working party on agricultural policies and markets drivers

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Organisation for Economic Co-operation and Development TAD/CA/APM/WP(2020)2/ANN/FINAL Unclassified English - Or. English 29 May 2020 TRADE AND AGRICULTURE DIRECTORATE COMMITTEE FOR AGRICULTURE Working Party on Agricultural Policies and Markets Drivers of Farm Performance - Annex Empirical Country Case Studies Contact: Catherine Moreddu ([email protected]) JT03462282 This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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Organisation for Economic Co-operation and Development

TAD/CA/APM/WP(2020)2/ANN/FINAL

Unclassified English - Or. English

29 May 2020

TRADE AND AGRICULTURE DIRECTORATE

COMMITTEE FOR AGRICULTURE

Working Party on Agricultural Policies and Markets

Drivers of Farm Performance - Annex

Empirical Country Case Studies

Contact: Catherine Moreddu ([email protected])

JT03462282

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the

delimitation of international frontiers and boundaries and to the name of any territory, city or area.

2 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Note by the Secretariat

This analysis of drivers of farm performance, mandated under Expected Output

Result 2.1.2.3 of the 2017-18 Programme of Work and Budget of the Committee for

agriculture aims at empirically identifying the main conditions for, and obstacles to,

productivity and environmental sustainability of different types of farms in selected OECD

countries.

This study has been conducted by Professor Johannes Sauer (Technical University of

Munich) in collaboration with the OECD Farm-Level Analysis Network, and under the

responsibility of Catherine Moreddu.

The findings of the analysis are reported in three documents:

The Part 1 document contains a short description of the methodological framework

and data, an overview of findings by farm type, and conclusions

[TAD/CA/APM/WP(2020)2/PART1/FINAL]. It also includes three annexes.

Annex A contains the detailed methodology framework applied; Annex B contains

a review of the literature, and Annex C contains tables supporting the overview of

findings.

The Part 2 document contains the results of individual farm cases

[TAD/CA/APM/WP(2020)2/PART2/FINAL].

An annex document contains a series of background tables for each case study,

including descriptive statistics and estimation results (Annex D)

[TAD/CA/APM/WP(2020)2/ANN/FINAL].

This document contains Annex D.

These three documents were declassified by the Working Party on Agricultural Policies

and Markets on 17-18 March 2020.

TAD/CA/APM/WP(2020)2/ANN/FINAL 3

DRIVERS OF FARM PERFORMANCE Unclassified

Table of contents

Annex D. Background Tables ............................................................................................................... 8

1. Australia ............................................................................................................................................. 8

1.1. Australian dairy farms................................................................................................................... 8 1.2. Australian crop farms .................................................................................................................. 12 1.3. Australian crop and livestock farms ........................................................................................... 16 1.4. Australian beef and sheep farms ................................................................................................. 20 1.5. Australian beef farms .................................................................................................................. 24 1.6. Australian sheep farms ................................................................................................................ 28 1.7. Australian wool farms ................................................................................................................. 32

2. Chile .................................................................................................................................................. 36

2.1. Chilean small-scale fruit farms ................................................................................................... 36

3. Czech Republic ................................................................................................................................ 40

3.1. Czech dairy farms ....................................................................................................................... 40

4. Denmark ........................................................................................................................................... 44

4.1. Danish dairy farms ...................................................................................................................... 44 4.2. Danish pig farms ......................................................................................................................... 48

5. Estonia .............................................................................................................................................. 55

5.1. Estonian dairy farms ................................................................................................................... 55

6. France ............................................................................................................................................... 59

6.1. French dairy farms ...................................................................................................................... 59 6.2. French crop farms ....................................................................................................................... 63

7. Hungary ............................................................................................................................................ 67

7.1. Hungarian crop farms ................................................................................................................. 67

8. Ireland .............................................................................................................................................. 71

8.1. Irish dairy farms .......................................................................................................................... 71 8.2. Irish crop farms ........................................................................................................................... 75 8.3. Irish cattle rearing farms ............................................................................................................. 79 8.4. Irish cattle other farms ................................................................................................................ 83 8.5. Irish sheep farms ......................................................................................................................... 87

9. Italy ................................................................................................................................................... 91

9.1. Italian crop farms ........................................................................................................................ 91

10. Korea .............................................................................................................................................. 95

10.1. Korean rice farms ...................................................................................................................... 95

11. Norway ........................................................................................................................................... 99

11.1. Norwegian dairy farms ............................................................................................................. 99

4 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

11.2. Norwegian crop farms............................................................................................................. 103 11.3. Norwegian cattle farms ........................................................................................................... 107

12. Sweden .......................................................................................................................................... 111

12.1. Swedish dairy farms ................................................................................................................ 111 12.2. Swedish crop farms ................................................................................................................. 115

13. United Kingdom .......................................................................................................................... 119

13.1. UK dairy farms ....................................................................................................................... 119 13.2. UK cereal farms ...................................................................................................................... 123 13.3. UK mixed crop and livestock farms ....................................................................................... 127 13.4. UK pig farms .......................................................................................................................... 131 13.5. UK poultry farms .................................................................................................................... 135

Tables

Table A D.1.1. Australian dairy farms: Descriptive statistics ................................................................. 8 Table A D.1.2. Australian dairy farms: Latent class estimates ............................................................... 9 Table A D.1.3. Australian dairy farms: Full production function estimates ......................................... 10 Table A D.1.4. Australian dairy farms: Elasticities for classes ............................................................. 11 Table A D.1.5. Australian dairy farms: Class identification - mean values indices .............................. 11 Table A D.1.6. Australian crop farms: Descriptive statistics ................................................................ 12 Table A D.1.7. Australian crop farms: Latent class estimates .............................................................. 13 Table A D.1.8. Australian crop farms: Full production function estimates .......................................... 14 Table A D.1.9. Australian crop farms: Elasticities for classes .............................................................. 15 Table A D.1.10. Australian crop farms Class identification - mean values indices .............................. 15 Table A D.1.11. Australian crop and livestock farms: Descriptive statistics ........................................ 16 Table A D.1.12. Australian crop and livestock farms: Latent class estimates ...................................... 17 Table A D.1.13. Australian crop and livestock farms: Full production function estimates .................. 18 Table A D.1.14. Australian crop and livestock farms: Elasticities for classes ...................................... 19 Table A D.1.15. Australian crop and livestock farms: Class identification - mean values indices ....... 19 Table A D.1.16. Australian beef and sheep farms: Descriptive statistics .............................................. 20 Table A D.1.17. Australian beef and sheep farms: Latent class estimates ............................................ 21 Table A D.1.18. Australian beef and sheep farms: Full production function estimates ........................ 22 Table A D.1.19. Australian beef and sheep farms: Elasticities for classes ........................................... 23 Table A D.1.20. Australian beef and sheep farms: Class identification - mean values indices ............ 23 Table A D.1.21. Australian beef farms: Descriptive statistics .............................................................. 24 Table A D.1.22. Australian beef farms: Latent class estimates ............................................................. 25 Table A D.1.23. Australian beef farms: Full production function estimates ......................................... 26 Table A D.1.24. Australian beef farms: Elasticities for classes ............................................................ 27 Table A D.1.25. Australian beef farms: Class identification - mean values indices ............................. 27 Table A D.1.26. Australian sheep farms: Descriptive statistics ............................................................ 28 Table A D.1.27. Australian sheep farms: Latent class estimates........................................................... 29 Table A D.1.28. Australian sheep farms: Full production function estimates ...................................... 30 Table A D.1.29. Australian sheep farms: Elasticities for classes .......................................................... 31 Table A D.1.30. Table A B.1.30. Australian sheep farms: Class identification - mean values indices 31 Table A D.1.31. Australian wool farms: Descriptive statistics ............................................................. 32 Table A D.1.32. Australian wool farms: Latent class estimates ............................................................ 33 Table A D.1.33. Australian wool farms: Full production function estimates ........................................ 34

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Table A D.1.34. Australian wool farms: Elasticities for classes ........................................................... 35 Table A D.1.35. Australian wool farms: Class identification - mean values indices ............................ 35 Table A D.2.1. Chilean small-scale fruit farms: Descriptive statistics .................................................. 36 Table A D.2.2. Chilean small-scale fruit farms: Latent Class Estimates .............................................. 37 Table A D.2.3. Chilean small-scale fruit farms: Full Production Function Estimates .......................... 38 Table A D.2.4. Chilean small-scale fruit farms: Elasticities for classes ................................................ 38 Table A D.2.5. Chilean small-scale fruit farms: Class identification - mean values indices ................ 39 Table A D.3.1. Czech dairy farms: Descriptive statistics ...................................................................... 40 Table A D.3.2. Czech dairy farms: Latent class estimates .................................................................... 41 Table A D.3.3. Czech dairy farms: Full production function estimates ................................................ 42 Table A D.3.4. Czech dairy farms: Elasticities for classes .................................................................... 43 Table A D.3.5. Czech dairy farms: Class identification - mean values indices .................................... 43 Table A D.4.1. Danish dairy farms: Descriptive statistics .................................................................... 44 Table A D.4.2. Danish dairy farms: Latent class estimates ................................................................... 45 Table A D.4.3. Danish dairy farms: Full production function estimates ............................................... 46 Table A D.4.4. Danish dairy farms: Elasticities for classes .................................................................. 47 Table A D.4.5. Danish dairy farms: Class identification - mean values indices ................................... 47 Table A D.4.6. Danish pig farms: Descriptive statistics ....................................................................... 48 Table A D.4.7. Danish pig farms, type rearing and fattening: Latent class estimates ........................... 49 Table A D.4.8. Danish pig farms, type specialist fattening: Latent class estimates .............................. 50 Table A D.4.9. Danish pig farms, type rearing and fattening: Full production function estimates ....... 51 Table A D.4.10. Danish pig farms, type specialist fattening: Full production function estimates ........ 52 Table A D.4.11. Danish pig farms, type rearing and fattening: Elasticities for classes ........................ 53 Table A D.4.12. Danish pig farms, type specialist fattening: Elasticities for classes............................ 53 Table A D.4.13. Danish pig farms, type rearing and fattening: Class identification - mean values

