FADN utilization for state administration and VZE research

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FADN utilization for state administration and
VÚZE research

• Ladislav Jelínek, Tomá Medonos VÚZE team
• Research Institute of Agricultural Economics

Prague, VÚZE, 17. 04. 2008
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Objectives

• To show possibilities of FADN exploitation
• To present examples of outputs from realized
  research

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FADN from a research perspective

• fundamental source of information for VÚZE
  research and common tasks in particular
  in the field of
• farm economy,
• social situation,
• (partially) structural aspects.
• On-line access to aggregated data
• Data on farm level the most exploitable
• As a single or complementary database to specific
  survey (synergy effect).

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What are analysts interested in?
FADN
Physical and monetary units
Cost data for commodities Separated in 2006
Farm-level data
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Several classification criteria of FADN usage

• - Micro
• - Macro analysis (extrapolation)
• - Analysis of the state
• - Policy impact analysis
• - Projections
• - Income (wealth) analysis
• - Productivity and efficiency analysis
• - Structural analysis
• -

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Overview of the tasks in which FADN database has
been used
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1. Descriptive analyses (Green report, other
tasks)
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Green report 2007
1. Descriptive analyses
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Green report 2007
1. Descriptive analyses
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Green report 2007
1. Descriptive analyses
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1. Descriptive analyses
Cost analysis
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Distribution of unit costs in milk production
(CZK/l)
1. Descriptive analyses
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2. Productivity and efficiency analysis
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2. Productivity efficiency analyses
FAO project competitiveness (1998)
Wheat - PAM indicators (1997)
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IDARA competitiviness, farm diversification
rural development in CEEC (2000-03)
Productivity and efficiency in CZ (FADN 1999)
2. Productivity efficiency analyses
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2. Productivity efficiency analyses
KATO Structural changesefficiency (2002)
Source Curtiss, J. Effeciency and structural
changes in Czech agriculture, 2002
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2. Productivity efficiency analyses
KATO Structural changesefficiency (2002)
Source Curtiss, J. Effeciency and structural
changes in Czech agriculture, 2002
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Relation between TE and size of dairy herd
2. Productivity efficiency analyses
Efficiency before EU accession
Technical efficiency index
Number of dairy cows per farm
Source Jelínek, L. Technological change and
technical efficiency in Czech dairy sector, 2007

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Relationships among credit constraint, fin.
performance, TE
2. Productivity efficiency analyses
Credit constraint in the Czech CF (1995-03)
Source Medonos, T. Investment activity and
financial constraint of Czech corporate farms,
2007
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2. Productivity efficiency analyses

• IAM 2001-03 (156 Corp. farms)
• Farms breaking down according to TE
• farms with lower TE, worse fin.performance,
  smaller (Assets) have more limited access to
  credit

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Ownership structures and performance
2. Productivity efficiency analyses
In cooperation with IAMO IPTS
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Multicriterial Performance Assessment
0
1
2
3
4
5
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2. Productivity efficiency analyses
Weighted ranking, 6 weighting schemes
Cluster 1
Cluster 4
Cluster 5
P1 Value added incl. operational
subsidies/total assets P2 P1 without
operational subsidies LP Labor productivity
(Tatal revenues/AWU) LQ Liquidity IN
Investment activity (Total investment/tangible
assets)
Cluster 6
Cluster 3
Cluster 2
1
2
3
4
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Multicriterial Performance Assessment
0
1
2
3
4
5
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2. Productivity efficiency analyses
LTDs simple ownership structure (4 owners) high
ownership concentration low agency problems
debt rather than equity (small size) -gt Low
transaction cost of organization rather than high
economies of scale
Cluster 1
JSCs established later in transition large size
(number of owners), high share of external
ownership, low transf. indebtedness -gt Equity
rather than debt (afraid of the eligible persons
legal power) -gt Economies of scale companies
Cluster 4
Similar to cluster 4, however significantly
larger and diversified in non-agricultural
productions -gt Economies of scale and scope
companies
Cluster 5
Smaller (mostly) coops relatively high owners
share on own equity, lower transf. indebtedness
-gt instrument to maintain good agency
relationships -gt Low agency cost LMFs
Cluster 6
Coops large size, dispersed ownership (high
share of working members) high agency problems
small ownership shares (low deposit for
membership) high transf. indebtedness -gt Low
transformation stage companies
Cluster 3
Mostly coops signif. lower transf. indebtedness
low number of owners with relatively high capital
shares (high min deposit) high agency problems
gt Low debt LMFs
Cluster 2
In cooperation with IAMO IPTS
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3. Typology of farming systems
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IDEMA project typical farms
3. Typology of farms
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ESTO project farming systems (2003-04)
3. Typology of farms
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ESTO project farming systems (2003-04)
3. Typology of farms
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4. Impact analysis done for Ministry of
Agriculture
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4. Impact analyses
Farm profitability by farming practices
(income/costs)
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Projection of subsidies by farm location (CZK/ha)
4. Impact analyses
Note TU top-ups (national direct payments)
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Projection of farm income by farm location
(CZK/ha)
4. Impact analyses
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Projection of subsidies by specialisation
4. Impact analyses
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Impacts of modulation degresivity (2007)
4. Impact analyses
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Indicators of total sustainability 2013 (CZK/ha)
4. Impact analyses
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LFA payments in farm economics(FADN 2005)
4. Impact analyses
Contribution of LFA payments in GVA (CZK/ha)
GVA w/o subsidies
Subsidies
LFA payments
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Saxony project competitiveness (2004)
2. Productivity efficiency analyses
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IDEMA project (2004-2007)
4. Impact analyses

• The Impact of Decoupling and Modulation
  on Agriculture in Enlarged Union, 6 FP EU
• sectoral (ESIM) and regional farm level
  assessment based on FADN data (AgriPoliS)
• FR, D, GB, SE, IT, SK, LT, CZ Vysocina
• 1 reference 3 alternative policy scenarios
• Pre-Accession (Accession, SAP, Bond scheme)
• farm structure development (IFCF, special.,
  production)
• income situation employment in agriculture
• land rental market land usage, land rental
  prices
• investment financing
• environmental impacts biodiversity, landscape

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IDEMA - results
4. Impact analyses
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4. Impact analyses
IDEMA - results
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5. Multicriterial assessment of agriculture
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5. Multicriterial assessment
Analysis of prosocial behaviour of CF
Efficiency Determinants
In cooperation with IAMO IPTS
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5. Multicriterial assessment
Multicriterial assessment of multifunctionality
in the Czech agriculture (2003-05)

• Based on 3 axises
• Economic performance
• Relationships to environement
• Relationships to rural areas

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5. Multicriterial assessment
Weighted deviation from average CR, 2003 - 2005
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5. Multicriterial assessment
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Conclusions

• FADN important source of data for VÚZE tasks
• Requirements for representativeness at
  regional level
• Researchers need to work with data at the level
  of farms (access to individual data)
• to analyse and explain variability of economic,
  environmental and social events in farms
  (agricultural sector)

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Thank you for your attention!
Futher information about VÚZE tasks
see http//www.vuze.cz/index.asp?lgen -
projects - publications