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Variations in Farm Performance in Transitional Economies: Evidence from the Czech Republic1

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  • Sophia Davidova
  • Matthew Gorton
  • Belen Iraizoz
  • Tomas Ratinger

Abstract

This paper revisits the literature on farm restructuring in the CEECs by analysing the variations in farm performance in the Czech Republic a decade after the start of the transition process. It identifies seven clusters of farms that differ in their productivity and profitability usng data from 1998 and 1999. The analysis reveals that the vast majority of farms are unprofitable, and there is no strong evidence that individual farms perform better than corporate farms. In fact, there are large numbers of individual farms that are loss‐making on their agricultural activity with low factor productivity. Producer co‐operatives and limited liability companies suffer from debts inherited from the reform process. Future restructuring is likely to occur in all clusters rather than affecting just corporate farms.

Suggested Citation

  • Sophia Davidova & Matthew Gorton & Belen Iraizoz & Tomas Ratinger, 2003. "Variations in Farm Performance in Transitional Economies: Evidence from the Czech Republic1," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 227-245, July.
    • Handle: RePEc:bla:jageco:v:54:y:2003:i:2:p:227-245
    DOI: 10.1111/j.1477-9552.2003.tb00061.x
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    Cited by:

    1. Curtiss, Jarmila & Brümmer, Bernhard & Medonos, Tomas & Weaver, Robert D., 2005. "Structural Change in Transition: A Role for Organizational Legitimacy? Evidence from Czech Agriculture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24557, European Association of Agricultural Economists.
    2. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    3. Bezlepkina, Irina V. & Huirne, Ruud B.M. & Oude Lansink, Alfons G.J.M. & Oskam, Arie J., 2005. "Analysing Variation in Russian Dairy Farms, 1990-2001," 94th Seminar, April 9-10, 2005, Ashford, UK 24444, European Association of Agricultural Economists.
    4. Bachev, Hrabrin & Koteva, Nina & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Terziev, Dimitar & Dimova, Nadejda & Dimitrova, Reneta & Marinov, Petar & Zvyatkova, Daniela & Sarov, Angel & Koste, 2021. "Холистичен Подход За Дефиниране, Оценяване И Подобряване На Конкурентоспособността На Земеделските Стопанства В България [A holistic framework for defining, evaluating, and improving the competitiv," MPRA Paper 111498, University Library of Munich, Germany.
    5. Elliott, Matthew & James, Harvey Jr., 2013. "Nature Of The Farm: Revisited," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150726, Agricultural and Applied Economics Association.
    6. Johan F.M. Swinnen, 2009. "Reforms, globalization, and endogenous agricultural structures," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 719-732, November.
    7. Lukas CECHURA & Zdenka KROUPOVA & Tamara RUDINSKAYA, 2015. "Factors determining TFP changes in Czech agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(12), pages 543-551.
    8. Maria José Palma Lampreia DOS SANTOS, 2013. "Segmenting farms in European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(2), pages 49-57.
    9. Lukas Cechura & Aaron Grau & Heinrich Hockmann & Inna Levkovych & Zdenka Kroupova, 2017. "Catching Up or Falling Behind in European Agriculture: The Case of Milk Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 206-227, February.
    10. Carraresi, Laura & Banterle, Alessandro, 2015. "Agri-food Competitive Performance in EU Countries: A Fifteen-Year Retrospective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-26, May.
    11. Baráth, Lajos & Ferto, Imre, 2014. "Agricultural Productivity in the EU: A TFP Comparison between the Old (EU-15) and New (EU-10) EU Member States," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168923, European Association of Agricultural Economists.
    12. Iraizoz, Belen & Gorton, Matthew & Davidova, Sophia, 2007. "Segmenting farms for analysing agricultural trajectories: A case study of the Navarra region in Spain," Agricultural Systems, Elsevier, vol. 93(1-3), pages 143-169, March.
    13. Curtiss, Jarmila & Jelínek, Ladislav & Hruška, Martin & Medonos, Tomáš & Vilhelm, Václav, 2013. "The Effect of Heterogeneous Buyers on Agricultural Land Prices: The Case of the Czech Land Market," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(02), pages 1-18, May.
    14. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.
    15. Sophia Davidova & Laure Latruffe & Tomas Ratinger, 2005. "Performance of different institutional units in the Czech Republic and the role of external financing," Post-Print hal-02285613, HAL.
    16. Karolina Pawlak & Walenty Poczta, 2020. "Agricultural Resources and their Productivity: A Transatlantic Perspective," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 18-49.
    17. Cechura, Lukas & Hockmann, Heinrich & Mala, Zdenka & Maly, Michal, 2014. "Productivity And Efficiency Differences Between Czech And Slovak Milk Producers," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-5, October.
    18. Sophia Davidova & Laure Latruffe, 2003. "Technical efficiency, reform debts and financial management of farms in transition countries : the experience of the Czech Republic," Post-Print hal-02283472, HAL.
    19. Sophia Davidova & Laure Latruffe, 2004. "Technical efficiency and farm financial management in countries in transition," Post-Print hal-02283462, HAL.
    20. Bojnec, Štefan & Fertő, Imre & Jámbor, Attila & Tóth, József, 2010. "Institutions, policy reforms and efficiency in new member states from Centraland Eastern Europe," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52712, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    21. Petrovici, D.A. & Gorton, M., 2005. "An evaluation of the importance of subsistence food production for assessments of poverty and policy targeting: Evidence from Romania," Food Policy, Elsevier, vol. 30(2), pages 205-223, April.
    22. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Application of a double bootstrap to investigation of determinants of technical efficiency of farms in Central Europe," Journal of Productivity Analysis, Springer, vol. 29(2), pages 183-191, April.

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