indices ............................................................................................................................................ 53 Table A D.4.14. Danish pig farms, type specialist fattening: Class identification - mean values

indices ............................................................................................................................................ 54 Table A D.5.1. Estonian dairy farms: Descriptive statistics .................................................................. 55 Table A D.5.2. Estonian dairy farms: Latent class estimates ................................................................ 56 Table A D.5.3. Estonian dairy farms: Full production function estimates ............................................ 57 Table A D.5.4. Estonian dairy farms: Elasticities for classes ................................................................ 58 Table A D.5.5. Estonian dairy farms: Class identification - mean values indices ................................ 58 Table A D.6.1. French dairy farms: Descriptive statistics ..................................................................... 59 Table A D.6.2. French dairy farms: Latent class estimates ................................................................... 60 Table A D.6.3. French dairy farms: Full production function estimates ............................................... 61 Table A D.6.4. French dairy farms: Elasticities for classes................................................................... 62 Table A D.6.5. French dairy farms: Class identification - mean values indices ................................... 62 Table A D.6.6. French crop farms: Descriptive statistics ...................................................................... 63 Table A D.6.7. French crop farms: Latent class estimates .................................................................... 64 Table A D.6.8. French crop farms: Full production function estimates ................................................ 65 Table A D.6.9. French crop farms: Elasticities for classes .................................................................... 65 Table A D.6.10. French crop farms: Class identification - mean values indices................................... 66 Table A D.7.1. Hungarian crop farms: Descriptive statistics ................................................................ 67 Table A D.7.2. Hungarian crop farms: Latent class estimates .............................................................. 68 Table A D.7.3. Hungarian crop farms: Full production function estimates .......................................... 69 Table A D.7.4. Hungarian crop farms: Elasticities for classes .............................................................. 70 Table A D.7.5. Hungarian crop farms: Class identification - mean values indices ............................... 70 Table A D.8.1. Irish dairy farms: Descriptive statistics ........................................................................ 71 Table A D.8.2. Irish dairy farms: Latent class estimates ....................................................................... 72

6 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.3. Irish dairy farms: Full production function estimates ................................................... 73 Table A D.8.4. Irish dairy farms: Elasticities for classes ...................................................................... 74 Table A D.8.5. Irish dairy farms: Class identification - mean values indices ....................................... 74 Table A D.8.6. Irish crop farms: Descriptive statistics ......................................................................... 75 Table A D.8.7. Irish crop farms: Latent class estimates ........................................................................ 76 Table A D.8.8. Irish crop farms: Full production function estimates .................................................... 77 Table A D.8.9. Irish crop farms: Elasticities for classes ....................................................................... 78 Table A D.8.10. Irish crop farms: Class identification - mean values indices ...................................... 78 Table A.B.8.11. Irish cattle rearing farms: Descriptive statistics .......................................................... 79 Table A D.8.12. Irish cattle rearing farms: Latent class estimates ........................................................ 80 Table A D.8.13. Irish cattle rearing farms: Full production function estimates .................................... 81 Table A D.8.14. Irish cattle rearing farms: Elasticities for classes........................................................ 82 Table A D.8.15. Irish cattle rearing farms: Class identification - mean values indices ........................ 82 Table A.B.8.16. Irish cattle other farms: Descriptive statistics ............................................................. 83 Table A D.8.17. Irish cattle other farms: Latent class estimates ........................................................... 84 Table A D.8.18. Irish cattle other farms: Full production function estimates ....................................... 85 Table A D.8.19. Irish cattle other farms: Elasticities for classes ........................................................... 86 Table A D.8.20. Irish cattle other farms: Class identification - mean values indices............................ 86 Table A.B.8.21. Irish sheep farms: Descriptive statistics ...................................................................... 87 Table A D.8.22. Irish sheep farms: Latent class estimates .................................................................... 88 Table A D.8.23. Irish sheep farms: Full production function estimates ................................................ 89 Table A D.8.24. Irish sheep farms: Elasticities for classes ................................................................... 90 Table A D.8.25. Irish sheep farms: Class identification - mean values indices .................................... 90 Table A D.9.1. Italian crop farms: Descriptive statistics, ...................................................................... 91 Table A D.9.2. Italian crop farms: Latent class estimates ..................................................................... 92 Table A D.9.3. Italian crop farms: Full production function estimates ................................................. 93 Table A D.9.4. Italian crop farms: Elasticities for classes..................................................................... 94 Table A D.9.5. Italian crop farms: Class identification - mean values indices ..................................... 94 Table A D.10.1. Korean rice farms: Descriptive statistics .................................................................... 95 Table A D.10.2. Korean rice farms: Latent class estimates .................................................................. 96 Table A D.10.3. Korean rice farms: Full production function estimates .............................................. 97 Table A D.10.4. Korean rice farms: Elasticities for classes .................................................................. 98 Table A D.10.5. Korean rice farms: Class identification - mean values indices ................................... 98 Table A D.11.1. Norwegian dairy farms: Descriptive statistics ............................................................ 99 Table A D.11.2. Norwegian dairy farms: Latent class estimates ........................................................ 100 Table A D.11.3. Norwegian dairy farms: Full production function estimates .................................... 101 Table A D.11.4. Norwegian dairy farms: Elasticities for classes ........................................................ 102 Table A D.11.5. Norwegian dairy farms: Class identification - mean values indices ......................... 102 Table A D.11.6. 11.2. Norwegian crop farms: Descriptive statistics .................................................. 103 Table A D.11.7. Norwegian crop farms: Latent class estimates ......................................................... 104 Table A D.11.8. Norwegian crop farms: Full production function estimates ..................................... 105 Table A D.11.9. Norwegian crop farms: Elasticities for classes ......................................................... 106 Table A D.11.10. Norwegian crop farms: Class identification - mean values indices ........................ 106 Table A D.11.11. Norwegian cattle farms: Descriptive statistics........................................................ 107 Table A D.11.12. Norwegian cattle farms: Latent class estimates ...................................................... 108 Table A D.11.13. Norwegian cattle farms: Full production function estimates .................................. 109 Table A D.11.14. Norwegian cattle farms: Elasticities for classes ..................................................... 110 Table A D.11.15. Norwegian cattle farms: Class identification - mean values indices ...................... 110 Table A D.12.1. Swedish dairy farms: Descriptive statistics .............................................................. 111 Table A D.12.2. Swedish dairy farms: Latent class estimates ............................................................ 112

TAD/CA/APM/WP(2020)2/ANN/FINAL 7

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.12.3. Swedish dairy farms: Full production function estimates ........................................ 113 Table A D.12.4. Swedish dairy farms: Elasticities for classes ............................................................ 114 Table A D.12.5. Swedish dairy farms: Class identification - mean values indices ............................. 114 Table A D.12.6. Swedish crop farms: Descriptive statistics ............................................................... 115 Table A D.12.7. Swedish crop farms: Latent class estimates .............................................................. 116 Table A D.12.8. Swedish crop farms: Full production function estimates .......................................... 117 Table A D.12.9. Swedish crop farms: Elasticities for classes ............................................................. 117 Table A D.12.10. Swedish crop farms: Class identification - mean values indices ............................ 118 Table A D.13.1. UK dairy farms: Descriptive statistics ...................................................................... 119 Table A D.13.2. UK dairy farms: Latent class estimates .................................................................... 120 Table A D.13.3. UK dairy farms: Full production function estimates ................................................ 121 Table A D.13.4. UK dairy farms: Elasticities for classes .................................................................... 122 Table A D.13.5. UK dairy farms: Class identification - mean values indices ..................................... 122 Table A D.13.6. UK cereal farms: Descriptive statistics ..................................................................... 123 Table A D.13.7. UK cereal farms: Latent class estimates ................................................................... 124 Table A D.13.8. UK cereal farms: Full production function estimates ............................................... 125 Table A D.13.9. UK cereal farms: Elasticities for classes................................................................... 126 Table A D.13.10. UK cereal farms: Class identification - mean values indices ................................. 126 Table A D.13.11. UK mixed crop and livestock farms: Descriptive statistics .................................... 127 Table A D.13.12. UK mixed crop and livestock farms: Latent class estimates .................................. 128 Table A D.13.13. UK mixed crop and livestock farms: Full production function estimates .............. 129 Table A D.13.14. UK mixed crop and livestock farms: Elasticities for classes .................................. 129 Table A D.13.15. UK mixed crop and livestock farms: Class identification - mean values indices ... 130 Table A D.13.16. UK pig farms: Descriptive statistics ....................................................................... 131 Table A D.13.17. UK pig farms: Latent class estimates ..................................................................... 132 Table A D.13.18. UK pig farms: Full production function estimates ................................................. 133 Table A D.13.19. UK pig farms: Elasticities for classes ..................................................................... 134 Table A D.13.20. UK pig farms: Class identification - mean values indices ...................................... 134 Table A D.13.21. UK poultry farms: Descriptive statistics ................................................................. 135 Table A D.13.22. UK poultry farms: Latent class estimates ............................................................... 136 Table A D.13.23. UK poultry farms: Full production function estimates ........................................... 137 Table A D.13.24. UK poultry farms: Elasticities for classes .............................................................. 138 Table A D.13.25. UK poultry farms: Class identification - mean values indices ............................... 138

8 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Annex D. Background Tables

