Efficiency of the European Union farm types: Scenarios with and without the 2013 CAP measures

Abstract

The European Union Farm Accountancy Data Network (FADN) publishes data for the representative farms of several European Union (EU) farm types, regions and countries. In this database, the published data for the farm types allow us to assess several agricultural policies. In fact, the FADN publishes data for the EU farming types and there are not many studies about these fields in the whole European context. This study aims to bring novelty for the whole spectrum of stakeholder types in these domains. The analysis of these impacts may bring relevant insights, especially, for adjustments in the design of future strategies and plans. We analyse the evolution of the EU farm types in the last two decades with significant scenario changes like two large common agricultural policy (CAP) reforms (2003 and 2013) and suggest new approaches to the design for future measures. Statistical information from the FADN over the period 2004–2018 is considered. In addition, efficiency and productivity assessments are carried out, to assess the implications of the most recent instruments of the CAP. The results show that the policy instruments in the framework of the 2013 CAP justify the use of more inputs (or at least at higher costs) for the same level of output. In fact, the subsidies given to the farmers since 2014 mask the inefficiencies underlying some farm types. A significant decrease in the total factor productivity confirmed this trend, despite positive growth rates for the total verified output for several farm types over the period.

Keywords

• farming systems
• fadn
• data envelopment analysis
• malmquist index