INPROFORUM 2014

The Impact of Price Changes on the Results of Agricultural Enterprises
Martina Novotná, Jaroslav Svoboda

Language: en
Last modified: 2015-04-07

Abstract



Agriculture is one of the traditional sectors of the economy. Agriculture today is not only to produce food but takes on itself and other functions, such as community, social or environmental ones. Agricultural activity is also an integral part of the rural area. The performance of these production functions is supported by many farmers’ subsidy instruments (national or European). The Czech agrarian sector has undergone significant changes in the last few decades.

The aim of this paper is to analyse revenues, costs and profit/loss of farms in current prices and in comparable prices. The data base consists of a sample of about thousand observations from 2005 to 2013. The result was an established fact, when using the deflated costs and revenues items, there was a significant drop in profit/loss. At current prices entities realized gain (except in 2009), but the conversion was getting into losses. The economics of agricultural enterprises is, therefore, in addition to climatic conditions significantly affected by price fluctuations, which clearly demonstrated the contribution.


Keywords


Agriculture; Common Agricultural Policy; Cost, revenues, profit/loss; Prices ·Farms

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