Pure and compensated efficiency of Swedish dairy farms

The compensatory effect of environmental subsidies for agri-environmental output constraints was evaluated through a comparative analysis observing the ‘pure’ efficiency, as a benchmark for prevailing production conditions, and the ‘compensated’ efficiency, as a proxy indicator of the compensation....

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Main Authors: Gordana Manevska-Tasevska, Ewa Rabinowicz, Yves Surry
Format: Article
Language:English
Published: Scientific Agricultural Society of Finland 2016-08-01
Series:Agricultural and Food Science
Subjects:
Online Access:https://journal.fi/afs/article/view/53182
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author Gordana Manevska-Tasevska
Ewa Rabinowicz
Yves Surry
author_facet Gordana Manevska-Tasevska
Ewa Rabinowicz
Yves Surry
author_sort Gordana Manevska-Tasevska
collection DOAJ
description The compensatory effect of environmental subsidies for agri-environmental output constraints was evaluated through a comparative analysis observing the ‘pure’ efficiency, as a benchmark for prevailing production conditions, and the ‘compensated’ efficiency, as a proxy indicator of the compensation. An unbalanced data panel covering 3578 Swedish dairy farms in the period 2002-2012 was used. The analysis showed that in the study period, environmental farm support decreased the differences in farm revenue generated by agri-environmental output constraints in Sweden. However, the environmental support distribution did not succeed in meeting regional needs, so difficulties in farmers’ ability to generate output in southern and central forest and valley areas of Sweden were visible. Furthermore, the environmental agricultural support had only a partial subsidisation effect on ‘green’ farm management practices, with full compensation being achieved for organic and capital-extensive farming, whereas low livestock density farming was not sufficiently compensated. This analysis reveals incentives with policy implications for farm economic performance and provides direct input to future policy recommendations for environmental support allocation.
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spelling doaj.art-9976e3664e7040f5b10098e8d0c7309c2022-12-21T21:20:00ZengScientific Agricultural Society of FinlandAgricultural and Food Science1459-60671795-18952016-08-0125210.23986/afsci.53182Pure and compensated efficiency of Swedish dairy farmsGordana Manevska-Tasevska0Ewa Rabinowicz1Yves Surry2Swedish University of Agricultural Science, Department of Economics, AgriFood Economics CentreSwedish University of Agricultural Science, Department of Economics, AgriFood Economics CentreSwedish University of Agricultural Science, Department of EconomicsThe compensatory effect of environmental subsidies for agri-environmental output constraints was evaluated through a comparative analysis observing the ‘pure’ efficiency, as a benchmark for prevailing production conditions, and the ‘compensated’ efficiency, as a proxy indicator of the compensation. An unbalanced data panel covering 3578 Swedish dairy farms in the period 2002-2012 was used. The analysis showed that in the study period, environmental farm support decreased the differences in farm revenue generated by agri-environmental output constraints in Sweden. However, the environmental support distribution did not succeed in meeting regional needs, so difficulties in farmers’ ability to generate output in southern and central forest and valley areas of Sweden were visible. Furthermore, the environmental agricultural support had only a partial subsidisation effect on ‘green’ farm management practices, with full compensation being achieved for organic and capital-extensive farming, whereas low livestock density farming was not sufficiently compensated. This analysis reveals incentives with policy implications for farm economic performance and provides direct input to future policy recommendations for environmental support allocation.https://journal.fi/afs/article/view/53182compensated technical efficiencydairy farmsenvironmental supportpure technical efficiencySweden
spellingShingle Gordana Manevska-Tasevska
Ewa Rabinowicz
Yves Surry
Pure and compensated efficiency of Swedish dairy farms
Agricultural and Food Science
compensated technical efficiency
dairy farms
environmental support
pure technical efficiency
Sweden
title Pure and compensated efficiency of Swedish dairy farms
title_full Pure and compensated efficiency of Swedish dairy farms
title_fullStr Pure and compensated efficiency of Swedish dairy farms
title_full_unstemmed Pure and compensated efficiency of Swedish dairy farms
title_short Pure and compensated efficiency of Swedish dairy farms
title_sort pure and compensated efficiency of swedish dairy farms
topic compensated technical efficiency
dairy farms
environmental support
pure technical efficiency
Sweden
url https://journal.fi/afs/article/view/53182
work_keys_str_mv AT gordanamanevskatasevska pureandcompensatedefficiencyofswedishdairyfarms
AT ewarabinowicz pureandcompensatedefficiencyofswedishdairyfarms
AT yvessurry pureandcompensatedefficiencyofswedishdairyfarms