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Key Factors Affecting the Profitability of Farms in the Czech Republic

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  • Lososova, J.
  • Zdenek, R.

Abstract

The paper deals with assessment of the economic situation of Czech farms and its development in a long time- line. The analysis is based on our own database of farms in a sample of farms classified by LFA, production type and size. An increase of production is mainly caused by an increase in crop production revenues, animal and non-agricultural production revenues are decreasing. An increase of labour productivity is an important tendency in the period influenced mainly by decreasing the number of workers. Due to the high dependency of profit or loss in agriculture on environmental conditions, the development of indicators is characterized by significant fluctuations. The dependence of profit on subsidies is greatest in the mountain LFA. Enterprises focused on crop production are the least dependent on subsidies, but their profit is the most affected by other external economic conditions, particularly by climatic conditions and price developments.

Suggested Citation

  • Lososova, J. & Zdenek, R., 2014. "Key Factors Affecting the Profitability of Farms in the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(01), pages 1-16, March.
    • Handle: RePEc:ags:aolpei:166523
    DOI: 10.22004/ag.econ.166523
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    References listed on IDEAS

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