INTERTEMPORAL ANALYSIS OF EMPLOYMENT DECISIONS ON AGRICULTURAL HOLDINGS IN SLOVENIA

The paper attempts to quantify determinants influencing dynamics of employment decisions on agricultural households in Slovenia and to test specific aspects of labour reallocation during transition period by application of agricultural household model. Through the use of 1991-2000 panel data for 22,055 farm households, quantitative analysis of intertemporal employment decisions of farm holders is carried out by the use of probit techniques. Determinants tested refer to personal characteristics of reference persons (gender, age, education level, opportunity off-farm income), household characteristics (size, structure),characteristics of the agricultural holding (economic size, labour input,labour intensity) and local labour market conditions. The model results generally confirm the existing empirical evidence on asymmetrical and irreversible participation of holders at the labour market. Despite intensive restructuring of agriculture and profound changes in non-farm labour market in the analysed period, labour supply of farm holders remains rigid. Mobility of labour supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. A marked tendency towards upkeeping of the same employment status is more distincted in the case of holders employed on the farm. A low level of labour supply mobility worsens efficiency of labour allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both, supply (e.g. low level of educational and professional attainment of reference persons) and demand side of labour market (e.g. unfavourable local labour market conditions).employment decisions, mobility of labour supply, off-farm employment, probit model, Labor and Human Capital, J2, J6,

Factors affecting farm productivity in Bulgaria, Hungary, Poland, Romania and Slovenia after the EU-accession and likely structural impacts

The paper is investigating the recent evolution of farm productivity in five EU New Member States (NMS): Bulgaria, Hungary, Romania, Poland and Slovenia. More precisely, the paper deals with determinants influencing farm productivity in a changing market and policy environment brought by their full integration to the CAP. With a combination of multivariate statistics and econometric techniques, it attempts to identify and explain the patterns of agricultural labour productivity change in the period 2003-2005. Results suggest that adjustment patterns are diverging and are region-specific, depending mainly on the initial farm structural conditions, and availability of non-farm jobs. Policy implications of the paper suggest that agricultural policy should move away from the concept of transfers to agriculture to more pro-active role in creating conditions for job creation in rural areas.structural adjustment, farm productivity, farming types, EU-accession, Community/Rural/Urban Development, Q12, R11,

Determinants of purchasing behaviour for organic and integrated fruits and vegetables in Slovenia

A country-vide survey related to purchasing behaviour of organic and integrated fruit and vegetables has been prepared for Slovenia. An ordered probit model of consumer choice was developed on the basis of survey results to quantify various determinants of purchase frequency for organically and integrally produced fruit and vegetables. Results show that purchase of analysed produce is most significantly influenced by their availability in retail outlets, followed by consumers’ income, health and environmental considerations, and visual attractiveness of products. Demand for organically and integrally produced fruit and vegetables could be further stimulated by targeted knowledge and awareness raising actions.consumer behaviour, fruit and vegetable, organic food, integrated agricultural production, ordered probit model, Slovenia, Consumer/Household Economics, Marketing, Q13,

The Impact of CAP and EU Cohesion Support on Growth and Convergence of the Eastern Slovenia Region in the Period 2007-2013

The paper investigates economic performance of the Eastern Slovenia region in the changed economic and policy environment after the accession to the EU. The likely impacts of public expenditure in the field of cohesion and agricultural policy in the period of the Community financial perspective 2007-2013 are analysed by the regional InputOutput model estimated with modified GRIT methodology. Results of the impact analysis carried out by application of various policy scenarios suggest that: (i) the analysed funds can significantly contribute to the overall output growth of the regional economy; (ii) EU budgetary inflows contribute to economic convergence of the region; (iii) differences between the projected impacts primarily depend on the regional division of Slovenia at the NUTS 2 level; (iv) favourable prospects can be impaired by various limiting factors. Concerning the impacts of CAP expenditure, the paper argues against the popular opinion about its low redistributive and short-term effects.regional input-output model, Slovenia, Common Agricultural Policy, EU cohesion policy, International Relations/Trade, R11, R15, R58, Q18,

REFORMING PILLAR 2 –TOWARDS SIGNIFICANT AND SUSTAINABLE RURAL DEVELOPMENT?