1. Australia

1.1. Australian dairy farms

Table A D.1.1. Australian dairy farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year

Full sample (n = 9161)

1st year (1989, n = 293)

Final year (2018, n = 297)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (AUD) 705 192 [0; 23 718 105]

162 865 [15 154; 5 049 933]

1 502 177 [97 820; 11 670 141]

Total output (AUD) 760 994 [0; 24 397 320]

204 797 [29 864; 8 858 570]

1 587 025 [97 820; 11 910 678]

Dairy cows (number) 471 [0; 10 270]

228 [29; 5 338]

744 [48; 6 696]

Capital depreciation (AUD) 46 662 [0; 870 126]

16 182 [0; 274 308]

93607 [0; 632 526.9]

Fodder cost (AUD) 191 014 [0; 6 756 689]

22 316 [0; 1 256 192]

412 017 [0; 1 115 293]

Materials (AUD) 4 116 [0; 871 835]

1 605 [0; 37 571]

9 800 [0; 195 426]

Hired labour (hour) 6 373 [0; 4 084 846]

1 128 [0; 49.88]

55 442 [0; ]

Family labour (hour) 105 039 [0; 4 492 996]

37 195 [1 664; 988 407]

176 395 [0; ]

Land (ha) 384 [0; 18 194.6]

291 [0; 18 194.6]

472 [71; 4 108]

Stocking density (LU per ha) 1.51 [0; 13.45]

1.22 [0; 6.09]

1.80 [0.13; 7.32]

Chemicals cost (AUD) 48 079 [0; 1 888 131]

8 509 [0; 152 867]

92 540 [0; 1 115 293]

Organic (0-1 probability) 0 [0; 0]

0 [0; 0]

0 [0; 0]

Total assets (AUD) 4 034 172 [0; 0.129583D+09]

1 414 148 [182 878; 54 288 634]

8 440 075 [1 385 600; 61 426 847]

Age (years) 53.4 [18; 99]

48.4 [18; 81]

58.2 [18; 93]

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Table A D.1.2. Australian dairy farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

Constant 8.75318*** 8.48228*** 8.30690***

Land 0.21115*** -0.12413* -0.03402**

Dairy cows -0.22601*** 0.34888*** 0.93964***

Capital -0.15855*** 0.12750 -0.13550***

Chemicals -0.06397*** -0.19347*** -0.03751***

Labour 0.03902 0.07812 -0.23464***

Land*Land -0.01702*** 0.02643*** 0.00672***

Dairy cows*Dairy cows 0.04453*** 0.02353*** -0.02115***

Capital*Capital 0.01164*** -0.00455 0.01335***

Chemicals*Chemicals 0.00681*** 0.01979*** 0.00748***

Labour*Labour 0.02513*** -0.00569 0.01506***

Time 0.21385*** -0.14848** -0.03029***

Time*Time -0.00012 -0.00111** -0.00020**

Time*Land -0.00281 0.00439 -0.00338***

Time*Dairy cows 0.01664*** -0.03380*** 0.00225

Time*Capital 0.00130 0.02733*** 0.00408***

Time*Chemicals -0.00080 0.00491*** -0.00133***

Time*Labour -0.02422*** 0.00296 0.00256***

Sigma 0.29279*** 0.40796*** 0.23729***

Class Membership Vector

Constant -0.66544*** -1.31929*** ---

Index 1 - Structure 0.20388** 0.26845** ---

Index 2 - Environmental sustainability -0.31042*** 0.21152* ---

Index 3 - Innovation-cooperation-commercialisation 0.11105 -0.07195 ---

Index 4 - Technology -0.00649 -0.15537 ---

Index 5 - Diversity 0.02651 0.10634* ---

Index 6 - Individual 0.16370** 0.21285** ---

Index 7 - Location 0.00577 0.06771 ---

Index 8 - Household 0.03306 0.04202 ---

Index 9 - Financial 0.71229*** 0.24568 ---

Log-Likelihood Function -1740.11759

Inf.Cr.AIC / AIC/N 3634.2 / 0.397

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

10 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.1.3. Australian dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land 0.08707 -0.47269 0.00750

Dairy cows -0.46482** 0.39691 0.05756

Capital 0.27073** 0.33716 -0.05155

Chemicals 0.01900 -0.41114*** -0.01558

Labour 0.06160 -3.99269** -0.05411

Land*Land 0.00706** 0.03378*** 0.00658***

Dairy cows*Dairy cows 0.05935*** 0.07003*** 0.06945***

Capital*Capital 0.00344* 0.00442 0.00674***

Chemicals*Chemicals 0.00554*** 0.01147*** 0.00551***

Labour*Labour 0.01951*** 0.22107** 0.00716

Land*Dairy cows 0.00274 -0.01474 -0.01217

Land*Capital -0.01160 0.04814* 0.00149

Land*Chemicals 0.00143 0.00762 -0.13958D-04

Land*Labour -0.00038 -0.01420 0.00237

Dairy cows*Capital 0.00994 0.02232 -0.00842

Dairy cows*Chemicals 0.00026 -0.03854*** -0.00021

Dairy cows*Labour -0.00209 -0.06913 -0.01378

Capital*Chemicals -0.00938*** 0.00306 -0.00070

Capital*Labour -0.02026 -0.06556 0.00282

Chemicals*Labour 0.00041 0.03966** -0.00128

Time 0.07199*** -0.14002 -0.03463**

Time*Time -0.00104*** -0.00144*** -0.00039***

Time*Land -0.93002D-04 -0.00823* 0.00024

Time*Dairy cows -0.00425* 0.00724 0.00382**

Time*Capital 0.00606*** 0.00694 0.00164**

Time*Chemicals 0.00063** 0.00032 -0.00090***

Time*Labour -0.00537*** 0.01116 0.00316**

Number of observations / average group size 1 800 / 2.96 426 / 1.90 6 935 / 2.94

R-squared / R-bar squared 0.9793 / 0.9685 0.9832 / 0.9621 0.9829 / 0.9736

Rho squared (residual variation) 0.8572 0.9764 0.8532

R-squared (within groups var) 0.6563 0.5087 0.6196

Hausman Test 368.71*** 159.89*** 522.48***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 11

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Table A D.1.4. Australian dairy farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.02681 0.19783*** 0.00881

Dairy cows 0.20584*** 0.31215*** 0.71633***

Capital 0.06643* 0.27080*** 0.17268***

Chemicals 0.06142*** 0.18858*** 0.09126***

Labour 0.67900*** -0.02149 0.12307***

Returns-to-scale 1.03950*** 0.94787*** 1.11216***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.5. Australian dairy farms: Class identification - mean values indices

Mean values1, 1989 to 2018

Class 1: Most productive (19.6%)

Class 2: Least productive (4.7%)

Class 3: Medium productive (75.7%)

Index 1 - Structure -0.5245 0.5891 0.1000

Index 2 – Environmental sustainability -0.8024 0.4844 0.1785

Index 3 – Innovation-cooperation-commercialisation 0.5217 -0.3108 -0.1163

Index 4 - Technology -0.1307 -0.0925 0.0396

Index 5 - Diversity -0.0264 0.4995 -0.0238

Index 6 - Individual 0.4667 0.0567 -0.1246

Index 7 - Location -0.1099 0.2352 0.0141

Index 8 - Household 0.2501 0.0144 -0.0658

Index 9 - Financial 0.1063 -0.0276 -0.0259

Note: 1. At class means, scaled values.

Source: Estimations.

12 TAD/CA/APM/WP(2020)2/ANN/FINAL

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1.2. Australian crop farms

Table A D.1.6. Australian crop farms: Descriptive statistics

Sample 1989 to 2018

Note: 1. Values are per year.

Full sample (n = 8921)

1st year (1989, n = 117)

Final year (2018, n = 346)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (AUD) 994 676 [0; 19 513 669]

253 659 [0; 1 740 849]

1 763 441 [0; 16 287 981]

Total output (AUD) 780 183 [50; 21 814 625]

337 703 [10 734; 2 271 732]

2 076 965 [34 580; 17 040 303]

Land (ha) 3 365 [0; 308 048]

1 606 [45; 11 873]

4 056 [81.6; 32 260]

Capital depreciation (AUD) 91 681 [0; 2 241 422]

34 169 [0; 260 522]

183 389 [4 795; 2 241 422]

Chemicals cost (AUD) 207 077 [0; 4 357 020]

27 009 [0; 329 648]

451 808 [0; 4 357 020]

Hired labour (hour) 7 937 [43; 193 892]

3 017 [43; 10 297]

14 252 [2 061; 193 893]

Family labour (hour) 91 106 [798; 41 710 095]

56 409 [798; 3 723 375]

8 1781 [11 826; 41 710 095]

Materials (AUD) 75 838 [0; 3 318 176]

24 693 [0; 211 152]

157 887 [635; 1 830 766]

Organic (0-1 probability) 0 [0; 1]

0 [0; 0]

0.00578 [0; 1]

Total assets (AUD) 5 430 817 [79 068; .124D+09]

1 245 898 [143 077; 9 678 509]

13 031 211 [704 200; 0.106D+09]

Age (years) 52.7 [18; 96]

50.8 [28; 84]

56.9 [18; 86]

TAD/CA/APM/WP(2020)2/ANN/FINAL 13

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.7. Australian crop farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2

