Economic and Financial Standing of Farms in European Union Countries at Various Levels of Labor Productivity

The main purpose of this paper is to depict the economic and financial standing of farms in European Union countries demonstrating various levels of labor productivity. The study was based on the FADN database. Data from 2013-2015 was used. Some results were compared to corresponding figures from 2007-2009. The study population was divided into quartiles by level of net value added per FTE. The division was validated with the ANOVA variance analysis. Afterwards, selected characteristics were calculated to reflect the economic and financial standing of EU farms in 2013-2015, grouped into quartiles. There was a noticeable growth of the average net value added per FTE in the study period. Over the years covered by this study, the size of farms and the scale of farming operations were the drivers of improvement of labor productivity in EU farms. Another factor stimulating the improvement of labor productivity was a greater availability of other productive inputs, i.e. land and capital. The key role of payments for the development of labor productivity and profitability was also noted. Farms demonstrating higher levels of labor productivity were more willing to borrow funds and invest.