Liaison Agency FADN CZ participates in the research and development activities of the Institute of Agricultural Economics and Information (IAEI). Liaison Agency FADN CZ is also a member of the IAEI research program board.
The following text summarizes projects of FADN team.

 

 

National projects:

Applied Research Program of the Ministry of Agriculture for 2017-2025, ZEMĚ

“Duality in Czech Agriculture: Advantage or Disadvantage for New Generation Agriculture?”

QK1920398, 01/2019–12/2021

The representatives of the Liaison Agency FADN CZ are members of the research team (CULS, IAEI).

Main objectives are: i) to carry out the detail analysis of productivity, efficiency and their sources according to the size distribution and output specialisation of farmers. (ii) to identify the level of natural sustainable input use and the potential of sustainable agricultural growth including the evaluation of the weather impact on productivity and efficiency. (iii) to analyse the profitability and its sources according to the size distribution and output specialisation of farmers. (iv) to analyse the relation between productivity and international trade. (v) to develop a tool for analysing and evaluating the impact of current and future agricultural policies.

 

 

Internal projects managed by FADN team:

 

Extension of environmental indicators in FADN survey (start in 2019)

The FADN survey includes information about economy and production of agricultural holdings. The management evaluation is based on the collected data. Current FADN form includes the limited information about farm activities related to sustainable farming. Development of sustainable agriculture is an important topic in many European countries and it is closely associated with the progress in European common agricultural politics. The aim of the project is to conduct extended research of environmental indicators in literature and to propose several new indicators usable for FADN purposes. New indicators should help to better understanding and allow extension of farm management evaluation.

 

SMART FADN (start in 2018)

The aim of multi-year project is to create the new system of collection and managerial use of FADN data, so called Smart FADN. Innovative solutions of collection and use of FADN data will use new technologies. To alleviate the burden on farmers and increase their motivation to participate in FADN survey, it is necessary to use the available information from other administrative sources and to find new opportunities how to simplify data collection using digital and information technologies. The aim of the whole project is to create new software in the coming years, which should facilitate and streamline the existing data collection process.

 

Analysis of factors influencing a farm performance (2018-2019)

The aim of the project is to analyse the correlation between the characteristic of agricultural holdings and their performance and enable more accurately anticipate reaction of farmers response to planned agricultural policy measures.

Using data of FADN survey, the descriptive analysis of the characteristics of agricultural holdings through selected indicators such as farm size, specialization, income diversification, agroecological characteristics, input ratios, level and support structure of farms was done. Based on the selected clusters agricultural holdings were identified by the type of farming, level of the selected focus group and an analysis of factors affecting farm performance was carried out. Method used for determination of indexes based on the values of individual components (PCA - Principal Component Analysis), classes definition based on multidimensional classification (LCM - Latent Class Model) and efficiency estimates (SFA - Stochastic Frontier Analysis) are related to the international project of OECD „Drivers of Farm Performance”, led by Johannes Sauer from Technical University of Munich.

In the second year, the solution is aimed at completing an empirical analysis of farm transfer between the classes, verifying the easier functional form, changing the specification in relation to unobservable heterogeneity, verifying the insertion of some index components that determine the technology class as parameters of the estimated production function. Within the scope of the solution in 2018, three separate classes of enterprises were identified with determining influence of structure (determined by the share of unpaid and paid work, acreage and form of ownership) and location (LFA, altitude). The outcome of the project envisages the completion of an empirical analysis, an assessment of the main factors characterizing the various technology classes, including subsidies, and determining factors for the transfer of farms between classes in the period under review.

Presentation of results:
„Drivers of farm performance in Czech crop farms”, OECD Farm-level Analysis Network, 22nd-meeting-FLA-16 November 2018,
 Session 2: Drivers of farm performance.

 

Multi-criteria evaluation of farm management (2016-2019)

The multi-year project is focused on a difficulty during the process with multidimensional evaluation, where different perspectives on the function of agriculture are used. These aspects can be in harmony, on the other hand their aim could be different. These aims are related to production and economic results versus social and environmental objectives. To achieve a sustainable development of agriculture, it is necessary to ensure a balance between these areas. The determination of this balance is not straightforward and is very complicated issue. The aim of this project is to be aware of not only individual dimensions but also their mutual correlation to the final assessment. In the final multi-criteria evaluation of agricultural holdings, the areas of production, economic, financial stability, environmental and other (including social functions) are involved in order to establish a fair assessment of the activities of agricultural holdings in the tendency of sustainable agricultural development. The project aims on developing a methodology of multicriteria assessment based on FADN data. As part of the solution of the multicriteria evaluation of agricultural enterprises, a complete methodological procedure was incorporated, and a separate database was created with the calculation of the multicriteria evaluation from 2014. The results are published via the FADN PUBLIC application/FARMER module, which allows public access to FADN CZ database.

 

Technical efficiency of organic farming (2015-2017)

FADN database is a unique source of representative economic data for organic farming. Within the three-year project, the panel data of the FADN survey were used to analyse the technical efficiency of organic farms.

The project has presented outcomes of productivity and the efficiency of those farms from several points of view. It was focused on management method, type of farming and economic size. The solution contributes to the discussion on the development of the competitiveness of organic farming.

In the first year of the project, a methodological procedure of calculations was defined, and a database has been created. The economic sustainability of the 2011-2014 period was assessed comparing results of conventional and organic farming.

