No 1/2017, March

A Comparative Analysis of Organic and Conventional Farming Profitability


The objective of this article is to determine the economic performance of organic farms compared with conventional farms. The analysis included a set of farms the concentration of which is in natural and climatic conditions typical for this type of farming high. The outputs may be therefore considered representative and generalised.In order to determine the performance of these farms, their production basis was first assessed by using the indicators of available assets and assets coverage resources. Consequently, their efficiency was assessed based on the profit. For the purposes of comparison, the profit was (in various forms) converted to a hectare of agricultural land. The economic results were also compared with the average level achieved in the EU. The final part of the research focused on the evaluation of the economic and financial standing of the farms using selected return, liquidity, debt, and activity related ratio indicators. The established results show that the situation of organic farms on the national level tends to be economically more favourable. This is demonstrated by the higher share of profit-making farms and more favourable values of certain ratio indicators, i.e. those concerning profitability, liquidity, and interest coverage. The comparison with the average values achieved in the EU revealed a significantly more favourable situation in the Czech Republic.

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Do Sunspots Matter for Cycles in Agricultural Lending: a VEC Approach to Russian Wheat Market


In this article, we test a hypothesis about the influence of sunspot cycles on cycles of agricultural lending on example of wheat market. Analyzing data on Russian wheat market for period from 1990 to 2015 we test a hypothesis of solar activity’s impact on cycles in agricultural lending in the short and long run. Using a vector error correction approach to the sample, we obtain the following results: in the long run, sunspots, wheat yield, world wheat prices, and non-performing loans (NPL) for wheat market are related. In the short run, level of non-performing wheat loans depends only on wheat yields. However, results of Granger causality test confirm that wheat yield dynamics and sunspots Granger cause non-performing bank loans in Russia, which confirms our hypothesis of solar activity importance for agricultural lending activity.

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The Change of Comparative Advantage of Agricultural Activities in East Java Within the Context of Asean Economic Integration


This paper analyses changes on agricultural trade patterns of East Java, Indonesia, versus six main ASEAN exporter countries. Based on the trade flow information, there are some dynamics of comparative advantage and export specialization from 2007 to 2013 in the 545 commodities comprising the agricultural sector. Products are mapped into four-different quadrants according to their level of comparative advantage and export specialization. Advantage-specialization appears to be important features of agro-trade for ASEAN countries because most of the growth in exports is under those competitive commodities. Little diversification towards new products has been found in the recent years. Gains appear to be larger than the losses due to international openness, while opportunities within the region have not been exploited. Agro-trade in the region still focuses towards extra-ASEAN and enjoys high levels of advantage- specialization in some key commodities. A large number of commodities were found to have little competition within ASEAN.

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Information Security and Risk Analysis in Companies of Agriresort


Information and communication technologies are a tool to streamline production, and therefore they must be properly secured. The article is aimed at solving security and protection of agribusiness ICT. For a more detailed analysis of this issue there has been carried out a research. Its partial results were submitted to statistical analysis and are presented in the following article. The basic prerequisite for the implementation of any safety measures is the risk analysis when properly conducted it enables the effective implementation of safety measures and the corresponding potential threats and protected values of organization. The main aim of this paper is to assess the impact of particular forms of ICTs on protection, determination of the possible impact of the implementation of the risk and threat analysis for the enterprise.

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Exploring the Use of Mobile Phones for Public Participation in the Buffalo City Metropolitan Municipality


This study investigated the factors that influence the intention of citizens to use their mobile phones to increase their participation in local government. It examined whether gender and age can be used to moderate the effect of these factors. The research was conducted in Buffalo City, a municipality in South Africa. The research used a questionnaire survey to collect quantitative data and semi-structured interviews to collect qualitative data. Data was collected from people aged between 18 and 55 who have no access to fixed-line Internet at home but are instead primarily accessing the Internet via their mobile phones. The study found that the acceptance of mobile phones as a means for public participation is largely a matter of designing mobile participation solutions that support and enhance the performance of citizens. Citizens are fairly accustomed to mobile technology, and this increases the likelihood that they would willingly adopt mobile participation solutions if they offer tangible gains when compared to current methods. Older citizens would require support in familiarizing with the new technology, while all citizens place the availability of reliable organizational and technical infrastructure as an important predictor of their intention to use. The influence of friends and family members was an important factor in citizens’ intention to use. Gender did not have any significant effects on the factors that affect intention to use. Age was a significant moderator with younger citizens requiring quick and convenient ways to interact with government while older people looked for more efficient ways of reaching government which should in turn lead to improved quality in services delivered.

