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Economic Viability of Family Farms in Europe – A Literature Review

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  • POCZTA-WAJDA, AGNIESZKA

Abstract

As family farms are the dominant form of agricultural activity in Europe, their economic viability is a prerequisite for the sustainable development of agriculture and rural areas. The aim of this research is to review the latest publications on the economic viability of family farms in Europe. Based on a systematic literature review of studies related to European agriculture published in 2010-2020, this paper presents various concepts of family farm economic viability and assesses the methodologies used. The paper also presents the results of selected empirical research from the last 10 years on family farm economic viability in Europe, broken down into international and national comparisons. Results suggest that the most common approach to measuring economic viability is to use the opportunity cost concept of own factors of production. An important observation is also that, although most studies are based on the FADN database, the results of the analyses are sensitive to the selection of the threshold wage and own capital costs. What contemporary literature lacks is a long-term comparative analysis for all EU countries, as well as studies of drivers of family farm economic viability.

Suggested Citation

  • Poczta-Wajda, Agnieszka, 2020. "Economic Viability of Family Farms in Europe – A Literature Review," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(4).
    • Handle: RePEc:ags:paaero:308249
    DOI: 10.22004/ag.econ.308249
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    1. Nurmet, Maire & Omel, Raul, 2020. "Economic Viability by Farm Size of Estonian Family Farms," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311217, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
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    4. Teresa Hooks & Áine Macken-Walsh & Olive McCarthy & Carol Power, 2017. "The Impact of a Values-Based Supply Chain (VBSC) on Farm-Level Viability, Sustainability and Resilience: Case Study Evidence," Sustainability, MDPI, vol. 9(2), pages 1-19, February.
    5. Adele Coppola & Alfonso Scardera & Mario Amato & Fabio Verneau, 2020. "Income Levels and Farm Economic Viability in Italian Farms: An Analysis of FADN Data," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    6. Morel, Kevin & San Cristobal, Magali & Léger, François Gilbert, 2017. "Small can be beautiful for organic market gardens: an exploration of the economic viability of French microfarms using MERLIN," Agricultural Systems, Elsevier, vol. 158(C), pages 39-49.
    7. Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    8. O'Donoghue, Cathal & Devisme, Simon & Ryan, Mary & Conneely, Ricky & Gillespie, Patrick & Vrolijk, Hans, 2016. "Farm economic sustainability in the European Union: A pilot study," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(3), pages 1-9, December.
    9. Vassalos, Michael & Karanikolas, Pavlos & Li, Yingbo, "undated". "Investigating the Impact of Farm Characteristics, Socioeconomic Characteristics and of the Single Farm Payment on the Viability of Farms: The Case of Greece," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205423, Agricultural and Applied Economics Association.
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    2. Andrzej Parzonko, 2023. "Rentowność kapitału własnego w polskich gospodarstwach mlecznych zróżnicowanych skalą produkcji w latach 2005-2020," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(3).
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    4. Rūta Savickienė & Aistė Galnaitytė, 2024. "Unveiling Determinants of Successful Dairy Farm Performance from Dairy Exporting EU Countries," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    5. Cecilia ALEXANDRI & Corina SAMAN & Bianca PAUNA, 2024. "Heterogeneity in the agricultural sector and its implications for modeling viability," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 144-156, December.

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