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Projects / Programmes source: ARIS

Development of farm model for systematic monitoring of the economic situation and impact assessment of the agricultural policy at the level of typical agricultural holdings

Research activity

Code Science Field Subfield
4.03.08  Biotechnical sciences  Plant production  Economics of agro-food processing and rural development 

Code Science Field
S187  Social sciences  Agricultural economics 

Code Science Field
4.01  Agricultural and Veterinary Sciences  Agriculture, Forestry and Fisheries 
Keywords
Typical agricultural holdings, farm model, model calculations, mathematical programming, ex-ante/ex-post analysis, impact assessment
Evaluation (rules)
source: COBISS
Researchers (13)
no. Code Name and surname Research area Role Period No. of publicationsNo. of publications
1.  25013  MSc Matej Bedrač  Plant production  Researcher  2018 - 2022  208 
2.  38630  Jure Brečko  Plant production  Researcher  2018 - 2022  148 
3.  06096  Tomaž Cunder  Plant production  Researcher  2018 - 2022  489 
4.  53771  Ana Hiti Dvoršak  Plant production  Researcher  2020 - 2022  84 
5.  14979  Damjan Jerič  Plant production  Researcher  2018 - 2022  94 
6.  13487  PhD Stanko Kavčič  Plant production  Researcher  2018 - 2022  408 
7.  30768  PhD Tina Kocjančič  Animal production  Researcher  2018 - 2022  36 
8.  24297  PhD Maja Kožar  Plant production  Researcher  2018 - 2022  209 
9.  25012  MSc Ben Moljk  Plant production  Researcher  2018 - 2022  383 
10.  17854  Marjeta Pintar  Plant production  Researcher  2018 - 2020  183 
11.  10035  PhD Jože Verbič  Animal production  Researcher  2018 - 2022  1,009 
12.  17853  Barbara Zagorc  Plant production  Researcher  2018 - 2022  399 
13.  29649  PhD Jaka Žgajnar  Animal production  Head  2018 - 2022  249 
Organisations (3)
no. Code Research organisation City Registration number No. of publicationsNo. of publications
1.  0481  University of Ljubljana, Biotechnical Faculty  Ljubljana  1626914  67,939 
2.  0401  Agricultural institute of Slovenia  Ljubljana  5055431  20,340 
3.  1394  Kmetijsko gozdarska zbornica Slovenije Kmetijsko gozdarski zavod Murska sobota (Slovene)  Murska Sobota  5129940000  455 
Abstract
Modern approaches of result-oriented agricultural policy gain on importance, which reflects also in the increasing need for micro-simulation tools that enable different impact assessment of policies at the level of agricultural holdings. Such models enable better understanding of decision-making and management at the level of agricultural holdings, and on the other hand enable policy-makers to make better decisions. Agricultural models have thus become an important tool in the last 15 years and present major activities of agricultural economists. A number of different models have been developed in the EU and beyond, that in a large part are based on the concept of mathematical programming. Lather has many advantages, particularly in the case of an ex-ante impact assessment and considering production activities for which there is no time series. In Slovenia, we already have quite a lot of experience with models and modelling. In order to carry out the task within the proposed project, the most appropriate seems to be the farm model (MKMG), which was designed and developed in the framework of the project (CRP V4-1423) and is based on the model calculations of the Agricultural Institute of Slovenia (MK KIS) as a key source of analytical and economic results at the level of production activities. Due to the diversity of likely impacts of policies, changes in price-cost ratios, in technology and production, as well as innovations on individual farms, the use of such micro-models providing, from that point of view, estimates that are more reliable and different impacts at the level of different farm types is increasingly important. Of course, such an analysis at the level of each particular holding is almost impossible and for this purpose of such a study also pointless. Consequently, it is necessary to define hypothetical agricultural holdings that best represent the situation in a particular segment of a particular sector, which can be further concluded at the aggregate level. These are typical agricultural holdings. However, the typology of agricultural holdings is not important only because of their usefulness in effective planning of agricultural policies, but also for discussion and support of proper pathways for the development of multifunctional and sustainable agriculture. This enables a sort of benchmark of real agricultural holdings in a particular production sector and economic size. From this point of view, such an approach can also be a supportive tool for advisory service. Therefore, in the framework of the proposed project, we will primarily define typical agricultural holdings that will best reflect the situation in Slovenian agriculture. In such a manner, individual production types will