Total productivity of emergent farm structures in Central and Eastern Europe.

Abstract

The role of farm structures in sector production, the continued economic viability and survivability of certain structures, and whether certain structures have inherent productivity advantages over others, are examined in this chapter. The analysis centred on 410 farms and 58 products in the Czech Republic (1996), 153 farms and 29 products in Hungary (1997), and 80 farms and 29 products in Slovakia (1996). For the Czech Republic it is discussed, whether production cooperatives do not have lower total productivity than other types; farming companies do not have higher total productivity that other farm types; there is evidence of economies of size in crop production; and organization and farm size are both significant for livestock productivity. In Hungary it is ascertained that, on average, individual private farmers have significantly higher total productivity than any other farm type; there is no difference in the total productivity of farming companies and production cooperatives; there is no evidence of economies of size in agricultural production as a whole, and particularly in crop production; large individual private livestock producers have exceptionally high total productivity in livestock production; there is weak evidence of economies of size in livestock production; and production cooperatives have the highest livestock productivity overall. For Slovakia, it is noted that there is strong evidence of economies of scale in crop production; a much weaker pattern of economies of size in total production is due to a weak pattern of economies of size in livestock productivity; and the relative productivity of smaller farms has improved since 1990. The position of small private farms in the Czech Republic and Hungary is compared and contrasting economies of size in the Czech Republic and Slovakia is noted.

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