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User-Technological Index of Precision Agriculture


User-Technological Index of Precision Agriculture (UTIPA) is a comprehensive system based on mutual sharing of opinions and experience within community of people related to precision agriculture - farmers, technology suppliers and researchers. The main benefit of UTIPA is the possibility to use the calculated index level for particular technology (method) for precision agriculture and compare it to other technology with regards to different users, crops, regions etc. It evaluates the principle of a technology but does not take into account concrete products, brands or manufacturers. The index has significance for the presentation of the potential of precision agriculture, development planning and especially for the connection between technological innovativeness and usefulness for practice.The entire solution includes the methodology for the collection, processing and presentation of data and software and is available via a Web interface for all common device platforms. Anyone who has interest in precision agriculture and contributes their knowledge can use the collected data.

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Comparative Study of Short-Term Time Series Models: Use of Mobile Telecommunication Services in CR Regions


In the area of time series analysis and prediction there are comparatively many methods available, out of which the extrapolation method has been practically applied most often. Currently, combined models have been serving more and more in experimentation. This study is aimed at construction of adequate models of the indicators observed development tendencies, assessment of selected individual models and subsequent aggregation of these into combined models, including a comparative analysis of both types of models. To find suitable candidates for predicting within the time series analysed, SAS system has been used. Outcomes of the empirical study have shown promising results in the use of combined models for time series processing. The techniques presented in the paper are illustrated with examples of short-term time series on monthly and quarterly basis, in the field of mobile telecommunication services, their consumption and use in various regions of the Czech Republic. A description of the current state of use of selected services in separate CR regions, including urban and rural areas, is a natural part of the paper. ICT including mobile phones and use of mobile services, especially in rural areas, is still widely discussed topic.The research was prepared with the support of the Internal Grant Agency of the Faculty of Economics and Management of the Czech University of Life Sciences, within the project „Methodological Approaches to Identify Economically Weak Regions in the Border Areas of the Czech Republic“(No. 20151035).

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Agricultural Insurance and Bounded Rationality


Bounded rationality influences the individuals making decisions. Rationality of decisions is limited by the complexity of the decision problem, the cognitive limitations of decision makers, and the time available to make the decision. One specific case of this situation is decision on the agricultural insurance. The success of agricultural activity is highly dependent on environmental influences in the region. These risks can destroy entire harvest or exterminate a whole herd of livestock. The Czech Republic, through the Support and Guarantee Fund for Farmers and Forestry, provides farmers and forest managers with a contribution to cover the costs of the payment of insurance against unforeseen damage for already several years by which it affects decision-making about insurance. The article discusses the rationality of decision on the agricultural insurance using decision model under risk.

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Valuation of Public Goods: The Case of Emissions from Livestock Holdings in the Czech Republic


Designed paper is focused on the analysis of public goods in the form of greenhouse gas emissions in livestock production in Czechia. The main aim of the paper is to quantify the amount and valuation of greenhouse gas emissions produced in beef cattle breed (dairy and meat), pig breed, and poultry breed (meat and eggs). The partial aim of this paper is to compare greenhouse gas emissions production across sectors of livestock production and to evaluate a development of volume, value and share of emissions as a form of public goods. The methodology is based on the conceptual model MITERRA-Europe (The model was developed to assess the effects and interactions of policies and measures in agriculture on N losses and P balances at a regional level in EU-27), which is partly based on the CAPRI (Common Agricultural Policy Regionalised Impact) and the GAINS (Greenhouse Gas and Air Pollution Interactions and Synergies) models using the tools for quantification of the emission factors indicators defined by the IPCC (Intergovernmental Panel for Climate Change) organizations. Part of the solution is to determine the value of public goods quantified through a European platform for carbon emissions trading with its futures contract based on the EU Allowances. The result of this paper is quantified emission value of public goods in livestock production in Czechia and their appreciation in the period 2000-2014. In the final consequence is quantified the proportion of the value of public goods in the total production of the analyzed livestock sector.

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Assessment of the Agricultural Performance in Central and Eastern European Countries


Based on selected individual data acquired from Farm Accountancy Data Network database the output efficiency of agriculture in Central and Eastern European countries at national level is evaluated. Moreover, the output oriented constant returns to scale Data Envelopment Analysis approach is applied in order of Malmquist productivity index calculation. Analysis includes two output variables and six input variables. The data were provided on request from Farm Accountancy Data Network for ten Central and Eastern European Countries and period 2004-2012 (in case of Bulgaria and Romania 2007-2012). Based on the results, the average Total Factor Productivity growth in Central and Eastern European region over the period 2004-2012 was 1.99%. Moreover, it can be concluded that the Total Factor Productivity growth was mainly the result of Technological Change.

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