PRODUCTION FACTORS AND ECONOMIC RESULTS OF SMALL FARMS IN SELECTED EUROPEAN UNION COUNTRIES

The study attempts to assess production factor and the economic performance of small farms in the European Union. A small farm was defined in accordance with the methodology used by Farm Accountancy Data Network (FADN), with economic size from 8 thou. up to 25 thou euro. The conducted analysis indicates a significant differentiation in the resources possessed (land, labour and capital) and achieved economic and production results. The highest labour productivity (VA/AWU) was achieved by Danish farms (20.7 thousand euros), while the highest rate of asset productivity (0.78) was reached by French farms. In the analysed sample of small farms, the farms with "fieldcrops" orientation prevailed. All analysed production types of small farms, despite significant differences in possessed resources, achieved positive income from farming activities. They were characterized by very low indebtedness of own capital, reached a positive balance of cash from operating activities and performed a negative asset replacement rate.