Farm Model And Analysis Of Typical Agricultural Holdings, Case Of Arable Farming In Slovenia

In this paper we present farm model applied to analyse arable farming sector in Slovenia.

The rationale for the farm-level model is mainly based on the growing demand and need for a micro-simulation tools that can design and analyse different farm-level policies, capturing the heterogeneity of farms, both in terms of representation and impact of different policies. In this paper we focus on economic indicators that are extrapolated from farm level to the sector level. Approach is prepared to support national Strategic plan of the CAP.

Preliminary results suggest that the developed approach allows such simulations, as it mimics the situation in the field well enough according to statistical and other available data. According to the results, 6% of farms with arable production contribute 9.6% of the total revenue generated in agriculture. Model results show that farms in arable sector could achieve good results, on average up to 24 EUR GM/h.

The effects of economies of scale are particularly evident on larger farms, where results could range almost up to 40 EUR GM/h. However, the importance of subsidies is very high and, in most cases, exceeds the level of GM achieved. Thus, a more pronounced deterioration after the reform can be expected.

Key words: Farm model, typical agricultural holding, arable farming, strategic plan