Constant 10.1654*** 5.70352***

Land 0.47789*** 0.47556***

Capital -0.10451*** -0.14441***

Chemicals -0.29330*** -0.04558*

Labour -0.28353*** -0.35911*

Seed -0.02022*** -0.01994

Materials -0.06356*** 0.45673**

Land*Land -0.02680*** -0.00992**

Capital*Capital 0.00905*** 0.00809*

Chemicals*Chemicals 0.02779*** 0.00597***

Labour*Labour 0.01804*** 0.02207**

Seed*Seed 0.00386*** 0.00602**

Materials*Materials 0.01807*** 0.00438

Time 0.03345*** -0.06257*

Time*Time 0.00057*** 0.00139***

Time*Land 0.00061 -0.01102***

Time*Capital 0.00044 0.00786**

Time*Chemicals -0.00133*** 0.00053

Time*Labour -0.00308*** -0.00316

Time*Seed -0.00046 0.00436

Time*Materials -0.00043*** -0.00156**

Sigma 0.30431*** 0.61546***

Class Membership Vector

Constant 2.13015*** ---

Index 1 - Structure 0.06753 ---

Index 2 - Environmental sustainability -0.87976*** ---

Index 3 - Innovation-cooperation-commercialisation 0.65398*** ---

Index 4 - Technology -0.29405*** ---

Index 5 - Diversity -0.70452*** ---

Index 6 - Individual 0.05796 ---

Index 7 - Location -0.08244* ---

Index 8 - Household 0.05357 ---

Index 9 - Financial 0.02517 ---

Log-Likelihood Function -3 908.65280

Inf.Cr.AIC / AIC/N 7 925.3 / 0.888

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

14 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.8. Australian crop farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2

Land 0.11903 0.57898

Capital -0.03178 -0.57473

Chemicals -0.08323 -0.35261

Labour -0.17083 -2.84180***

Seed 0.01647 -0.04637

Materials -0.42543* -0.51106

Land*Land -0.02823*** -0.00798

Capital*Capital 0.00326*** 0.01365

Chemicals*Chemicals 0.00481*** -0.01430*

Labour*Labour 0.01500*** 0.13123**

Seed*Seed 0.00045 -0.00251

Materials*Materials 0.03196* 0.21207**

Land*Capital 0.00210 0.04497

Land*Chemicals -0.01341*** 0.02759**

Land*Labour 0.01108 -0.13883

Land*Seed -0.00395** -0.02747**

Land*Materials 0.02419 0.00838

Capital*Chemicals -0.00164 0.35873D-04

Capital*Labour 0.00036 0.22529

Capital*Seed 0.00077 0.02306*

Capital*Materials -0.00135 -0.21455*

Chemicals*Labour -0.01971*** 0.05040**

Chemicals*Seed -0.00032 0.00053

Chemicals*Materials 0.02658*** -0.01715

Labour*Seed -0.00108 -0.00034

Labour*Materials -0.00040 -0.12855

Seed*Materials 0.00126 0.00385

Time 0.04667** -0.06208

Time*Time 0.00038*** 0.00016

Time*Land 0.00420** 0.01271

Time*Capital 0.00078 0.00681

Time*Chemicals 0.00055 -0.00125

Time*Labour 0.00487** 0.01600

Time*Seed 0.91431D-04 -0.00197

Time*Materials -0.01192*** -0.02140

Number of observations / average group size 7814 / 2.71 1107 / 1.38

R-squared / R-bar squared 0.9658 / 0.9554 0.9569 / 0.8228

Rho squared (residual variation) 0.5279 0.7592

R-squared (within groups var) 0.4927 0.2691

Hausman Test 113.64*** 66.9***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 15

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.9. Australian crop farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2

Land 0.08455*** 0.17274***

Capital 0.09877*** 0.13761***

Chemicals 0.32427*** 0.07372***

Labour 0.11449*** 0.18212***

Seed 0.02568*** 0.01775***

Materials 0.30430*** 0.50638***

Returns-to-scale 0.95205*** 1.09032***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.10. Australian crop farms Class identification - mean values indices

Mean values1, 1989 to 2018

Class 1: Most productive (87.6%)

Class 2: Least productive (12.4%)

Index 1 – Structure -0.1625 1.1468

Index 2 - Environmental sustainability -0.0660 0.4660

Index 3 – Innovation-cooperation-commercialisation 0.0797 -0.5628

Index 4 - Technology 0.1022 -0.7212

Index 5 - Diversity -0.2664 1.8805

Index 6 - Individual 0.0363 -0.2560

Index 7 - Location -0.0532 0.3753

Index 8 - Household 0.0382 -0.2696

Index 9 - Financial 0.2201 -1.5538

Note: 1. At class means, scaled values.

Source: Estimations.

16 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

1.3. Australian crop and livestock farms

Table A D.1.11. Australian crop and livestock farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 9715)

1st year (1989, n = 303)

Final year (2018, n = 335)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (AUD) 295 812 [0; 7 161 487]

161 529 [0; 2 400 325]

637 442 [0; 6 903 153]

Livestock output (AUD) 188 321 [0; 14 877 500]

58 327 [0; 2 270 795]

440 758 [0; 7 320 071]

Total output (AUD) 626 233 [0; 20 945 442]

340 633 [0; 11 102 106]

1 408 587 [25 520; 14 542 846]

Land (ha) 3 795 [2; 774 725]

2 848 [161.9; 115 233]

7 177 [138.1; 774 725]

Livestock Units (number) 6 817 [3.6; 1 391 707]

4 951 [0; 913 084.4]

11 842 [4.947; 7 705 246.7]

Capital depreciation (AUD) 55 611 [0; 1 023 988]

36 512 [0; 890 143]

107 163 [7 324; 1 019 751.9]

Hired labour (hour) 6 599 [86; 181 943]

420 [67.9; 2 032 079]

30 447 [3 348.9; 297 099.4]

Family labour (hour) 87 846 [0; 2 603 870]

53 019 [0; 2 048 111]

155 579 [17 113; 1 800 110.6]

Materials (AUID) 332 399 [2 401; 18 150 569]

166 374 [7481; 6 386 823]

723 538 [0; 9 324 447]

Stocking density (LU per ha) 1.80 [0; 219]

1.74 [0; 7.92]

1.65 [0; 9.95]

Organic (0-1 probability) 0.000721 [0; 1]

0 [0; 0]

0.008955 [0; 1]

Total assets (AUD) 4 405 164 [35 554; .115D+09]

1 605 898 [164 824; 51 995 485]

1 056 0001 [782 256; 64 771 908]

Age (years) 53.5 [18; 92]

50.4 [23; 81]

57.8 [18; 89]

TAD/CA/APM/WP(2020)2/ANN/FINAL 17

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.12. Australian crop and livestock farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

Constant 0.53247 2.23096 1.05320

Land 0.31829*** 0.82674*** 0.59032***

Capital -0.08570*** -0.02705 -0.25014**

Labour -0.08046* -0.53297 0.66513

Livestock -0.07667*** -0.15645*** -0.21077***

Materials 1.04206*** 0.93460** 0.17467

Land*Land -0.01903*** -0.04371*** -0.04596***

Capital*Capital 0.00749*** 0.00535 0.01488*

Labour*Labour 0.00505** 0.04096 -0.01959

Livestock*Livestock 0.00686*** 0.00629** 0.01205***

Materials*Materials -0.00950*** -0.02117 0.03054*

Time -0.00601 -0.10735 0.03208

Time*Time 0.00039*** -0.00039 0.00094*

Time*Land -0.00011 0.00505 -0.00466

Time*Capital 0.00189*** -0.00877 0.00948*

Time*Labour 0.00415*** -0.00299 -0.00619

Time*Livestock -0.00068*** 0.62802D-04 0.00630***

Time*Materials -0.00489*** 0.01731** -0.01166*

Sigma 0.26813*** 0.60077*** 0.54264***

Class Membership Vector

Constant 3.11557*** 0.53468 ---

Index 1 - Structure 1.86829*** 1.29534*** ---

Index 2 - Environmental sustainability -1.90611*** -0.32702 ---

Index 3 - Innovation-cooperation-commercialisation -0.89360 11.1559*** ---

Index 4 - Technology -1.56910*** -0.40484 ---

Index 5 - Diversity -0.92936*** -0.31450*** ---

Index 6 - Individual -0.21278* 0.41090** ---

Index 7 - Location 0.23375*** 0.29159** ---

Index 8 - Household 0.03013 -0.23823** ---

Index 9 - Financial 0.27045 0.49549* ---

Log-Likelihood Function -3070.91441

Inf.Cr.AIC / AIC/N 6295.8 / 0.648

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

18 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.13. Australian crop and livestock farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land 0.10412 -2.90352*** 3.30397*

Capital -0.01612 0.39113 -1.42855

Labour -0.25398 0.14477 -1.75871

Livestock 0.00084 0.16391 -0.19490

Materials 1.30147*** 2.47218** 1.75715

Land*Land -0.02245*** 0.10754** 0.01854

Capital*Capital 0.00449*** 0.02587 0.02581

Labour*Labour 0.00455 -0.03388 0.04118

Livestock*Livestock 0.00199*** 0.00199 0.00655**

Materials*Materials -0.02748** -0.06346 -0.06465

Land*Capital 0.00369 0.06187 -0.03311

Land*Labour 0.01839 0.09342 -0.11551

Land*Livestock -0.00139 0.00848 0.01491*

Land*Materials 0.00524 -0.04201 -0.22689**

Capital*Labour 0.00073 -0.05695 0.03425

Capital*Livestock 0.21727D-04 -0.01409 -0.01507

Capital*Materials -0.00578 -0.03953 0.08828

Labour’Livestock -0.00256 -0.04234*** 0.01739

Labour*Materials 0.00966 0.05878 0.13993

Livestock*Materials 0.00138 0.02887** -0.00031

Time 0.00386 -0.07078 0.16344

Time*Time 0.00036*** 0.00103 0.00030

Time*Land 0.00090 0.00889 0.05218***

Time*Capital 0.00024 0.00179 0.00256

Time*Labour 0.00069 0.01432 -0.02329

Time*Livestock 0.00032** 0.00197 0.00039

Time*Materials -0.00205 -0.01899* -0.02757*

Number of observations / average group size 7480 / 2.42 1176 / 1.40 1043 / 1.31

R-squared / R-bar squared 0.9829 / 0.9708 0.9871 / 0.9511 0.9764 / 0.8889

Rho squared (residual variation) 0.7048 0.8102 0.7754

R-squared (within groups var) 0.6016 0.4714 0.3463

Hausman Test 140.10*** 87.93*** 83.02***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 19