In the second year, the research team focused on the technical efficiency analysis for the extended analysis period 2011-2015. In the methodological solution were used the indexes of the change in the total factor productivity (TFP), which were determined using the DEA Malmquist method. DEA was performed on a sample of panel data of 440 enterprises representing the livestock type of production, of which 114 organic farms.

An impact of support on the economics of organic farms was investigating in the third year of project. The aim was to assess the ability to increase productivity, growth potential and efficiency and productivity trends of organic farms according to type of farms based on FADN 2011-2016 data.

Impact of support on economics of organic farms and analysis of technical efficiency were assessed in variants using non-parametric method of Data Envelopment Analysis (DEA) and with application model of the Stochastic Frontier Analysis (SFA) distinguishing farm types groups following the project solution from 2016.

 

Results published:

Technical efficiency and its determinants for Czech livestock farms, Agricultural Economics – Czech, 65, 2019 (4): 175–184 Original Paper

Farms Productivity Developments Based on Malmquist Production Indices, Agris on-line Papers in Economics and Informatics

Ekonomika chovů ovcí a koz v ekologickém zemědělství, Náš chov 8/2017, str. 49-53

 

Prediction of the Czech agricultural sector results on the basis of FADN database (2013-2015)

Within the project, a methodological approach the farm economic results prediction was proposed.  FADN CZ database is used to evaluate the economic situation of farms, which also serves as a basis for calculations of predictions and estimates. The predictions are processed one year prior to official publication of the real result of the year in question.

Another practical outcome of the project for farmers the project is development of financial analysis indicators. Financial analysis of legal entities is based on financial statements. The financial analysis of individual persons is derived from specific items of FADN CZ questionnaire. Complete financial analysis outputs are also electronically available to companies participating in FADN survey.

FADN data are strictly confidential. For this reason, only aggregated results (group averages) can be published. Farmers have access to their own individual data only through security system after registration.

To make the results available to agricultural farmers participating in FADN CZ survey, a modular access to FADN CZ database, FADN PUBLIC on-line software application (https://public.fadn.cz), was used. The FARMER MODULE, dedicated only to surveyed farmers, allows to farmers to view their own data from the survey questionnaire and they can also take advantage of many other available options, such as an overview of advanced indicators, comparison of their own results with the average results of a selected group of farmers, financial analysis, time series results, or predicted results.

 

Results published:

Comparison of Agricultural Costs Prediction Approaches, AGRIS on-line Papers in Economics and Informatics, 2018, Vol. 10, No. 1, pp. 3-13.

Microsimulation Model Estimating Czech Farm Income from Farm Accountancy Data Network Database, AGRIS on-line Papers in Economics and Informatics, 2014, Vol. 6, No.3.

 

 

FADN cooperation on other internal IAEI projects:

 

Modelling of farm viability in areas with natural constrains (ANC) of the Czech Republic (2017-2019)

The aim of the first year of the project was to analyse the viability of farms in areas with natural constrains (ANC) of the Czech Republic with a focus on farm economies categorized by type of farming and identification of the impact of ANC payments in these groups. Another view of the results was the classification according to the farm land acreage, which resulted in new findings on problem of degressivity of ANC payments. The second year of the project focused on a detailed analysis of the viability of farms in ANC areas of the Czech Republic, in particular the analysis of individual indicators, a multi-dimensional view of viability and the detection of suitable predictors of viability. The project aims to strengthen the methodology of assessing viability in predictive modelling and to develop simulation tools. Third year of research is focused on development of modern approaches to predictive modelling of farm viability in ANC areas of the Czech Republic.

 

Modelling the impact of LFA policy changes on farm economy (2016)

The FADN CZ Liaison Agency closely cooperated on preparation of LFA (now ANC) measures changes under the Rural Development Program 2014-2020. The project was focused on evaluation of the impact of changes in LFA payments on the farm economy. The aim of the project was to define and analyze the links between variables that are included in the impact assessment using statistical methods in the area of quantitative dependence analysis.

 

Evaluation of the effects of structural support under the axis I of the Rural Development Programme 2007-2013 (2012 – 2015)

Support of investment activity has been considered as an important tool for the development of the competitiveness of European agriculture. Rural development program for 2007-2013 included a series of investment measures aimed at modernization in the agriculture and forestry sectors, adding value to agricultural, food and forestry products, or diversification of non-agricultural production. Intention was to quantify the real causal effects of the support compared to a contrafactual situation without intervention, on the supported firms, especially on their economic performance, and other non-economic benefits that follow from the granted structural support to agricultural firms in a longer horizon and to give support for the decision-making about the conditions of this measure.

 

The territorial dimension of farm diversification (2014)

The main objective was to analyse the territorial differentiation of Czech agriculture and elucidate the prerequisites for farm diversification from the regional perspective. Differentiation of Czech countryside and agriculture was analysed, typology of Czech countryside and socio-economic typology of Czech agriculture were created based on indicators of employment in agriculture and importance of livestock production. The territorial importance of farm diversification was assessed on the basis of agricultural typology and using various data sources (CZSO, SZIF, FADN).

 

The problem of support in less favoured areas (2013-2014)

The aim of the project was to improve LFA delimitation in the Czech Republic in an EU context and to process the methodology for determining the impact of natural constraints into the economy of farms.

Among the outcomes are proposal for the future LFA delimitation and proposal for compensation of farms in these regions farming.

 

  

   


© ING. JOSEF HANIBAL FADN CZ

vs  25.09.2019