Profitability of agricultural work in the EU countries

Abstract

The study addresses the issue of diversifying profitability of work in agriculture EU member states. The analysis is based on Economic Accounts for Agriculture, these EU harmonized financial statements allowing for a current analysis of the economic situation in agriculture according to uniform rules. The research is based and presented as a system of work profitability indicators and the logit regression of the ordered categories. Studies have shown that in the period 2005–2012 profitability in EU agriculture increased, in real terms, on average by 1.7%, and in 2012 in comparison to 2005, the level of profitability of labor was higher in real terms by almost 40%. The ordered logit analysis which determines differences in work profitability in EU agriculture labour productivity in agriculture, agriculture load financial costs and the employment structure, as seen in a context of the scale of the hiring of the workforce, has been included. These logit models also prove the generally poor links between work profitability and production subsidies. Subsidies implemented under the Common Agricultural Policy play an important role, especially in countries with a low level of development of their agricultural sectors.