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Performance of dairy farms in Finland and Norway from 1991 to 2008

Author

Listed:
  • Timo Sipiläinen
  • Subal C. Kumbhakar
  • Gudbrand Lien

Abstract

Agriculture and agricultural policy in Finland and Norway have shared many common features in the past, except that Finland joined the European Union in 1995. In this article, we examine profitability and productivity dynamics in Finnish and Norwegian farms during the period 1991 to 2008. Our analysis draws on a decomposition of profitability change into various sources. The results provide evidence that the stronger liberalisation of agricultural policy in Finland has provided greater flexibility for farmers to change and thus has created better scope for productivity and profitability improvements compared with Norway. , Oxford University Press.

Suggested Citation

  • Timo Sipiläinen & Subal C. Kumbhakar & Gudbrand Lien, 2014. "Performance of dairy farms in Finland and Norway from 1991 to 2008," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(1), pages 63-86, February.
    • Handle: RePEc:oup:erevae:v:41:y:2014:i:1:p:63-86
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    File URL: http://hdl.handle.net/10.1093/erae/jbt012
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    Citations

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    Cited by:

    1. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    2. Malikov, Emir, 2016. "Estimating Multi-Product Production Functions and Productivity using Control Functions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235108, Agricultural and Applied Economics Association.
    3. Toba Stephen Olasehinde & Fangbin Qiao & Shiping Mao, 2022. "Performance of Nigerian Rice Farms from 2010 to 2019: A Stochastic Metafrontier Approach," Agriculture, MDPI, vol. 12(7), pages 1-13, July.
    4. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    5. Eric Njuki & Boris E Bravo-Ureta & Víctor E Cabrera, 2020. "Climatic effects and total factor productivity: econometric evidence for Wisconsin dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(3), pages 1276-1301.
    6. Kryszak, Łukasz & Herzfeld, Thomas, 2021. "One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 67(11), pages 445-456.
    7. Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiencyand productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(1), pages 15-28.
    8. Ramsbottom, George & Horan, Brendan & Pierce, Karina M. & Berry, Donagh P. & Roche, John R., 2020. "A case study of longitudinal trends in biophysical and financial performance of spring-calving pasture-based dairy farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, April.
    9. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.
    10. Ioannis Skevas, 2023. "A novel modeling framework for quantifying spatial spillovers on total factor productivity growth and its components," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1221-1247, August.
    11. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    12. Jean Joseph Minviel & Timo Sipiläinen, 2018. "Dynamic stochastic analysis of the farm subsidy-efficiency link: evidence from France," Journal of Productivity Analysis, Springer, vol. 50(1), pages 41-54, October.
    13. Efthymios G. Tsionas & Subal C. Kumbhakar & Emir Malikov, 2015. "Estimation of Input Distance Functions: A System Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1478-1493.
    14. Zdenka ZAKOVA KROUPOVA, 2016. "Profitability development of Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 269-279.
    15. Jerzy Marzec & Andrzej Pisulewski, 2017. "The Effect of CAP Subsidies on the Technical Efficiency of Polish Dairy Farms," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 9(3), pages 243-273, September.
    16. Kumbhakar, Subal C. & Li, Mingyang & Lien, Gudbrand, 2023. "Do subsidies matter in productivity and profitability changes?," Economic Modelling, Elsevier, vol. 123(C).

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