IDEAS home Printed from https://ideas.repec.org/a/ags/paaero/348629.html
   My bibliography  Save this article

Factors Influencing the Durability of Operations Financed Under the CAP in the Opinion of Agricultural Advisors

Author

Listed:
  • Soliwoda, Michał
  • Klimkowski, Cezary

Abstract

The durability of operations is an important category from the point of view of public policies, including the Common Agricultural policy (CAP). The main objective of the article is to identify and assess factors affecting the durability of CAP financial operations on the example of measure 4.1. “Modernization of farms” based on the opinions of experts – advisors of agricultural advisory centers (ODR). We used primary data from expert surveys amongst agricultural counsellors: CAWI technique was employed. Diversification of production at farm-level, employment outside the farm and running non-agricultural activities should be assessed as key internal factors having a beneficial impact on the durability of the investment. The significant internal factors that were considered to have a strongly unfavorable impact on the durability of investments projects are those related to the insufficient level of capital and land held. Specialization in milk production, then pig production had a beneficial effect on durability of operations. Strengthening the quality of human capital in rural areas, including farm management should be recommended. This includes strengthening their flexibility and resilience, for example through diversification.

Suggested Citation

  • Soliwoda, Michał & Klimkowski, Cezary, 2024. "Factors Influencing the Durability of Operations Financed Under the CAP in the Opinion of Agricultural Advisors," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(01).
    • Handle: RePEc:ags:paaero:348629
    DOI: 10.22004/ag.econ.348629
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348629/files/SOLIWODA-24.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348629?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alexander Zorn & Michele Esteves & Ivo Baur & Markus Lips, 2018. "Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    2. Elisabeth Vollmer & Daniel Hermann & Oliver Musshoff, 2017. "An Experimental Approach to the Investment Timing of Conventional and Organic Hog Farmers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 65(2), pages 293-315, June.
    3. 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.
    4. Khafagy, Amr & Vigani, Mauro, 2022. "Technical change and the Common Agricultural Policy," Food Policy, Elsevier, vol. 109(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aleksandar Miljatović & Mirela Tomaš Simin & Veljko Vukoje, 2025. "Key Determinants of the Economic Viability of Family Farms: Evidence from Serbia," Agriculture, MDPI, vol. 15(8), pages 1-20, April.
    2. Jacek Kulawik & Michał Soliwoda & Agnieszka Kurdyś-Kujawska & Justyna Herda-Kopańska & Cezary Klimkowski, 2023. "Cost of Energy Consumption and Return of Excise Tax on Motor Fuels vs. the Durability of Operations and Financial Sustainability in Polish Agriculture," Energies, MDPI, vol. 17(1), pages 1-22, December.
    3. 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.
    4. Hans Vrolijk & Krijn Poppe, 2021. "Cost of Extending the Farm Accountancy Data Network to the Farm Sustainability Data Network: Empirical Evidence," Sustainability, MDPI, vol. 13(15), pages 1-13, July.
    5. Tomas Hlavsa & Jindrich Spicka & Marie Stolbova & Zuzana Hlouskova, 2020. "Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 193-202.
    6. Ritzel, Christian & Hoop, Daniel & Portmann, Marco & Wallner, Astrid & Mack, Gabriele, 2023. "Swiss Parks of National Importance as model regions of sustainable development – An economic success story for farmers?," Land Use Policy, Elsevier, vol. 124(C).
    7. Vigani, Mauro & Khafagy, Amr & Berry, Robert, 2024. "Public spending for agricultural risk management: Land use, regional welfare and intra-subsidy substitution," Food Policy, Elsevier, vol. 123(C).
    8. 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.
    9. 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).
    10. Filip Hampl, 2020. "A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 1-9.
    11. Wilczyński, Artur, 2020. "Measuring the Economic Dimension of Sustainable Agriculture: The Construction and Analysis of Farm Level Indicators," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(2).
    12. Mustafa OZYESIL, 2020. "An Application of Financial Ratio Analysis on Concordat Firms: A Model Suggestion on Construction Firms Listed in Borsa Istanbul," Journal of Economics and Behavioral Studies, AMH International, vol. 11(6), pages 10-22.
    13. Jindřich Špička & Petr Dereník, 2021. "How opportunity costs change the view on the viability of farms? Empirical evidence from the EU," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(2), pages 41-50.
    14. Sulewski, Piotr & Kłoczko-Gajewska, Anna, 2018. "Relations between agri-environmental, economic and social dimensions of farm sustainability," 166th Seminar, August 30-31, 2018, Galway, West of Ireland 276202, European Association of Agricultural Economists.
    15. Barreiro-Hurle, Jesus & Dessart, Francois J. & Rommel, Jens & Czajkowski, Mikołaj & Espinosa-Goded, Maria & Rodriguez-Entrena, Macario & Thomas, Fabian & Zagorska, Katarzyna, 2023. "Willing or complying? The delicate interplay between voluntary and mandatory interventions to promote farmers' environmental behavior," Food Policy, Elsevier, vol. 120(C).
    16. Roman Vavrek & Ivana Kravčáková Vozárová & Rastislav Kotulič, 2021. "Evaluating the Financial Health of Agricultural Enterprises in the Conditions of the Slovak Republic Using Bankruptcy Models," Agriculture, MDPI, vol. 11(3), pages 1-19, March.
    17. Volkov, Artiom & Morkunas, Mangirdas & Balezentis, Tomas & Streimikiene, Dalia, 2022. "Are agricultural sustainability and resilience complementary notions? Evidence from the North European agriculture," Land Use Policy, Elsevier, vol. 112(C).
    18. repec:rjr:romjef:v::y:2024:i:4:p:144-157 is not listed on IDEAS
    19. Jindřich Špička, 2018. "How Do Agricultural Biogas Investments Affect Czech Farms?," Central European Business Review, Prague University of Economics and Business, vol. 2018(4), pages 34-60.
    20. Analena Bruce & Elise Neidecker & Luyue Zheng & Isaac Sohn Leslie & Alexa Wilhelm, 2025. "“A farm is viable if it can keep its head above water”: defining and measuring farm viability for small and mid-sized farms," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 42(2), pages 625-641, June.
    21. Tumelo Francinah Ramukhithi & Khathutshelo Agree Nephawe & Takalani Judas Mpofu & Thomas Raphulu & Karen Munhuweyi & Fhulufhelo Vincent Ramukhithi & Bohani Mtileni, 2023. "An Assessment of Economic Sustainability and Efficiency in Small-Scale Broiler Farms in Limpopo Province: A Review," Sustainability, MDPI, vol. 15(3), pages 1-26, January.

    More about this item

    Keywords

    Agribusiness; Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:paaero:348629. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/seriaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.