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.14. Australian crop and livestock farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.03176*** 0.26968*** -0.08589***

Capital 0.09201*** -0.02197 0.18002***

Labour 0.08055*** 0.33499*** 0.15484**

Livestock 0.07566*** -0.02225 0.14558***

Materials 0.75303*** 0.63071*** 0.70630***

Returns-to-scale 1.03301*** 1.19116*** 1.10086***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.15. Australian crop and livestock farms: Class identification - mean values

indices

Mean values1, 1989 to 2018

Class 1: Most productive (86.3% of farms)

Class 2: Medium productive (5.3% of

farms)

Class 3: Least productive (8.4% of

farms)

Index 1 - Structure 0.2963 0.2273 -3.2005

Index 2 - Environmental sustainability -0.2278 0.2476 2.1910

Index 3 - Innovation-cooperation-commercialisation -0.0496 0.8926 -0.0572

Index 4 - Technology -0.3938 1.2839 3.2429

Index 5 - Diversity -0.1901 0.4839 1.6521

Index 6 - Individual -0.3495 1.7108 2.5140

Index 7 - Location -0.1555 3.6421 -0.7166

Index 8 - Household 0.0174 -4.3174 2.5715

Index 9 - Financial 0.1745 1.8189 -2.9584

Note: 1. At class means, scaled values.

Source: Estimations.

20 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

1.4. Australian beef and sheep farms

Table A D.1.16. Australian beef and sheep farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 5192)

1st year (1989, n = 136)

Final year (2018, n = 154)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (AUD) 310 476

[176; 6 106 171] 147 230 [3 852; 1 554 391]

843 105 [20 546; 61 06171]

Total output (AUD) 498 274 [6258; 7 644 909]

316 241 [32 533; 4 935 833]

1 230 303 [40 263; 7 302 086]

Land (ha) 14 852 [40; 993 271]

7 011 [40; 256 544.7]

5 687 [89; 80 938.9]

Livestock Units (number) 35 921 [96.74; 2 402 388]

21 047 [2.88; 770 106]

13 651 [267.2; 242 965.6]

Capital depreciation (AUD) 32 356 [0; 481 638]

21 537 [0; 352 554]

60 049 [7 165; 224 783.1]

Hired labour (hour) 9 813 [494; 133 294]

5 926 [494.1; 82 477.4]

28 821 [3 066.8; 129 779.7]

Family labour (hour) 91 387 [1 756; 1 373 716]

51 102 [4 260.9; 788 931.4]

154 685 [26 445.2; 1 119 090.3]

Materials (AUD) 226 734 [8 845; 4 755 199]

112 940 [10 029; 1 330 683]

511 146 [32 105; 3 480 811]

Stocking density (LU per ha) 2.42 [0; 13.2]

3.00 [0.07; 10.67]

2.40 [0.01; 7.85]

Organic (0-1 probability) 0.000578 [0; 1]

0 [0; 0]

0.019481 [0; 1]

Total assets (AUD) 4 654 805 [117 084; 82 377 118]

2 090 796 [209 565; 9 857 524]

11 432 318 [833 128; 78 522 104]

Age (years) 54.9 [18; 94]

52.7 [28; 82]

58.6 [19; 91]

TAD/CA/APM/WP(2020)2/ANN/FINAL 21

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.17. Australian beef and sheep farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

Constant 22.7340** -6.41916 4.10353**

Land 0.59857* 0.50585*** 0.12811**

Capital -0.57634** -0.49119*** -0.09834***

Labour -2.00237 2.35755*** 1.27950***

Livestock -0.88592* -0.07803 -0.90252***

Fodder -0.13904** 0.00955 -0.02758***

Land*Land -0.04234** -0.05323*** -0.01167***

Capital*Capital 0.05379*** 0.04711*** 0.01157***

Labour*Labour 0.10617 -0.11262*** -0.04928***

Livestock*Livestock 0.04614* 0.03948*** 0.06591***

Fodder*Fodder 0.01438** 0.00274 0.00465***

Time 0.25916 0.03278 0.01274

Time*Time 0.00156 -0.00051 0.00152***

Time*Land -0.01132** 0.01546*** 0.00143

Time*Capital -0.00465 -0.00726 0.00194

Time*Labour -0.00244 0.02201** -0.00272

Time*Livestock -0.01180 -0.02215*** -0.00388***

Time*Fodder 0.00196 -0.00155* -0.00066*

Sigma 1.18339*** 0.44715*** 0.49684***

Class Membership Vector

Constant -2.37530*** -1.43396*** ---

Index 1 - Structure 0.71542*** 0.35632*** ---

Index 2 - Environmental sustainability 1.64801*** -0.79895*** ---

Index 3 - Innovation-cooperation-commercialisation 2.73258*** 0.23339 ---

Index 4 - Technology -0.68873*** 0.41423** ---

Index 5 - Diversity 0.07897 0.47170*** ---

Index 6 - Individual -0.04904 0.40129*** ---

Index 7 - Location 0.00925 -0.27949*** ---

Index 8 - Household -0.05370 0.18510** ---

Index 9 - Financial 0.12335** -0.00684 ---

Log-Likelihood Function -4978.49780

Inf.Cr.AIC / AIC/N 10111.0 / 1.947

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

22 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.18. Australian beef and sheep farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land -1.94064 0.09639 0.03031

Capital -0.50492 0.82547 0.18926

Labour 9.43694*** 0.19931 -0.69622

Livestock -0.80834 -0.26821 -0.05572

Fodder 0.31112 0.11735 0.04295

Land*Land -0.00789 0.00099 -0.03120***

Capital*Capital 0.00573 0.01727** 0.00574**

Labour*Labour -0.66615*** 0.00938 0.06093*

Livestock*Livestock 0.03966 0.06477* 0.02490***

Fodder*Fodder 0.01218** 0.00161 0.00169**

Land*Capital 0.09312 0.04373 0.00328

Land*Labour 0.12669 0.04170 0.03956**

Land*Livestock 0.02480 -0.09062 0.00585

Land*Fodder -0.01144 0.00741 0.00147

Capital*Labour 0.18255 -0.08522 -0.02915

Capital*Livestock -0.22678* -0.03679 0.00489

Capital*Fodder 0.00760 0.00438 -0.00227

Labour*Livestock 0.17868 0.01228 -0.03451

Labour*Fodder -0.03299 -0.00686 -0.00378

Livestock*Fodder -0.00099 -0.01079* -0.00011

Time -0.78295** 0.04928 0.00442

Time*Time 0.00047 0.00081 0.00119***

Time*Land -0.02883** 0.00911 -0.00197

Time*Capital 0.05455*** 0.00233 0.00322*

Time*Labour 0.03939 0.01060 -0.00180

Time*Livestock 0.00266 -0.01888** -0.00151

Time*Fodder 0.47661D-04 -0.00059 -0.12323D-04

Number of observations / average group size 440 / 1.43 900 / 2.05 1530 / 2.52

R-squared / R-bar squared 0.9623 / 0.8422 0.9847 / 0.9683 0.9585 / 0.9303

Rho squared (residual variation) 0.8879 0.9652 0.7943

R-squared (within groups var) 0.3358 0.3553 0.2447

Hausman Test 60.35*** 98.17*** 258.20***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 23

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.19. Australian beef and sheep farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land -0.16447*** 0.01699 -0.04422***

Capital 0.42520*** 0.35182*** 0.15043***

Labour 0.27290** 0.13968** 0.14927***

Livestock 0.09844 0.58019*** 0.72647***

Fodder 0.05827** 0.02459** 0.02868***

Returns-to-scale 0.69034*** 1.11328*** 1.01063***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.20. Australian beef and sheep farms: Class identification - mean values indices

Mean values1, 1989 to 2018

Class 1: Least productive (8.5%)

Class 2: Most productive (17.3%)

Class 3: Medium productive (74.2%)

Index 1 - Structure 0.3133 0.2333 -0.0903

Index 2 - Environmental sustainability 0.4156 -1.1065 0.2111

Index 3 – Innovation-cooperation-commercialisation 0.8566 0.0572 -0.1112

Index 4 - Technology -0.1165 0.5623 -0.1181

Index 5 - Diversity 0.0203 0.5716 -0.1359

Index 6 - Individual -0.1530 0.6820 -0.1419

Index 7 - Location 0.2986 -0.8074 0.1545

Index 8 - Household -0.1328 0.6180 -0.1292

Index 9 - Financial 0.3054 -0.0812 -0.0159

Note: 1. At class means, scaled values.

Source: Estimations.

