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Efficiency of farm assets is a very important factor of competitive production. It could be in strong correlation with profitability of economic activities. One of the most important factor of the farm assets is the fixed assets, and as a part of it, the equipment as well. An important factor of the farm asset value is the machinery, which depends on the amount of internal resources of farms and external financial resources i.e. governmental subsidies, bank loans. But, as it could be observed during the 1980s and 1990s on the farms of developed countries, the technical development was also a considerable factor of farming. This paper, based on the data of the FADN, and yearbooks of the HCSO, focuses on the investigation of some figures of the European Union for capital efficiency between 1989 and 2004, and compares these experiences with the Hungarian changes on the farms during the 1990s.
The accession of Central-Eastern European countries in 2004 and 2007 has placed the agriculture of these countries in the context of new economic policy and market competition. Former research has led to the conclusion that the majority of agricultural producers in the countries of the region are at a significant disadvantage in regards to productivity compared to the farmers of the countries integrated into the EU earlier. The research has examined what – if any – changes have been made during the elapsed period and whether there is any convergence in regard to country groups and different farm size units to the level of farming productivity in field crop farms of more developed countries. The research was based on EU FADN data which provided data until 2009. Figures of five full fiscal years are enough to reveal some tendencies. The research has evaluated the characteristics of changes (with longitudinal analysis) by utilizing the indices of partial efficiency. By using the status attainment theory, an attempt was made to find an explanatory context between the components with income generating capacity for farms and labour productivity. The main conclusion of the research is that the convergence of countries and the varying economic size of farms were differentiated and productivity substantially affected the added value of production potential.
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