be divided further both by economic size and production technology, which is often regionally conditioned. Taxonomy will be carried out by analysing the latest results at the level of standard outputs of all agricultural holdings in Slovenia and discussed and harmonised with governmental and non-governmental experts. For this purpose, we will organize special one-day workshops. Individual types of agricultural holdings will be defined at the level of the annual production plan, considering key production activities and different groups of production constraints that individual farm face. Furthermore, for the needs of this project, we will upgrade the already developed farm model (MKMG), both by adding new production activities and technologies as well as by expanding the range of production constraints in order to be able to analyse all defined agricultural holdings. In addition, the system of model calculations (MK) will be further upgraded and adapted, with particular emphasis on the integration of new production activities, technologies and production intensities that are still needed for the proper functioning of the farm model. Additionally, simplified environmental indicators will be added at the level of model calculatio
Significance for science
Project implementation would mean upgrading of already developed tools in the field of mathematical programming in Slovene agriculture. Its application would bring foremost automatization in direction of utilisation of different data for analytical monitoring in agriculture, based on typical farms. Established typology of agricultural holdings and providing periodical analysis at that level, means new approach also at professional level and could significantly upgrade current advisory work on farms. Simultaneous assessment of the environment effects of agriculture practices on typical farms means innovative approach both in the scientific as well as professional fields in Slovenia and also wider area. Upgrade of already developed microeconomic tools' will enable more objective monitoring of farm holdings development. Developed model will be useful for systematic monitoring on typical as well as real farm holdings. A developed tool for assessing the economic and environmental performance of management at the level of typical holdings could serve as a reference tool in other economic analyses at the level of agricultural holdings. Results obtained could enter as inputs also in other tools to analyse agriculture both at micro and macro level. Importance for science and profession development is primarily in the development of a flexible model for comprehensive quality monitoring of the economic and partly environmental effectiveness of Slovenian agriculture and to support strategic planning at individual farm, sectoral and national level as a whole. Adaptation and upgrade of already developed modelling tools will contribute significantly to better and more scientifically supported insight of current situation and eventual improvements of agricultural holdings in Slovenia. Upgrade with environmental indicators will offer possibility for new dimension of Slovene agriculture’ impact assessment. The combination of both aspects will bring opportunities for scientific publication along with methodological improved analysis provided at farm level.
Significance for the country
Ex-post and ex-ante analyses at the level of typical farms could significantly support better business decision-making process of farms. Results obtained with developed model could serve as good benchmark for this decision process, particularly when analyses and results are up to date, which brings also necessity for periodical review. Through the implementation of this project in the set framework and subsequent regular application of the developed farm model, Slovenia will for the first time receive a tool that will enable this kind of support to business decision-making in agriculture. Frequently general insight in economic situation of individual farm holdings affects the quality of strategic decision-making. With the project, we want to upgrade some of the tools that have been developed so far to support decision-making and thus increase their usefulness for an individual farm level. Usefulness will be improved due to more objective comparison with other holdings, represented by typical agricultural holdings (i.e. with similar orientation or specialization, technology applied, intensity or scale of production). This kind of comparisons represent modern approaches in farm advisory to find weaknesses and potentials for improvement in farm management. By upgrading the farm model, we can expect positive shifts in the use of the results of this project in practice. Additional module for aggregation of typical farms outcomes to sectoral and national level could accelerate monitoring and ad-hoc analysis, offering new possibilities for comparison analyses.
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