Impediments to Employment and Enterprise Diversification: Evidence from Small-Scale Farms in Poland

In an environment of low returns to agricultural activities and slow structural change, both employment and enterprise diversification have been presented as possible strategies for raising the incomes of farm households. This paper focuses on the barriers to taking up off-farm employment and establishing new non-agricultural enterprises. Factor and cluster analysis are applied to a data-set of individual farms in Poland in order to identify groups of households facing similar constraints and profile policy measures that are most likely to assist diversification. The majority of non-diversifiers are unlikely to become pluriactive in the near future due to a combination of age, a desire to concentrate on farming and remoteness. Farm households that are willing to diversify are characterised by the lowest agricultural incomes. For these households, a poor endowment of human and physical capital is a major constraint.Poland, diversification, off-farm employment, non-agricultural enterprises, cluster analysis, Industrial Organization, Labor and Human Capital, R0, Q12,

Non-Agricultural Diversification of Farm Households and Corporate Farms in Central Europe

Consumer/Household Economics, Farm Management,

AGRICULTURAL ADJUSTMENT AND THE DIVERSIFICATION OF FARM HOUSEHOLDS IN CENTRAL EUROPE

Survey evidence from three Central European Countries (Czech Republic, Hungary and Poland) is analysed to identify the degree of non-agricultural farm diversification and the factors facilitating or impeding it in individual farms. The effect of diversification on rural job creation is investigated. The results indicate that the level of diversification is relatively small and enterprise diversification by farmers is unlikely to generate sufficient new jobs and solve the problem of high rural unemployment. The attempt to transpose the Western European model of agricultural diversification to the acceding countries via the SAPARD programme is questionable, as non-farm centric rural policies appear to be more appropriate.Farm households, non-agricultural diversification, job creation, Central Europe, Consumer/Household Economics,

Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector

Drawing on survey data, this paper identifies the determinants of variations in farm gate milk prices for three CIS countries (Armenia, Moldova and Ukraine). We apply a multi-level modeling approach, specifically a bootstrapped mixed-effects linear regression model. The analysis suggests three main strategies to improve the price received by farmers for their output: consolidation, competition for output and stable supply chain relationships. In Armenia and Ukraine selling through a marketing cooperative has a significant, positive, albeit modest, effect on farm gate milk prices. In all three countries studied, the size of dairy operations, trust and contracting also affect positively the prices received by farmers.price heterogeneity, milk, cooperatives, Armenia, Moldova, Ukraine, Agribusiness, Demand and Price Analysis, Marketing, O13, P32, Q13,

Growth and performance of small and medium sized enterprises in rural peripheral locations

Merged with duplicate record 10026.1/874 on 01.02.2017 by CS (TIS)Since the 1970s the number of small firms in the UK has risen, but at temporally and spatially uneven rates. These trends have heightened interest in the role of local economies in shaping small firm growth and performance. This thesis considers the growth and performance of small and medium sized enterprises (SMEs) based in rural peripheral locations in the UK. In measuring this, quantitative survey work was undertaken in rural core as well as rural peripheral localities, with the former acting as a benchmark for comparison. lJtilising returns from standardised postal questiormaires both the performance of the agricultural and non-agricultural business sectors can be compared. By contrasting the performance of both sectors the distribution of existing public sector funds aimed at rural local economic development (LED) is called into question. There is little support for the notion that farm diversification will contribute in any meaningful way to LED. When non-agricultural SMEs in rural peripheral localities are compared with enterprises of a similar age and standard industrial classification (SIC) code in core localities, few significant spatial variations are apparent in business strategy and structure. The main problem for rural peripheral locations would appear to lie not with the firms they already have, but rather the ones which are not present, and in particular their relative structural weakness of fewer medium sized manufacturing companies. When government SME policy is examined, the institutional proliferation and increased government spending which occurred during the 1980s did little to solve this structural weakness. It is contended that a key need for SMEs based in rural peripheral localities is to transcend restricted local markets and the main barriers, and possible solutions to, this process is drawn out in the concluding sections.University of Plymouth,the Cornwall Education and Research Trust and Teesdale District Council

Farm expansion in Lithuania after accession to the EU: The role of CAP payments in alleviating potential credit constraints.

The impact of the introduction of EU Single Area Payments (SAP) on farm expansion strategy in Lithuania is investigated, utilizing farm accounting and survey data. The introduction of the SAP has a positive influence on farmers’ intentions to expand their area compared to a baseline scenario of the hypothetical continuation of pre-accession policy. The switch in policy has a more pronounced effect on farms that were previously credit constrained. While the SAP has been presented as a support that is decoupled from production, its introduction may have ex post coupled effects, through an income multiplier effect on credit constrained farmersSingle Area Payments (SAP), Common Agricultural Policy (CAP), credit, investment, Lithuania

Can the CAP payments facilitate the growth of individual farms in the NMS post-EU accession?

The impact of the introduction of the EU Single Area Payments (SAP) on farm strategy is investigated for a sample of Lithuanian farms, utilising farm accounting and survey data. The applications of two investment models demonstrate that the credit market in Lithuania was imperfect prior to accession and that some farms were financially constrained. The introduction of the SAP has a significant, positive influence on farmers’ intentions to expand their farm area compared to a baseline scenario of the continuation of pre-accession policy. The switch in policy has a more pronounced effect on farms that were previously credit constrained. While the SAP has been presented as a policy support that is decoupled from production, its introduction will nevertheless have ex post coupled effects, most notably an income multiplier effect on credit constrained farmers.Single Area Payments (SAP), Common Agricultural Policy (CAP), credit, Lithuania,

Can the CAP payments facilitate the growth of individual farms in the New Member States post-EU accession?

The impact of the introduction of EU Single Area Payments (SAP) on farm strategy in New Member States is investigated for a sample of Lithuanian farms, utilizing farm accounting and survey data. The application of two investment models demonstrates that the credit market in Lithuania was imperfect prior to accession and that some farms were financially constrained. The introduction of the SAP has a significant, positive influence on farmers’ intentions to expand their farm area compared to a baseline scenario of the continuation of pre-accession policy. The switch in policy has a more pronounced effect on farms that were previously credit constrained. While the SAP has been presented as a policy support that is decoupled from production, its introduction will nevertheless have ex post coupled effects, most notably an income multiplier effect on credit constrained farmers.Single Area Payments (SAP), Common Agricultural Policy (CAP), credit, Lithuania, Agricultural and Food Policy, Farm Management,

Shining a spotlight on small rural businesses: How does their performance compare with urban?

Rural enterprises play an important economic role, contributing to national prosperity and wellbeing but are often a blind spot within rural development and wider economic policies and evidence. This paper presents an urban-rural analysis of a large scale survey of Small and Medium-sized Enterprises (SMEs). It applies Propensity Score Matching to allow for an assessment of the effects of rurality on business performance. Results show that England's rural firms have similar levels of turnover to their urban counterparts, but are more likely to report a profit. The analysis also reveals rural firms to be significantly stronger exporters of goods and services and to have goods or services suitable for exporting. However, there are some weaknesses and obstacles to business success that concern significantly more rural than urban firms, that vary with the rurality of local districts, and which require the attention of policy makers and support providers seeking to achieve spatially-balanced and more equitable economic development