With the ongoing “Health Check” and the decisions needed for after 2013, the Common Agricultural Policy is likely to see another major reform and an increase in compulsory modulation. By employing a regional model, this paper compares the long-term impact of spending along the Pillar 2 Axes in NUTS3 areas on selected indicators of sustainability in several peripheral areas across Europe. The four case study areas are: Pinzgau-Pongau (a tourism-dominated alpine area in Austria), the Wetterau (an urbanised industrial area in Germany), Gorenjska (a tourism and manufacturing dominated area in Slovenia) and Caithness-Sutherland (a remote area in Scotland). The results suggest although devolution in European rural development policy has taken over the last 10 years, there is further need to restore place-based stewardship of public goods and services as well as private investments across rural areas in the European Union. Increasing the importance of Axis 2 and Axis 3 measures (part of CAP Pillar 2) therefore seems an obvious choice for the future. Furthermore, it is clear that the effects of wider societal trends such as the decreasing importance of agriculture, commuting and migration, can be weakened or amplified by EU funding but can not be reversed or significantly changed.CAP, Pillar 2, rural development, Agricultural and Food Policy, R15, Q18, Q01,

Towards a step change for enhanced delivery of environmental and social benefits from EU farming and forestry.

More environmentally sensitive management of farmland and forestry is needed in Europe in response to increasing public demand and to meet the requirements of EU legislation for example on biodiversity. However, the provision of environmental and social public goods from farmland and forestry is not increasing at the required pace. A step change in approach is required: the opportunity could be provided by the current debate on adopting a more performance focussed model of the Common Agricultural Policy. Current policy mechanisms, including regulation and a range of incentives to individual farmers, meet part of the need but are not sufficient. Detailed analysis of 34 cases across the EU has convinced us that a new approach based on greater engagement with a wider range of key actors through collective actions could have greater ambition. It could aim for greater scale, longevity and coherence of action across a territory or along a supply chain. Building trust and establishing the right form of governance for highly diverse networks and types of cooperation is vital. Commercial actors in the supply chain could play a larger role. Links between flexible and extended forms of policy support, including for new initiatives, multi‐stakeholder partnerships and projects and for facilitators, will be needed

Rural Development Policy in the Period 2007-2013: Challenges and Risks for Slovenia

Paper presents the main changes brought by the new EU Rural Development Regulation and discusses the main open issues that refer to its implementation in the period of the New Financial Perspective (NFP) of the EU (2007-2013). The paper attempts to assess the significance of these changes on the future implementation of rural development in Slovenia. The future allocation of funds for Rural Development from the Community budget to Slovenia is not likely to increase significantly. Public expenditure in this policy field is also highly dependent from the future status of Slovenia in the EU Cohesion policy. In terms of implementation, the main risks refer to the unbalanced expenditure for various groups of rural development measures in Slovenia. This imbalance could impair the future implementation of some newly introduced rural development measures (e.g. agri-environmental measures, compliance with the Community standards). The paper states that these risks can be controlled with careful policy programming. In the long term, Slovenia would benefit from a better balancing of rural development measures

Determinants of purchasing behaviour for organic and integrated fruits and vegetables in Slovenia

A country-vide survey related to purchasing behaviour of organic and integrated fruit and vegetables has been prepared for Slovenia. An ordered probit model of consumer choice was developed on the basis of survey results to quantify various determinants of purchase frequency for organically and integrally produced fruit and vegetables. Results show that purchase of analysed produce is most significantly influenced by their availability in retail outlets, followed by consumers’ income, health and environmental considerations, and visual attractiveness of products. Demand for organically and integrally produced fruit and vegetables could be further stimulated by targeted knowledge and awareness raising actions