24 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

1.5. Australian beef farms

Table A D.1.21. Australian beef farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 12 685)

1st year (1989, n = 257)

Final year (2018, n = 515)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (AUD) 921 404 [380; 98 000 000]

544 996 [5 971; 51 663 950]

1 736 698 [1 155; 83 453 420]

Total output (AUD) 1 207 728 [652; 0.174D+09]

595 387 [10 984; 52 524 078]

2 308 457 [3 655; 90 111 094]

Land (ha) 108 515 [0; 3 256 600]

100 242 [41; 2 699 504]

122 761 [0; 2 689 600]

Livestock Units (number) 70 896 [0; 1 946 515]

61 420 [653; 490 831]

73 376 [0; 1 607 611.6]

Capital depreciation (AUD) 53 341 [0; 1 755 133]

36 690 [0; 821 181]

85 027 [1 719.8; 1 755 132.9]

Hired labour (hour) 6 432 [0; 521 570]

3 360 [55; 41 918]

39 426 [1 780.5; 521 569.6]

Family labour (hour) 121 136 [139 402; 2 243 170]

57 291 [1 038; 789 445]

169 562 [7 657.5; 2 243 170.4]

Materials (AUD) 448 474 [2 068; 45 761 413]

212 377 [7 678; 15 333 160]

794 852 [7 342; 28 812 677]

Stocking density (LU per ha) 0.65 [0; 97.76]

0.61 [0.004; 16]

0.60 [0; 31.35]

Organic (0-1 probability) 0.002917 [0; 1]

0 [0; 0]

0.036893 [0; 1]

Total assets (AUD) 8 842 919 [91 533; .248D+09]

2 583 581 [211 093; 18 472 215]

17 307 435 [113 350; .222D+09]

Age (years) 54.8 [18; 97]

52.4 [29; 86]

57.4 [18; 93]

TAD/CA/APM/WP(2020)2/ANN/FINAL 25

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.22. Australian beef farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

constant 7.74747*** 11.0951*** 8.31768***

Land 0.37909*** 0.55919*** 0.40889***

Capital 0.59878*** -0.10446* -0.02849

Labour -0.17231*** -0.62888*** 0.23708

Livestock -0.80210*** -0.26063*** -1.06023***

Fodder -0.02524*** -0.10490*** -0.17783***

Land*Land -0.02265*** -0.02695*** -0.03778***

Capital*Capital -0.01853*** 0.01387*** -0.00062

Labour*Labour 0.01546*** 0.05795*** -0.00088

Livestock*Livestock 0.05513*** 0.01056*** 0.08655***

Fodder*Fodder 0.00302*** 0.00868*** 0.01953***

Time -0.02152 0.00432 0.09135*

Time*Time 0.00085*** 0.00166*** 0.00116***

Time*Land -0.00264*** -0.00216 0.00076

Time*Capital -0.00260** 0.00832*** -0.00146

Time*Labour 0.00149 -0.00853** -0.00956*

Time*Livestock 0.00173** -0.00057 -0.00316

Time*Fodder -0.00011 0.00026 -0.00056

Sigma 0.41749*** 0.97844*** 0.72292***

Class Membership Vector

Constant 1.56043*** 0.77145*** ---

Index 1 - Structure 0.56487*** 1.12839*** ---

Index 2 - Environmental sustainability -1.13632*** -1.86525*** ---

Index 3 - Innovation-cooperation-commercialisation -0.12745* 0.18963*** ---

Index 4 - Technology 0.79517*** 0.67305*** ---

Index 5 - Diversity 0.35866*** 0.71627*** ---

Index 6 - Individual 0.18813*** -0.23899*** ---

Index 7 - Location 0.13410*** 0.04344 ---

Index 8 - Household 0.20421*** 0.26399*** ---

Index 9 - Financial -0.03087 0.05827 ---

Log-Likelihood Function -13743.38382

Inf.Cr.AIC / AIC/N 27640.8 / 2.179

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

26 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.23. Australian beef farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land 0.09296 -0.80292*** 0.98265

Capital -0.08788 0.58383** -0.20458

Labour -0.14576 -0.67474 0.17159

Livestock -0.41065*** -0.10132 -0.99015***

Fodder 0.00365 0.11241* 0.05097

Land*Land -0.01066** -0.01765** -0.06889***

Capital*Capital -0.00679 0.00674* 0.00617

Labour*Labour 0.01333*** 0.06065 -0.01205

Livestock*Livestock 0.02634*** 0.00204 0.01941***

Fodder*Fodder 0.00409*** 0.00396*** 0.01129***

Land*Capital -0.00178 0.01407 -0.00304

Land*Labour 0.00766 0.08084*** 0.04311

Land*Livestock 0.00819** 0.00852 -0.00108

Land*Fodder -0.00122 0.00221 -0.00086

Capital*Labour 0.01968 -0.08291*** -0.01988

Capital*Livestock 0.01565 0.01118 0.02446

Capital*Fodder -0.00352* -0.01172** 0.00588

Labour*Livestock -0.02186* -0.01340 0.03659

Labour*Fodder -0.00190 -0.00559 -0.02300

Livestock*Fodder 0.00263 0.00064 0.00477

Time 0.00716 -0.15503*** 0.14359

Time*Time 0.00076*** 0.00011 -0.00011

Time*Land -0.00039 -0.00571*** -0.00042

Time*Capital -0.00405** 0.01597*** 0.00545

Time*Labour 0.00228 0.00230 -0.02773***

Time*Livestock 0.00083 0.00120 0.00918

Time*Fodder -0.00038* 0.00113* -0.00036

Number of observations / average group size 8593 / 2.75 2777 / 2.47 1315 / 1.53

R-squared / R-bar squared 0.9665 / 0.9471 0.9469 / 0.9096 0.9667 / 0.8983

Rho squared (residual variation) 0.8215 0.8357 0.9315

R-squared (within groups var) 0.2993 0.2892 0.1911

Hausman Test 625.84*** 146.20*** 121.37***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 27

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.24. Australian beef farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land -0.03297*** -0.02943* -0.19534***

Capital 0.18793*** 0.30535*** -0.05662**

Labour 0.18843*** 0.64606*** 0.10915**

Livestock 0.67937*** 0.02597 1.06659***

Fodder 0.01956*** 0.05966*** 0.09202***

Returns-to-scale 1.04232*** 1.00760*** 1.01580***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.25. Australian beef farms: Class identification - mean values indices

Mean values1, 1989 to 2018

Class 1: Medium productive (67.7%)

Class 2: Most productive (21.9%)

Class 3: Least productive (10.4%)

Index 1 - Structure -0.3679 1.3549 -0.4572

Index 2 - Environmental sustainability 0.0637 -0.2764 0.1677

Index 3 – Innovation-cooperation-commercialisation -0.3849 0.9361 0.5383

Index 4 - Technology 0.1474 0.2921 -1.5799

Index 5 - Diversity 0.0793 0.2390 -1.0232

Index 6 - Individual 0.3620 -1.1545 0.0727

Index 7 - Location 0.1907 -0.6162 0.0548

Index 8 - Household 0.3215 -0.9680 -0.0571

Index 9 - Financial -0.2418 0.8142 -0.1390

Note: 1. At class means, scaled values.

Source: Estimations.

28 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

1.6. Australian sheep farms

Table A D.1.26. Australian sheep farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 4011)

1st year (1989, n = 110)

Final year (2018, n = 232)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (AUD) 253 468 [40 000; 8 624 325]

131 617 [40 707; 679 487]

431 368 [40 000; 3 050 500]

Total output (AUD) 591 285 [43 675; 13 356 960]

480 249 [0; 223 459]

849 059 [52 600; 6 657 558]

Land (ha) 18 752 [0.4; 956 450]

25 247 [4 071; 679 487]

12 651 [93; 509 320]

Livestock Units (number) 7 715 [0; 96 498]

10 135 [606; 67 443]

6 208 [474; 48 324]

Capital depreciation (AUD) 39 348 [0; 605 781]

30 042 [17 770; 581 833]

43 468 [5 057; 218 863]

Hired labour (hour) 26 045 [1 230; 510 235]

36 682 [7 548; 247 128]

38 347 [6 190; 222 060]

Family labour (hour) 101 537 [3 980; 1 650 304]

49 681 [10 222; 334 705]

124 031 [20 020; 718 231]

Materials (AUD) 269 158 [11 133; 5 746 246]

172 426 [31 668; 758 373]

335 612 [36 072; 1 729 391]

Stocking density (LU per ha) 4.00 [0; 21.85]

3.67 [0.04; 18.20]

3.54 [0.04; 15.55]

Organic (0-1 probability) 0.002493 [0; 1]

0 [0; 0]

0.017241 [0; 1]

Total assets (AUD) 4 757 376 [115 350; 75 745 652]

2 790 358 [347 797; 14 942 217]

7 651 745 [337 236; 53 364 952]

Age (years) 54.2 [18; 93]

49.7 [23; 81]

59.0 [18; 93]

TAD/CA/APM/WP(2020)2/ANN/FINAL 29

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.27. Australian sheep farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

Constant 19.3428*** 30.4360*** 22.9283***

Land -0.00931 -0.13843 -0.72624***

Capital -0.02077 0.17926 0.27892

Labour 0.81825 -4.39430*** -2.77262***

Livestock -0.09597 -0.30760 -0.48017***

Materials -2.75660*** 0.54170 0.97447

Land*Land -0.00240 0.00956 0.04629***

Capital*Capital 0.00239 0.01247 -0.02219**

Labour*Labour -0.03173 0.18597*** 0.13673***

Livestock*Livestock -0.00815** 0.00883 0.01976***

Materials*Materials 0.15297*** -0.00398 -0.03217

Time -0.02664 -0.12887 -0.18160***

Time*Time 0.00062*** 0.00124 0.00017

Time*Land 0.00050 -0.00380 0.00652**

Time*Capital 0.00150 -0.02239*** 0.01465***

Time*Labour 0.00195 0.03401** -0.02462**

Time*Livestock 0.00760*** 0.01933** 0.01938***

Time*Materials -0.00698** -0.01333 0.01065

Sigma 0.46945*** 0.44091*** 0.45275***

Class Membership Vector

Constant 0.94495*** -15.0185***

Index 1 - Structure 0.09313 3.77515***

Index 2 - Environmental sustainability 0.83765*** 7.16337***

Index 3 - Innovation-cooperation-commercialisation 0.31028*** -1.03609

Index 4 - Technology 0.58752*** 4.01745***

Index 5 - Diversity 0.85623*** -3.20101***

Index 6 - Individual -0.18432* -0.47461

Index 7 - Location 0.16269** 1.22987***

Index 8 - Household 0.05851 10.3661***

Index 9 - Financial 0.42522*** 2.13794***

Log-Likelihood Function -2923.43087

Inf.Cr.AIC / AIC/N 6000.9 / 1.496

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

30 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.28. Australian sheep farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land -0.32968 -0.98153 0.23768

