottom-up perspectives. This generated an expanded range of options focused on social processes and market development facilitated by an enabling, responsive policy framework. Lessons for governance and practice, as well as international relevance, are briefly considered.

Pražan, J., Berriet-Solliec, M., Depres, Ch., Dwyer, ., Hart, K., Lataste, FG., Short , Ch.

Ecosystem Services, Volume 45, Nr. October 2020, p. 12. ISSN 2212-0416

https://www.sciencedirect.com/science/article/pii/S2212041620301224

 

 

Modelling of Economic Equilibrium in the Agrarian Sector (The AGRO-2014 Model)

The article contains research results of the Institute of Agricultural Economics and Information (IAEI), Praha, for 2015, which focused on the development and use of the AGRO-2014 model. The model contains sections of agriculture, food processing, food retail (including catering without self-sufficiency), total food consumption (including catering and self-sufficiency) and food consumption per capita (in the detailed structure permitting nutritional evaluation). AGRO-2014 is a Leontieff’s matrix-type model with a range of about 1,200 commodities. The model was used to calculate the total income and expenditure in the agrarian sector, to estimate the significance of imports and exports in this sector and to calculate an estimate of the trade margins on domestic and imported foods in the Czech Republic. Six variants of model simulations were calculated to calculate the coverage of the food consumption by the population in different sizes of the food exports and imports. Further on, the range of the trade margins on domestic and imported foods were analysed for 2007-2013. Model calculations did not confirm a hypothesis that market chains discriminate the Czech food against foreign competition.

Foltýn, I., Mrhálková, I., Štiková, O., Zedníčková, I.

Rural Areas and Development, Volume, 2016, Nr. 13, p. 63-75. ISSN 2657-4403

https://ssrn.com/abstract=3715364

 

 

Modelling of Impacts of the Agricultural Sector on the National Economy of the Czech Republic

Continuous efforts to predict what is the most likely development and importance of the agricultural sector are being made in the long-term perspective. To this end, EAA prediction models (SZU-P1 and SZU-P2) were constructed, and coupled with a model that describes the importance and linkages of the agricultural sector to other sectors within the national economy of the Czech Republic (HDP-1 model). The models described below can be used for measuring and simulation of impacts of the agricultural sector with downstream and upstream industries on the Czech GDP, but also monitoring flows and linkages of the total agri-food industry complex on the national economy.

Foltýn, I., Chaloupka, O.

Rural Areas and Development, Volume, 2016, Nr. 13, p. 37-48. ISSN 2657-4403

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3715338

 

 

Multicriteria assessment of Czech farms

This paper describes a methodology for assessing farms that considers the multi-functionality derived from the requirements and expectations of the agricultural sector. To this end an original, multicriteria method was developed for assessing farms based on their individual data. Five dimensions were assessed (production, economic, financial stability, environmental, social & other), representing the most important aspects of farming. The overall assessment based on these five dimensions aims to express the total sustainability rate of the farms. The methodology used to develop this assessment is described. The results of the assessment for 2016 are presented and classified according to various factors and are linked to other important indicators. The data used is from the Farm Accountancy Data Network database in the Czech Republic.

Hlaváčová, M., Hloušková, Z., Lekešová, M., Pánková, L.

Agricultural Economics, Volume 66, Nr. 3, p. 101-111. ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=193_2019-AGRICECON

 

 

Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints

The redesign of the Common Agricultural Policy (CAP) allows for more room to address issues related to stabilising farmers’ income and developing their viability in areas facing natural constraints (ANC). Maintaining income levels, developing farm economies in rural areas, and encouraging competitive agricultural practises are the challenges facing the new CAP. ANCs in the Czech Republic are characterised by a lower level of income compared to areas outside ANCs and their generally prevailing specialisation in livestock production, which has been facing a relatively turbulent development in the last decade. The main aim of this paper is to evaluate the economic viability with regard to the level of natural disadvantage and with regard to farm specialisation. The database of Farm Accountancy Data Network (FADN) was used for assessment; the authors built the Farm Economic Viability indicator, which is based on modified Farm Net Value Added. The differences between the farm groups were tested through analysis of variance. Significantly lower viability was found in ANCs compared to farms outside ANCs. Field crops achieved significantly higher levels, both in and outside ANCs. The most threatened group of farms are grazing livestock in ANCs.

Hlava, T., Hloušková, Z., Špička, J., Štolbová, M.

Agricultural Economics, Volume, 66, Nr. 5, p. 193-202. ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=327_2019-AGRICECON

 

 

The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges

This study focuses on milk producer organisations (MPOs) acting in the Czech Republic, examines in counterfactual design economic benefits of MPO members, explores the expectations and satisfaction of farmers with services provided by MPOs and discusses changes in MPO strategies in response to market developments. The economic benefits were evaluated econometrically using a direct matching method, while for the assessment of MPOs services and strategies we designed a survey among the members which was complemented by interviews with managers of the three largest MPOs. The results confirm positive economic benefits for farms and rather high farmers’ expectations and also satisfaction with the MPOs activities. However, while farmers, put most emphasis on common roles as price bargaining and securing sales, the MPO managers show future-looking approaches to strategies referring to consumer environmental and health concerns or vertical collaboration along the value chain.

Bošková, I., Adaho, S., Ratinger, T.

Agricultural Economics, Volume 66, Nr. 8, p. 345-354. ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=2_2020-AGRICECON

 

  

Trade-off between the economic and environmental sustainability in Czech dual farm structure

Agricultural holdings select goals in various areas when setting their strategic objectives. Economic objec- tives tend to be viewed as strategic because of the requirement to maximise economic profit for the owners. Since there is significant interaction between agricultural holdings and the environment, it is also important to monitor the envi- ronmental aspects of farming. The article seeks to draw on unique multicriteria assessment to compare the compat- ibility of economic and environmental objectives at 1 189 agricultural holdings in the Czech Republic, broken down by farming specialisation and economic size on the basis of figures from the Farm Accountancy Data Network (FADN). A trade-off between environmental sustainability and economic performance occurs primarily among farming speciali- sation categories, where we found two extremes - intensive field cropping with high economic performance and low en- vironmental sustainability, and, at the other end of the scale, extensive cattle farming with lower economic performance and high environmental sustainability. Within the farming specialisation categories, however, there was no significant correlation, with the exception of milk production, where the use of soil organic matter, a higher proportion of soil improving crops (for fodder) and greening made a positive contribution to the higher economic performance of farms.

Macháčková, J., Špička, J., Vintr, T., Aulová, R.

Agricultural Economics, Volume, 66, Nr. 6, p. 243-250. ISSN 0139-570X

https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=390_2019-AGRICECON

 

 

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