Certain prominent components of the technical development environment in community agriculture

Baranyai, Zsolt

Keywords: profitability, technical development, subsidies, capital efficiency, competitiveness

Findings indicate that plants in the Community are rather heterogeneous in terms of the conditions relevant to technical development, including degree of concentration, the level of technical development, development potential (as shown by funds available – coverage amount and subsidy), as well as the efficiency of capital tied down in development projects. Unfortunately, relevant rends in Hungary – similarly to most EU-10 countries which became Member States in 2004 – are negative. The current problems can be resolved through the rational development of agriculture, by paying special attention to capital efficiency parameters. Capital efficiency may be improved by concentration, partly on the level of business units – although empirical evidence suggests that this does not necessarily have a positive effect – or by cooperation between farmers. This latter is also more beneficial in terms of the role agriculture plays in the society.

Full article