Productivity Diversification by Farm Category in the European Union

Abstract

Abstract: The aim of the article was to define economic efficiency and productivity of soil and labor in the family farms, small scale farms and large scale farms in the European Union Member States. Farm categorization was based on the two main criteria such as structure of family labour force in relation to total labour and on the relation of agriculture income to minimum wage. A farm was regarded as a family farm if the work input made by the family living on a farm exceeded 50% of the total work input calculated as AWU, and income generated per 1 person exceeded the minimum wage. Farms featuring a predominance of hired labour over family labour were considered large scale farms. Other farms were classified as small scale farms.Results of the analysis of the different types of farms depended directly on their category. In large scale farms labour efficiency is typically several times greater than in small scale farms and in family farms. In many countries large scale farms also feature higher soil productivity.According to the analysis, economic efficiency as well as soil and labour productivity were the highest in the Benelux, followed by Germany, Denmark and Sweden. The worst results in the EU were recorded by farms in Romania, Bulgaria and Lithuania.