Labour Forceas a Factor Improving Efficiency of Agricultural Economic Activity in the EU

Abstract

The study comprises an analysis of technical efficiency of EU agriculture at the regional level. Investigations were based on data concerning average farms representing individual regions of the European Union, retrieved from the FADN system. These entities covered crop farms and dairy farms. Efficiency of individual entities was assessed using the Data Envelopment Analysis (DEA). Results were compared to the basic unidimensional economic indexes of individual entities taking into consideration also different operation periods of the regions within the EU. Productivity of labour turned out to be the decisive factor in determining the level of farm efficiency. Conducted analyses may constitute a starting point for the evaluation of proposed reforms in the Common Agricultural Policy in the new financial perspective.