Capital 0.02223 0.08649 -0.02139

Labour 0.67808* 0.37684 0.09947

Livestock -0.39944 -1.08686 -0.54643

Materials -1.51648*** 2.03158 0.20121

Land*Land -0.01767 0.00757 0.06589

Capital*Capital 0.00582* 0.08785 -0.12462*

Labour*Labour 0.00714* 0.01328 -0.00114

Livestock*Livestock 0.03910 0.18911 0.17068

Materials*Materials 0.09584*** -0.02783 -0.20713*

Land*Capital 0.00383 -0.01364 -0.06485

Land*Labour 0.05878** 0.00994 -0.18603

Land*Livestock 0.02072** -0.00775 0.02847

Land*Materials -0.02138 0.06133 0.10989

Capital*Labour -0.05334 -0.50926** -0.12328

Capital*Livestock 0.01509* 0.30769* -0.04636

Capital*Materials 0.03040 0.11158 0.39472**

Labour*Livestock -0.05056 0.08254 -0.04975

Labour*Materials 0.00757 0.11391 -0.01913

Livestock*Materials -0.03920 -0.37297** 0.05834

Time 0.07466 0.17214 -0.33041*

Time*Time 0.00145*** 0.00155 0.00111

Time*Land 0.00071 0.01066 0.00819

Time*Capital -0.00081 0.01795 0.00241

Time*Labour -0.00089 -0.00397 0.00279

Time*Livestock 0.00704 0.00922 0.00513

Time*Materials -0.01423*** -0.04585*** 0.01233

Number of observations / average group size 2968 / 2.32 397 / 1.80 646 / 1.64

R-squared / R-bar squared 0.9465 / 0.9046 0.9768 / 0.9388 0.9685 / 0.9102

Rho squared (residual variation) 0.6601 0.7881 0.9398

R-squared (within groups var) 0.4042 0.4854 0.4099

Hausman Test 110.32*** 30.24*** 52.46*

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 31

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.29. Australian sheep farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land -0.03965*** -0.04352 0.06935***

Capital 0.05000** 0.07521 0.03440

Labour 0.11851*** 0.48035*** 0.03061

Livestock -0.12200*** 0.15992*** 0.14614***

Materials 0.81647*** 0.22248*** 0.32757***

Returns-to-scale 0.82334*** 0.89444*** 0.60807***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.30. Table A B.1.30. Australian sheep farms: Class identification - mean values

indices

Mean values1, 1989 to 2018

Class 1: Most productive (73.9%)

Class 2: Least productive (9.9%)

Class 3: Medium productive (16.1%)

Index 1 - Structure -0.0352 0.4319 -0.1037

Index 2 - Environmental sustainability 0.2402 -0.1730 -0.9971

Index 3 – Innovation-cooperation-commercialisation -0.0229 0.0758 0.0585

Index 4 - Technology -0.2404 1.0735 0.4448

Index 5 - Diversity 0.5135 -1.6918 -1.3194

Index 6 - Individual -0.0699 0.3379 0.1135

Index 7 - Location 0.0534 -0.1501 -0.1531

Index 8 - Household -0.0726 1.0616 -0.3187

Index 9 - Financial -0.0667 0.4644 0.0212

Note: 1. At class means, scaled values.

Source: Estimations.

32 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

1.7. Australian wool farms

Table A D.1.31. Australian wool farms: Descriptive statistics

Sample 1989 to 2018

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 5168)

1st year (1989, n = 250)

Final year (2018, n = 219)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (AUD) 179 545 [0; 8 624 325]

76 741 [0; 679 487]

430 670 [0; 3 050 500]

Total output (AUD) 483 101 [0; 13 356 960]

345 527 [48 237; 2 561 299]

876 868 [57 153; 6 657 558]

Land (ha) 21 499 [25; 956 450]

20 274 [123; 956 450]

13 715 [128; 509 320]

Livestock Units (number) 7 913 [0; 96 498]

7 758 [1 135; 67 443]

6 511 [474; 48 324]

Capital depreciation (AUD) 33 854 [0; 819 409]

24 116 [0; 221 663]

44 265 [6 195; 218 864]

Hired labour (hour) 20 426 [949; 569 315]

15 035 [3 104;153 317]

44 434.16 [5 995; 247 772]

Family labour (hour) 92 955 [2 654; 1 591 224]

51 505 [8 676; 428 517]

124 193 [16 755; 692 519]

Materials (AUD) 220 531 [9 396; 5 746 246]

130 759 [11 184; 1 433 272]

345 645 [28 813; 1 729 391]

Stocking density (LU per ha) 3.31 [0.008; 31.19]

3.86 [0.03; 18.20]

3.50 [0.04; 15.55]

Organic (0-1 probability) 0.00135 [0; 1]

0 [0; 0]

0.013699 [0; 1]

Total assets (AUD) 3 826 584 [86 024; 75 745 652]

1 982 546 [261 984; 14 942 217]

7 975 898 [940 004; 53 364 952]

Age (years) 53.7 [18; 93]

49.5 [23; 85]

59.2 [18; 93]

TAD/CA/APM/WP(2020)2/ANN/FINAL 33

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.32. Australian wool farms: Latent class estimates

LCM panel translog reduced model, 1989 to 2018

Total output Class 1 Class 2 Class 3

Constant 7.71589*** 17.8771** 11.2515***

Land 0.02253 -0.17628 0.19567*

Capital -0.00804 0.31659 0.02552

Labour -0.44263 0.07783 -0.00024

Livestock -0.25972*** -1.39495** -1.69981***

Materials 0.48624** -0.33647 0.50161

Land*Land -0.00272 0.00697 -0.01408***

Capital*Capital 0.00208 -0.02927 -0.00149

Labour*Labour 0.02369* -0.01329 0.00943

Livestock*Livestock 0.04346*** 0.04718 0.13217***

Materials*Materials -0.00450 0.05452 -0.01995

Time -0.03131** -0.15896** -0.07787***

Time*Time 0.00224*** 0.00301*** 0.00103***

Time*Land 0.47718D-04 0.00056 0.01067***

Time*Capital -0.00236** 0.01063** -0.00482*

Time*Labour 0.00123 0.01442 0.00257

Time*Livestock 0.01179*** 0.03936*** -0.00035

Time*Materials -0.00872*** -0.04532*** 0.00029

Sigma 0.29276*** 0.18874*** 0.32675***

Class Membership Vector

Constant 1.30502*** -6.23462*** ---

Index 1 - Structure -0.06323 -2.53966*** ---

Index 2 - Environmental sustainability 0.07312 -0.59212*** ---

Index 3 - Innovation-cooperation-commercialisation -0.16434 0.15154 ---

Index 4 - Technology -0.40500*** -0.15264 ---

Index 5 - Diversity 0.62124*** 6.44772*** ---

Index 6 - Individual 0.06486 0.72417*** ---

Index 7 - Location -0.24594*** -0.04864 ---

Index 8 - Household -0.02176 -0.08085 ---

Index 9 - Financial -0.15942 -0.47212** ---

Log-Likelihood Function -1801.79913

Inf.Cr.AIC / AIC/N 3757.6 / 0.725

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

34 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.33. Australian wool farms: Full production function estimates

Fixed-effects panel translog model per class, 1989 to 2018

Total output Class 1 Class 2 Class 3

Land -0.32888* -1.51932 -0.56774

Capital -0.11777 -18.4133** -1.74630

Labour -0.84773* -6.25746 -2.86284**

Livestock 0.49504 -4.61905 3.43844***

Materials -0.40291 22.3210** -0.37110

Land*Land -0.02622*** -0.17429 -0.02358

Capital*Capital 0.00333 0.03807 0.07405

Labour*Labour 0.04490 0.00445 0.25671**

Livestock*Livestock 0.07513** 0.20648 0.04059

Materials*Materials 0.05198** -0.87785** 0.19247***

Land*Capital -0.00690 -1.02547 -0.03555

Land*Labour 0.04046** 1.70262** 0.09858

Land*Livestock 0.02782* -0.05700 -0.05113

Land*Materials 0.01524 -0.18017 0.03720

Capital*Labour -0.00738 1.93054** 0.10954

Capital*Livestock -0.00222 -0.35345 0.10606

Capital*Materials 0.02121 0.68793 -0.12905

Labour*Livestock -0.08102 -0.90878 -0.31476**

Labour*Materials 0.03216 -1.46040* -0.16105

Livestock*Materials -0.09458** 1.17169* -0.09770

Time 0.05416* 1.95668** 0.22305*

Time*Time 0.00208*** -0.00054 0.00055

Time*Land 0.00157 -0.12664* 0.00751

Time*Capital -0.00029 -0.14304** -0.00389

Time*Labour 0.00214 -0.02120 -0.00725

Time*Livestock 0.01140*** 0.07087 0.00468

Time*Materials -0.01898*** 0.00488 -0.01524

Number of observations / average group size 4169 / 2.53 166 / 1.42 851 / 1.57

R-squared / R-bar squared 0.9601 / 0.9332 0.9908 / 0.9309 0.9821 / 0.9459

Rho squared (residual variation) 0.7281 0.9871 0.9089

R-squared (within groups var) 0.4614 0.7269 0.4101

Hausman Test 187.62*** 34.03* 47.10**

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 35

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.1.34. Australian wool farms: Elasticities for classes

LCM panel translog reduced model, 1989 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land -0.02157*** -0.07107** 0.10545***

Capital 0.00912 -0.07166 -0.06490***

Labour 0.10825*** 0.04732 0.24864***

Livestock 0.61850*** 0.08669* 0.55832***

Materials 0.29037*** 0.11154** 0.00932

Returns-to-scale 1.00467*** 0.10281* 0.85683***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.1.35. Australian wool farms: Class identification - mean values indices

Mean values1, 1989 to 2018

Class 1: Most productive (80.4%)

Class 2: Least productive (3.2%)

Class 3: Medium productive (16.4%)

Index 1 - Structure 0.0437 -0.5804 -0.1008

Index 2 - Environmental sustainability 0.2355 -0.7425 -1.0090

Index 3 – Innovation-cooperation-commercialisation -0.1034 0.8975 0.3313

Index 4 - Technology -0.2835 0.2759 1.3352

Index 5 - Diversity 0.3835 0.6373 -2.0029

Index 6 - Individual -0.0338 0.8113 0.0071

Index 7 - Location -0.0801 0.0835 0.3760

Index 8 - Household -0.0438 0.6584 0.0863

Index 9 - Financial -0.0686 -0.1676 0.3688

Note: 1. At class means, scaled values.

