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Farm performance and support in Central and Western Europe: A comparison of Hungary and France

Author

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  • Laure Latruffe
  • Jozsef Fogarasi
Abstract
The paper investigates the difference in technical efficiency and in productivity change, and the technology gaps, between French and Hungarian farms in the dairy and cereal, oilseeds and proteinseeds (COP) sectors during the period 2001-2004. The analyses are performed with national FADN data and the Data Envelopment Analysis (DEA) approach under each country’s respective frontier and under a metafrontier. Results revealed that in both the dairy and the COP sectors, Hungarian farms’ technology was the more productive, despite a technological deterioration. This suggests technological advantages for large-scale (Hungarian) over small-scale (French) farming in these two sectors. These findings may also be explained by the higher policy support in France. Subsidies received by farms have indeed a stronger negative impact on technical efficiency for French farms than for Hungarian farms, and a negative impact on the ability to lead the technology only for French farms.

Suggested Citation

  • Laure Latruffe & Jozsef Fogarasi, 2009. "Farm performance and support in Central and Western Europe: A comparison of Hungary and France," Working Papers SMART 09-07, INRAE UMR SMART.
    • Handle: RePEc:rae:wpaper:200907
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    Cited by:

    1. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    2. Hasan Dudu & Emanuele Ferrari, 2018. "Estimation and Modelling Impacts of Pillar 2 Measures on the Agricultural Sector: Workshop proceedings," JRC Research Reports JRC111756, Joint Research Centre.
    3. repec:lic:licosd:40918 is not listed on IDEAS
    4. Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiencyand productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(1), pages 15-28.
    5. 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.
    6. Dudu, Hasan & Smeets Kristkova, Zuzana, 2017. "Impact of CAP Pillar II Payments on Agricultural Productivity," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261171, European Association of Agricultural Economists.
    7. Bakucs, Lajos Zoltan & Ferto, Imre & Latruffe, Laure & Desjeux, Yann & Soboh, Rafat & Dolman, Mark, 2011. "Comparative Analysis of Technical Efficiency in European Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114235, European Association of Agricultural Economists.
    8. Bakucs, Lajos Zoltan & Ferto, Imre & Fogarasi, Jozsef & Latruffe, Laure & Desjeux, Yann & Matveev, Eduard & Marongiu, Sonia & Dolman, Mark & Soboh, Rafat, 2011. "EU farms’ technical efficiency and productivity change in 1990 – 2006," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108773, Agricultural Economics Society.
    9. Lilli Aline Schroeder & Alexander Gocht & Wolfgang Britz, 2015. "The Impact of Pillar II Funding: Validation from a Modelling and Evaluation Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 415-441, June.
    10. Cillero, Maria Martinez & Breen, James & Thorne, Fiona & Wallace, Michael, 2017. "The effect of the implementation of the 2003 Mid-Term Review of the CAP on technical efficiency of beef production. A comparative analysis," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258617, Agricultural Economics Society.
    11. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    12. Karanja, Francis & Gilmour, Daniel & Fraser, Iain, 2012. "Dairy productivity growth, efficiency change and technological progress in Victoria," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 125053, Australian Agricultural and Resource Economics Society.
    13. FANDEL, Peter, 2014. "What Is Behind Biased Technical Change In Production Of Cereal And Oilseed Crops In Slovakia?," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-7, September.
    14. 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.
    15. Joanna Bereznicka & Ludwik Wicki, 2021. "Do Farm Subsidies Improve Labour Efficiency in Farms in EU Countries?," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 925-937.
    16. Amer Ait Sidhoum & Philipp Mennig & Johannes Sauer, 2023. "Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 918-953.
    17. Zbranek, Peter & Fandel, Peter, 2015. "Development of productivity and its components in Slovak agriculture before and after EU accession: Analysis of the impact of CAP introduction on the performance indicators of Slovak crop and livestoc," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207353, Italian Association of Agricultural and Applied Economics (AIEAA).

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    More about this item

    Keywords

    technology gap; technical efficiency; Malmquist indices; subsidies; farms;
    All these keywords.

    JEL classification:

    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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