Links Between Farm Size, Location and Productivity of Farms in the Czech Republic

Abstract

This paper aims to examine the productivity of Czech farms with dependence on their size and natural conditions. The methodological approach is based on the analysis of variance (ANOVA), which enables to assess whether there are significant differences between groups of farms with different size and from different locations in terms of their productivity and profitability. We use data from the FADN CZ database for the period 2015–2020 and show that very large and large farms reach substantially higher productivity in all regions, whatever the natural conditions are. Results confirmed that farms in areas without natural constrains achieve statistically significantly higher levels of all productivity indicators in comparison with farms located in areas with natural constraints. The results also showed that the agricultural policy is decisive for functioning of small farms. The subsidies have a greater effect on smaller farms than on their larger counterparts.