Year 2024, Volume 9, Issue 3
| Year : | 2024 |
| Volume : | 9 |
| Issue : | 3 |
| Authors : | Aleksandar MILJATOVIĆ, Mirela TOMAŠ SIMIN, Tihomir NOVAKOVIĆ, Veljko VUKOJE |
| Title : | ASSESSMENT OF ECONOMIC VIABILITY AND INCOME GAP OF SERBIAN FARMS |
| Abstract : | The issue of economic viability in agriculture has specially intrigued researchers’ attention in recent years. Ensuring economic viability of family farms, as the dominant entities in Serbian agriculture, is the main precondition for survival and development of rural areas. The paper aims to evaluate the level of economic viability of family farms and to determine the income gap for non-viable farms. To assess farm economic viability, an opportunity cost approach was used. Farm net income was compared with reference income in order to make a distinction between viable and non-viable farms. The focus was on non-viable farms and determination the income gap as the difference between farm net income and the viability threshold. The income gap shows how far from the viability threshold were non-viable farms and was calculated as a percentage of the reference income. The research was based on Serbian Farm Accountancy Data Network (FADN) from 2015 to 2021. The results have shown that the proportion of economically viable farms have obvious tendency of growth in the observed period. The highest share of economically viable farms was found in horticulture farming system. In contrast, the highest proportion of non-viable farms was recorded in other grazing livestock. The non-viable grazing livestock farms also have quite high income gap ratio, indicating a significant distance from the viability threshold. This implies the need to empower livestock farming, especially extensive livestock, in order to improve economic viability level of farms. |
| For citation : | Miljatović, A., Tomaš Simin, M., Novaković, T., Vukoje, V. (2024). Assessment of economic viability and income gap of Serbian farms. AGROFOR International Journal, Volume 9. Issue No. 3. pp. 77-84. DOI: 10.7251/AGREN2403077M |
| Keywords : | Economic viability, income gap, family farms, FADN, Serbia. |
| download paper | |
ISSN 2490-3434 (Printed)
ISSN 2490-3442 (Online)
ISSN 2490-3442 (Online)
For authors
For reviewers
Search
AgroSym Symposium Archive