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Adjustment and Differences in Farm Performance - a Farm Management Perspective from the Netherlands

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  • Poppe, Krijn J.
  • van Meijl, Hans

Abstract

There are differences in performance between farmers. In the Netherlands this has been a major topic of research for at least 30 years. Research has shown that the managerial capacities of farmers play a major role in differences in economic and environmental performance. Management can be measured and the optimal level is not the maximum level. Farmers differ in their objectives, competences and local external situation and therefore their strategies. These strategies can be identified. In recent years strategic management has become more important and this can be supported with consultancy. Farmers also differ in their adoption and innovation behaviour. These micro economic results, that correlate with large differences in income and high prices of fixed assets with a limited supply, can be explained as being consistent with economic theory on perfect markets. Although these findings suggest that some farm households have attractive strategies that can cope with policy adjustments, the research supports the hypothesis but does not (yet) prove that a severe adjustment of agricultural policy e.g. towards a more market oriented policy, induces more innovation, and that due to this innovation the effects of adjusting the agricultural policy are less severe then ex-ante estimated with current dynamic policy models.

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Bibliographic Info

Paper provided by International Agricultural Policy Reform and Adjustment Project (IAPRAP) in its series IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA with number 15765.

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Date of creation: 2004
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Handle: RePEc:ags:iapr04:15765

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Web page: http://agadjust.aers.psu.edu/

Related research

Keywords: adjustment; income differences; innovation; farm management; performance; Farm Management;

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  1. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
  2. Breembroek, J. A. & Koole, B. & Poppe, K. J. & Wossink, G. A. A., 1996. "Environmental farm accounting: The case of the dutch nutrients accounting system," Agricultural Systems, Elsevier, vol. 51(1), pages 29-40.
  3. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
  4. Paul Diederen & Hans van Meijl & Arjan Wolters, 2003. "Modernisation in agriculture: what makes a farmer adopt an innovation?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 2(3/4), pages 328-342.
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