What is it about?
Results show that, except for land in Slovenia and output in Hungary, cash limits are less important for farm size growth than natural factors, which are based on hopes for farm size growth and steady farm size reform. Big farms aren't growing as fast as small ones are.It is not true that farms in Hungary would get bigger if they got more help. When a farm grows to a certain size, it covers more land. In Hungary, a farm's debt depends on how much land it has, but in Slovenia, it depends on how much money the farm makes.
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Why is it important?
The idea that farm size growth depends on the size of the farm at the start and that smaller farms grow faster than bigger ones shows that it is not necessary to favour the fastest-growing smaller farms. This supports the use of a farm size policy that doesn't favour any particular size of farm when looking at how farm sizes change over time.
Perspectives
Further study on the influence of liquidity restrictions and subsidies at the farm-type level can be performed to see whether there is heterogeneity in the underlying interlinkages at the farm-type specialisation level.
Professor Imre Ferto
Centre for Economic and Regional Studies, Hungarian Academy of Sciences: Budapest
Read the Original
This page is a summary of: Financial constraints and nonlinearity of farm size growth, Journal of Advances in Management Research, June 2023, Emerald,
DOI: 10.1108/jamr-02-2023-0053.
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