Agriculture constitutes a very important sector in the Slovak economy that generates in addition to the basic food production also services, provides jobs, has a significant impact on regional development and provides nutrition of the population. One of decisive factors influencing the economic stability of agriculture is production efficiency which is strongly linked to support policy, through which partially is ensured the financial availability of enterprises. The use of subsidies by the EU is very important tool for ensuring economic sustainability of agriculture in the Slovak Republic conditions. The aim of this paper is economic evaluation of primary agricultural production in manufacturing and economic conditions in the Slovak Republic and their alternative comparison with selected EU Member States. The paper also refers to differences in level of subsidies in selected countries in the EU and their impact on possibilities of investing funds into the production development. Our calculations showed that without the intervention of the Common Agricultural Policy of the EU (especially subsidy policy) would be Slovak agriculture economically unprofitable, what could lead to its failure.
Potatoes are one of many agricultural commodities whose realization on the market is connected with considerable swings. Growing areas were decreased, yield per hectare and the total annual production were very low, and potato prices substantialy fluctuated. The absence of domestic potato production had to be supplemented by potato import. The pasive balance in the foreign trade with this commodity was deepened.The economy of potato production is greatly influenced by state subsidies. The subsidy share in refundment of cost and in incomes without subsidies is high. Profitability of potato production is low. The potatoes grown in Slovakia are not competitive in comparison with the EU contries.
The agricultural sector in the Czech and Slovak Republic has problems in big and also in small farms. The pa- per is based on the assumption of the family farm algorithm, which is focused on the plant production. A family farm is represented by two adults and two children. The aim is to calculate the minimum size of the farm in hectare needed to achieve the average income (in the national economy) of the 4-member family in the Czech Republic and in Slovakia. The algorithms for determining the size of a family farm focused on crop farming in the corn production area in the economic and production conditions of the Czech Republic and the Slovak Republic were given the following inputs: the average annual income of a 4 member family, own costs for chosen crops, prices crops, average subsidies for agricultural land, average annual harvests of chosen crops. Data were obtained from the ministries of agriculture and statistical offices from both states. We calculate the average 4 member family in Slovakia needs to earn minimum 16 77.44 Euro per year and in the Czech Republic 18 322.08 Euro per year. The results of the paper proved that, according to the model of an average farm focused on crop production, the acreage of 89.99 ha in Slovakia and 122.31 ha in the Czech Republic of agricultural land needs to have one family farm. We are calculating with following commodities: wheat, barley, grain maize, sunflower, oil rape, potatoes and pea. One way to track changes in farm structure is to examine trends in the average size of holding, or average herd size in the case of livestock farms. However, this measure can seriously underestimate the pace of change where much of the growth (in area farmed, or in livestock numbers) takes place on the larger holdings. The persistence of many small holdings, even though the share of the land or livestock that they control is small and may be falling, tends to mask the extent of structural change as measured by averages. The aim of submitted paper is to determine the minimum size of agricultural land of a small family farm focused on plant production in the economic and production conditions of the Czech and Slovak Republics. In the submitted paper the data on farmers has been used in Slovakia and the Czech Republic from the data of business calculations by Research Institute of Agricultural and Food Economics from Slovakia and Research Institute of Agricultural Economy from Czech Republic. Key words: farm size, agricultural land, crop production, crops, costs, prices, subsidies.
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