This paper is concerned with the estimation of financial effects of farming in Slovenia. First it describes the evolution of farm management accounting and limitations of some techniques which are ...still often subject of discussion in Slovenia. It lists main records necessary for compiling gross margin accounts as the most promising method for farm business analysis and planning. The practical part of this report is concerned with limited survey to estimate profitability of farming on a sample of 15 Slovenian farms. The procedure of data collection is described and questions about reliability of results given existing circumstances (absence of book-keeping) are emphasised. An appropriate spreadsheet for profit calculation has been designed and additional subroutines created as tools for discovering weaknesses and strengths of existing practice. Calculations show positive financial results for year 1994. Values range between 113,000 and 1.772,000 SIT (nominal values). Given the labour consumed for farming, results indicate poor returns to inputs and call for better management with the resources available. Crude diagnosis claims for a reduction in fixed costs per unit of output and an increase in the intensity of production. Possible changes in the medium to long term are indicated, taking into account constraints from the wider business environment.
Paper investigates income effects of different direct payments policy options after the accession of Slovenia to the EU by application of a static deterministic total income model for rural ...households in Slovenia (TIM). Model is based on actual income data of 120 agricultural households in Slovenia. With respect to the baseline situation before the accession and accession agreement, income situation of analyzed households is likely to improve under all analyzed policy scenarios. The estimated benefits are highest in case of the standard direct payments scheme, followed by basic flat-rate area payment option (entirely decoupled). Model results reveal also that 2003 policy reform will have redistributive impacts in favour of agricultural households engaged in extensive agricultural production.
The aim of this paper is to present the method and tool for optimisation of beef-fattening diets. Changes in policy environment and changes in costs of feed pose challenges for farm efficiency. We ...construct a spreadsheet from two modules based on mathematical deterministic programming techniques. In order to obtain an estimate of the magnitude of costs that may be incurred, the first module utilizes a linear program for least-cost ration formulation. The resulting value is then targeted as a cost goal in the second module. This is supported by weighted goal programming with a penalty function system. The approach presented here is an example of how a combination of mathematical programming techniques might be applied to prepare a user-friendly tool for optimal ration formulations. We report results that confirm this approach as useful, since one is able to formulate a least-cost ration without risking a decrease in the rations nutritive value or affecting the balance between nutrients.;
In this article estimation of gross value added (GVA) applying extended economic account for agriculture (EAA) model and partial equilibrium APAS-PAM model has been carried out to emphasize the ...importance of direct payments for farm incomes in Slovenia after its EU accession. Scenario analysis for hypothetic accession year 2004 with different levels of direct payments' complementing from national budget has been applied. Model results have been compared with agricultural income in 2000 as representative pre-accession year. Results for 2004 depend on accession scenario but show the same trends regardless the model applied. Adopting EU position of complementing direct payments up to year 2001 level significant aggravation of farm incomes at aggregate level could be expected – according to EAA results for about 15 % and in accordance with APAS-PAM forecast even more than a quarter due to negative production effects, imposed by depressed price level. Complementing direct payments from national budget up to the level eligible by current Member states would not result in marked improvement of agricultural income. GVA estimates depend on the outcome of accession negotiations regarding production quotas and reference quantities. Nevertheless, adopting current position of EU would result in stagnation of activities with relative high price level in pre-accession period (pork, poultry) and improvement position of activities which receive greater support under CAP and which economic position was extremely unfavourable in the pre-accession period (beef, coarse grains). 100 % level of direct payments would drastically change support hierarchy of agricultural commodities in Slovenia, while the positive and negative effects would be almost balanced out at the aggregate level.
Visoka tržno-cenovna zaščita prireje mleka je dejstvo evropske kmetijske politike, vendar pa ob postopnem zniževanju zaščite kmetijstva pridobivajo na pomenu različne oblike proračunskih podpor, ki ...nadomeščajo zmanjšanje dohodka. Zaenkrat še ni jasno določeno, ali bodo teh ukrepov v celoti deležne tudi bodoče članice Evropske unije (EU). V prispevku so ocenjeni učinki različnih ravni neposrednih plačil in strukturnih podpor na slovenski trg z mlekom. Analizirali smo dohodkovni položaj prireje ter blaginjo pridelovalcev, porabnikov in davkoplačevalcev. Z metodo PAM (“Policy Analysis Matrix”) v kombinaciji z modelom APAS (“Agricultural Policy Analysis Simulator”) smo ocenili omenjene ekonomske parametre in upoštevali različne politične scenarije. Za obdobje po pristopu smo analizirali učinke različnih scenarijev prevzema ukrepov Skupne kmetijske politike (SKP). Rezultati kažejo, da ima obseg prevzema proračunskih podpor izrazit vpliv na obravnavane ekonomske parametre, zato kaže pri pogajanjih o pristopu Slovenije k EU vztrajati pri popolnem prevzemu ukrepov SKP. Če Slovenija pristopi pred naslednjo reformo tržnega reda za mleko, bodo imele sprva večji pomen strukturne podpore, po letu 2005/06 pa bo večji učinek neposrednih plačil. Pristop Slovenije brez neposrednih plačil in strukturnih podpor lahko povzroči nazadovanje prireje mleka v Sloveniji, ki tudi ob najugodnejšem scenariju zaradi nizke konkurenčnosti nima obetavne razvojne perspektive. Ob ustrezni strategiji oblikovanja kmetijske politike v predpristopnem obdobju je zadovoljiv izid pristopnih pogajanj verjetnejši.
