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Business results change under effects of farm size and degree of production specialization

Author(s): Bastajić Ljubomir

Journal: Journal of Agricultural Sciences
ISSN 1450-8109

Volume: 48;
Issue: 2;
Start page: 205;
Date: 2003;
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Keywords: farm size | cultivable land | business conditions and results | degree of specialization

The study was conducted with the objective of analyzing the economic effects provoked by the change in farm size, depending on the degree of production specialization (questionnaires encompassing 30 farms of different size were used) using comparative analysis, regression analysis, correlation analysis and production function analysis. Research comprised essential parameters of business conditions on the farms and results of their business. The farms analyzed were classified according to the size of used cultivable land and degree of production specialization. In both farm groups, with different degrees of production specialization, the indices of business results were found to rise with size increase and were noticed to be the most favorable in the case of over 10 ha-farms. Comparing farms of identical size but of different degree of specialization, the following may be concluded: more favorable business results were achieved on farms with higher degree of specialization.
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