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Economic and Technical Efficiency in Slovenian Farms by Fadn Dataset

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  • Nicola Galluzzo

    (Association of Geographical and Economic Studies in Rural Areas, Italy)

Abstract

Many of Slovenian farms are characterized by small utilized agricultural areas with direct impacts on the level of farm net income. In order to estimate the economic consequences of financial subsidies allocated by the Common Agricultural Policy (CAP), the European Union has established an annual survey on a sample of farms called Farm Accountancy Data Network. The purpose of this paper was to investigate over time 2004-2013 main relationships among different economic variables and technical and economic efficiency using a quantitative approach by Data Envelopment Analysis. The FADN dataset has been stratified based on the predominant type of farming and comparing between them which is the most efficient in economic and technical terms. Findings have pointed out as high specialized farms such as wine and milk enterprises have efficiency levels close to 100% instead of mixed farms have highlighted the poorest level of efficiency. Summing up, funds allocated by the first and second pillar of the CAP have acted positively and directly on the farm efficiency. The European Union by specific funds should implement the level of capital land which is linked to a good use of working capital is able to get better technical and economic efficiency.

Suggested Citation

  • Nicola Galluzzo, 2016. "Economic and Technical Efficiency in Slovenian Farms by Fadn Dataset," International Conference on Competitiveness of Agro-food and Environmental Economy Proceedings, The Bucharest University of Economic Studies, vol. 5, pages 73-82.
    • Handle: RePEc:aes:icafee:v:5:y:2016:p:73-82
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    References listed on IDEAS

    as
    1. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
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