The financial situation of agribusinesses in relation to climatic conditions: evidence from the V4 countries
The financial situation of agribusinesses in relation to climatic conditions: evidence from the V4 countries

Summary/Abstract: The aim of the article is to provide a detailed statistical description andevaluation of the mutual relationship between the development of two types ofagribusinesses’ cash flows which represent the capacities of farms to save and self-financein relation to changes in basic climatic parameters (i.e. temperature, precipitation).The calculations have been based on data obtained from the FADN (Farm AccountancyData Network) and the CCKP (Climate Change Knowledge Portal). The figures onthe V4 countries come from the period between 2004 and 2020. In terms of the networth of agribusinesses and the values of their capital, V4 countries could be splitinto two groups. In Hungary and Poland, the development of temperature changesand the net worth or enterprise capital levels are moving in the same directions, whileagribusinesses in Slovakia or Czechia, negative, but low correlation coefficients weremeasured. Regarding the relationship between cash flow and climatic conditions,we conclude that temperature changes are not happening to be a distinctive factor onthe level of countries, but rather something that the whole Central European regionhas in common: the trend is suggesting the existence of a slight growing tendency andconsequently pointing us to a direct relationship, but the nature of this relationship israther weak and not indicative. The interaction of cash flow and of the developmentof precipitation levels is showing relatively more dynamics and fluctuations for allagro-businesses in the researched V4 countries. This results in a rising trend line wherethe yearly precipitation level is ranging from approximately 500 mm to 750 mm. Agrobusinesses,mostly in Czechia and Slovakia, in the years when precipitation levelsexceed 750 mm per year report relatively lower levels of cash flows.

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