After accession to European Union in 2004 direct payments became very important income source also for farmers in Slovenia. But agricultural policy in place at accession changed significantly in year ...2007 as result of CAP reform implementation. The objective of this study was to evaluate decision making impacts of direct payments scheme implemented with the reform: regional or more likely hybrid scheme. The change in farm production structure was simulated with model, applying gross margin maximisation, based on static linear programming approach. The model has been developed in a spreadsheet framework in MS Excel platform. A hypothetical farm has been chosen to analyse different scenarios and specializations. Focus of the analysis was on cattle sector, since it is expected that decoupling is going to have significant influence on its optimal production structure. The reason is high level of direct payments that could in pre-reform scheme rise up to 70 % of total gross margin. Model results confirm that the reform should have unfavourable impacts on cattle farms with intensive production practice. The results show that hybrid scheme has minor negative impacts in all cattle specializations, while regional scheme would be better option for sheep specialized farm. Analysis has also shown growing importance of CAP pillar II payments, among them particularly agri-environmental measures. In all three schemes budgetary payments enable farmers to improve financial results and in both reform schemes they alleviate economic impacts of the CAP reform.
This rapid communication presents main results of the analysis of the income impacts of different direct payment policy options after the accession of Slovenia to the EU at the level of agricultural ...households. By applying static deterministic total income model, different post-accession direct payments policy options were investigated, with special attention given to the 2003 Common agricultural policy (CAP) reform provisions. The main conclusions based on model results are: i) the improved post-accession income situation of analyzed households under all post-accession policy scenarios, ii) standard direct payments scheme estimated as income most benefi cial, followed by basic fl at-rate area payment option (entirely decoupled) and iii) detection of possible redistributive impacts of 2003 CAP reform in favour of agricultural households engaged in extensive agricultural production.
This paper is concerned with the estimation of financial effects of farming in Slovenia. First it describes the evolution of farm management accounting and limitations of some techniques which are ...still often subject of discussion in Slovenia. It lists main records necessary for compiling gross margin accounts as the most promising method for farm business analysis and planning. The practical part of this report is concerned with limited survey to estimate profitability of farming on a sample of 15 Slovenian farms. The procedure of data collection is described and questions about reliability of results given existing circumstances (absence of book-keeping) are emphasised. An appropriate spreadsheet for profit calculation has been designed and additional subroutines created as tools for discovering weaknesses and strengths of existing practice. Calculations show positive financial results for year 1994. Values range between 113,000 and 1.772,000 SIT (nominal values). Given the labour consumed for farming, results indicate poor returns to inputs and call for better management with the resources available. Crude diagnosis claims for a reduction in fixed costs per unit of output and an increase in the intensity of production. Possible changes in the medium to long term are indicated, taking into account constraints from the wider business environment.
Slovenian livestock production is facing different agricultural policy and economic environment as is the case in EU. Despite modest reforms of national agricultural policy it is still incomparable ...with common market organisations of CAP. Different levels of market-price support for major livestock commodities is another aggravating circumstance for efficient adjustment. Therefore different policy measures have to be taken into account simultaneously for policy relevant analysis (income effects, welfare efficiency). Applying APAS-PAM agricultural sector model for Slovenian agriculture the most important income and welfare effects of Slovenian EU accession on producers, consumers and taxpayers as well as net welfare effects for baseline and three accession scenarios have been simulated. Results obtained show potential improvement of incomes in dairy farming and cattle fattening only for most optimistic accession scenario (complete adoption of Agenda 2000 CAP), while deterioration is foreseen in pig and poultry farming irrespective of accession conditions. Producer surplus indicates similar trends, while consumers are expected to be beneficiaries due to lower market-price support. Main part of producer income support burden will be transferred to taxpayers. Irrespective of accession scenario net welfare effects for pork and poultry are favourable, while opposite could happen in milk and beef sectors.
The estimation of gross value added (GVA), applying the extended economic account for agriculture (EAA) model and the partial equilibrium APAS-PAM model, is carried out to emphasize the importance of ...complementing the Common Agricultural Policy (CAP) direct payments from the national budget for farm incomes in Slovenia after its accession to the European Union (EU). Adopting the EU position of complementing direct payments up to the 40 percent level, a significant decline of farm incomes at the aggregate level could be expected as a result of depressed price levels. Complementary direct payments up to the 100 percent level would not result in significant improvement of agricultural income, but would drastically change the support hierarchy of agricultural commodities in Slovenia.
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