AREA OR ECONOMIC SIZE? THE ROLE OF SPECIALIZATION IN PRODUCTIVITY CONVERGENCE OF SUBSISTENCE FARMS IN CENTRAL AND EASTERN EUROPE FROM 2005 TO 2016
AREA OR ECONOMIC SIZE? THE ROLE OF SPECIALIZATION IN PRODUCTIVITY CONVERGENCE OF SUBSISTENCE FARMS IN CENTRAL AND EASTERN EUROPE FROM 2005 TO 2016

Summary/Abstract: Aim: The aim is to provide an economic analysis of the extent to which the area size and economic sizeof small farms below 5 ha helped productivity development for survival in the EU-10 after joining the EU(period 2005‒2016). Methods: Based on Eurostat data, a special database was established. The indicesapproach was used to analyze productivity development. Dynamics of capacity variables (number, utilizedagricultural area, and standard output) and productivity indicators (average farm size, area productivity,and total productivity) were calculated. The distance of the EU-10 averages from the EU-15 was measured.Ten specialist farm types were observed in the following categories: below 2 ha, 2.0‒4.9 ha, below 5 ha,below 2,000 EUR, below 2 ha and 2,000 EUR, and below 5 ha and below 2,000 EUR. Results: EU-10:a) The decline in the number of very small specialist farms was below the average; b) The dynamics of botharea and total productivity of specialist farms exceeded EU-15 averages; c) In subsistence farms, the eco-nomic size was more supportive of increasing productivity, while in semi-subsistence farms, the area sizewas more supportive of increasing productivity; d) Small specialist semi-subsistence farms with an outputbelow 2,000 EUR contributed more to convergence; e) The gap of specialist subsistence farms below2,000 EUR between the EU-10 and EU-15, both in total and area productivity, increased. Conclusions:Farms below 5 ha in the EU-10 increased productivity, more so in specialist semi-subsistence farms, sup-porting convergence. Poland has achieved outstanding growth in convergence related to small specialistfarms, both in terms of area and economic size. The dynamics of indicators for specialist semi-subsistencefarms contributed to convergence in Poland, Hungary, and Romania.

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