Farms economic and financial state
Nina Koteva
Abstract: This article purpose is to analyze the level and the trends of change of main indicators, characterizing the farms’ efficiency and financial opportunities. The research is based on official statistic information (National Statistical Institute, Ministry of Agriculture and Food, Eurostat) and covers the period 2006–2013. A wide range of actual research methods has been used: system and comparative analysis; method of statistical groupings; inductive and deductive methods for analysis and formation of generalizations and recommendations. The following indicators’ groups have been analyzed:
• Indicators characterizing the farms’ economic efficiency – productivity; productivity per area unit and per livestock unit; output profitability; profitability – average per farm and average profitability per area unit and per livestock unit.
• Indicators characterizing the financial state of farms – profitability rate of own capital; coefficient of total liquidity; coefficient of financial autonomy.
The following conclusions were made, based on the achieved analysis:
• There is not an expressed trend of increase of farms’ efficiency in the country. The average gross output amount and the labour productivity show a trend to increase, due to the considerable increase of these indicators’ levels in farms with field crops. Indicators in other farms’ types are under the average for the country. The fluctuations of resultative indicators are serious – net income and profitability rate;
• The realized gross output, labour productivity and net income for field crops farms surpass many times the achieved indicators in the rest of farms types, but the production has low profitability. This show that the realized results are due to the considerably bigger farms’ sizes and to the received support and not to the more effective production;
• The received support leads to increase of farmers’ incomes, but does not help the increase of production efficiency and profitability.
• There are not clearly expressed trends in the financial state of farms, as the observed indicators manifest serious fluctuations. The most unfavourable is the financial situation for the farms growing perennial crops.
• Indicators characterizing the farms’ economic efficiency – productivity; productivity per area unit and per livestock unit; output profitability; profitability – average per farm and average profitability per area unit and per livestock unit.
• Indicators characterizing the financial state of farms – profitability rate of own capital; coefficient of total liquidity; coefficient of financial autonomy.
The following conclusions were made, based on the achieved analysis:
• There is not an expressed trend of increase of farms’ efficiency in the country. The average gross output amount and the labour productivity show a trend to increase, due to the considerable increase of these indicators’ levels in farms with field crops. Indicators in other farms’ types are under the average for the country. The fluctuations of resultative indicators are serious – net income and profitability rate;
• The realized gross output, labour productivity and net income for field crops farms surpass many times the achieved indicators in the rest of farms types, but the production has low profitability. This show that the realized results are due to the considerably bigger farms’ sizes and to the received support and not to the more effective production;
• The received support leads to increase of farmers’ incomes, but does not help the increase of production efficiency and profitability.
• There are not clearly expressed trends in the financial state of farms, as the observed indicators manifest serious fluctuations. The most unfavourable is the financial situation for the farms growing perennial crops.
Keywords: economic efficiency; EU CAP; farms; financial state
Date published: 2017-10-09
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