Determinants of farm profitability in the EU regions. Does farm size matter?

نویسندگان

چکیده

Farms in the European Union come a wide variety of sizes and effect farm size on profitability (return assets – ROA) has not been sufficiently investigated. The principal goal this paper, therefore, is to study determinants using panels Farm Accountancy Data Network (FADN) farms different economic between 2007 2018. We use function based ratios that show production financial management strategies used by farms. also analyse impact subsidies under Common Agricultural Policy (CAP). To deal with endogeneity, we run dynamic panel models system generalised method moments (sys-GMM) estimators. highlight important role high level equity turnover. An increase relative farm's plays crucial growth for all groups farms, but it especially smaller entities. In addition, managers should control debt since debt-to-asset ratio highly significant negative determinant most groups. subsidy rate generally translates into higher ROA, variable across largest holdings.

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ژورنال

عنوان ژورنال: Zem?d?lská ekonomika

سال: 2021

ISSN: ['0139-570X', '1805-9295']

DOI: https://doi.org/10.17221/415/2020-agricecon