Source: Estimations.

36 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

2. Chile

2.1. Chilean small-scale fruit farms

Table A D.2.1. Chilean small-scale fruit farms: Descriptive statistics

Sample 2015

Note: 1. Values are per year.

2- Gross value of production for output as supplied by national agency.

3- Excluding land.

Full sample (2015, n = 448)

Statistical measure Mean [Min; Max]

Variable 1

Fruit output (EUR) 2 8 380 [5; 116 134]

Land (ha) 2.93 [0.02; 60.1]

Fixed assets (EUR) 3 9 891 [0.6; 127 064]

Chemicals cost (EUR) 1 273 [0.2; 25 550]

Family labour (person) 1.3 [0.01; 7.1]

Hired labour (person) 0.6 [0; 1.1]

Age (years) 57.6 [26; 90]

Off-farm income (EUR) 72.9 [0; 1 935.6]

TAD/CA/APM/WP(2020)2/ANN/FINAL 37

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.2.2. Chilean small-scale fruit farms: Latent Class Estimates

LCM cross-section translog reduced model, 2015

Total fruit output Class 1 Class 2 Class 3

Constant 10.4391** 22.6688* 21.8045

Land 0.3979*** -0.0494 -0.2653*

Capital 1.0891** -0.9594 -0.3873

Chemicals -1.1999** -0.7658 -1.6129

Labour 0.1793 -0.3656 0.0679

Land*Land -0.0783*** -0.1315* 0.2095***

Capital*Capital -0.0315** 0.0359 0.0177

Chemicals*Chemicals 0.0562*** 0.0481 0.0986**

Labour*Labour 0.0209 0.0289 -0.0472

Sigma 0.6436*** 1.3729*** 0.6704***

Class Membership Vector

Constant 1.1058** 0.8092 ---

Index 1 - Structure 0.1289 0.3429 ---

Index 2 - Environmental sustainability -0.1909 -0.2137 ---

Index 3 – Innovation-cooperation-commercialisation 0.7562** -0.1291 ---

Index 4 - Technology 1.2062** 1.0664* ---

Index 5 - Diversity -0.5625* -0.8886** ---

Index 6 - Individual -0.2429 0.0736

Index 7 - Location -0.6424* -0.8407** ---

Index 8 - Household 0.1776 0.0894

Log-Likelihood Function -701.8881

Inf.Cr.AIC / AIC/N 1499 / 3.348

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

38 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.2.3. Chilean small-scale fruit farms: Full Production Function Estimates

Cross-sectional translog model per class, 2015

Total fruit output Class 1 Class 2 Class 3

Constant 10.1782 18.1016* 31.5875**

Land 0.0991 -0.8673 0.3713

Capital 1.1886** -1.0724 -0.3657

Chemicals -1.2729** -0.6093 -1.4247**

Labour 0.2564 1.0711 -3.6092

Land*Land -0.0793*** -0.1381** 0.2384***

Capital*Capital -0.0432*** 0.0416** 0.0139

Chemicals*Chemicals 0.0526** 0.0692 0.1052***

Labour*Labour 0.0123 0.1532 0.2604

Land*Capital 0.0176 -0.0207 -0.0081

Land*Chemicals -0.0105 0.0215 0.0142

Land*Labour 0.0225 0.1342 -0.1199

Capital*Chemicals 0.0157 0.0197 -0.0041

Capital*Labour 0.0059 -0.0597 0.0255

Chemicals*Labour -0.0092 -0.1604 -0.0435

Number of observations / average group size 200 162 86

R-squared / R-bar squared 0.7299 / 0.7094 0.3043 / 0.2381 0.8681 / 0.8421

F-Test 35.71*** 4.59*** 33.39***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.2.4. Chilean small-scale fruit farms: Elasticities for classes

LCM cross-sectional translog reduced model, 2015

Wald procedure based on delta method at sample means

Total fruit output Class 1 Class 2 Class 3

Land 0.3149*** 0.3069 0.0401

Capital 0.1303*** 0.3582 0.1235

Chemicals 0.2791*** 0.4167*** 0.8106***

Labour 0.4357*** 0.0274 0.0511*

Returns-to-scale 1.1599*** 1.1091** 1.5597**

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 39

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.2.5. Chilean small-scale fruit farms: Class identification - mean values indices

Mean values1, 2015

Class 1: Most productive (44.6%)

Class 2: Least productive (36.2%)

Class 3: Medium productive (19.2%)

Index 1 - Structure -0.1948 0.3898 -0.2813

Index 2 - Environmental sustainability 0.2485 -0.2462 -0.1142

Index 3 – Innovation-cooperation-commercialisation 1.0223 -0.9384 -0.6097

Index 4 - Technology 0.2184 -0.0265 -0.4581

Index 6 - Individual -0.0580 -0.3078 0.7146

Index 7 - Location -0.0872 0.1290 -0.0402

Index 8 - Household -0.0065 -0.3079 0.5952

Index 9 - Financial 0.0713 -0.0212 -0.1258

Note: 1. At class means, scaled values.

Source: Estimations.

40 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

3. Czech Republic

3.1. Czech dairy farms

Table A D.3.1. Czech dairy farms: Descriptive statistics

Sample 2005 to 2015

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 1 011)

1st year (2005, n = 52)

Final year (2015, n = 97)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 452 638 [6 156; 3 723 580]

343 033 [8 894; 2 112 335]

586 502 [10 928; 2 678 867]

Dairy cows (n) 193 [4; 829]

168 [6; 829]

240 [10; 824]

Capital depreciation (EUR) 97 868 [0; 891 729]

54 526 [157; 415 414]

184 891 [235; 881 109]

Fodder cost (EUR) 261 605 [1 742; 1 694 230]

177 787 [4 590; 1 222 558]

372 442 [1 741; 1 649 988]

Materials (EUR) 40 580 [77; 365 669]

26 113 [77; 341 627]

62 514 [454; 365 669]

Other cost (EUR) 101 329 [815; 833 065]

58 776 [1 334; 290 094]

130 827 [2 957; 543 852]

Hired labour (hour) 40 996 [0; 282 782]

37 313 [0; 257 733]

49 431 [0; 282 782]

Family labour (hour) 2 549 [0; 11 800]

2 733 [0; 11 800]

2 600 [0; 11 600]

Land (ha) 555 [10; 3 094]

473 [10; 1 736]

676 [18; 2 438]

Stocking density (LU per ha) 0.72 [0.23; 2.34]

0.72 [0.27; 2.07]

0.74 [0.28; 1.63]

Chemicals cost (EUR) 25 800 [0; 444 050]

12 498 [0; 172 166]

46 003 [0; 353 641]

Organic (0-1 probability) 0.1474 [0; 1]

0.1351 [0; 1]

0.1341 [0; 1]

Total assets (EUR) 2 276 195 [19 399; 17 622 802]

1 553 341 [24 363; 13 804 403]

2 782 801 [32 167; 17 622 802]

Age (years) 52.4 [25; 74]

49.3 [25; 67]

55.1 [25; 74]

Less-Favoured-Area (1-3 severely disadvantaged )

2.2225 [1; 3]

2.2811 [1; 3]

2.1649 [1; 3]

TAD/CA/APM/WP(2020)2/ANN/FINAL 41

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.3.2. Czech dairy farms: Latent class estimates

LCM panel translog reduced model, 2005 to 2015

Total dairy output Class 1 Class 2 Class 3

Constant 15.2201** 0.0241 5.1982

Dairy Cows -0.7939 0.4893 05088

Capital -0.7146*** -0.0367 0.0136

Materials -1.7429*** -0.1591 -0.3225

Fodder 0.9228 0.2487 1.8623***

Fuel 0.8090 1.1322** -1.2172***

Labour -0.0858 -0.4492*** 0.2204

Dairy cows*Dairy cows 0.0713 -0.0232 -0.0311

Capital*Capital 0.0281*** 0.0056 0.0011

Materials*Materials 0.0629*** 0.0121 0.0168

Fodder*Fodder -0.0136 0.0007 -0.0459*

Fuel*Fuel -0.0151 -0.0291 0.0463***

Labour*Labour 0.0249 0.0463** -0.0571

Time 0.7549*** 0.0919 0.2727

Time*Time 0.0048*** 0.0072** 0.0036*

Time*Dairy Cows 0.0655*** 0.0218 0.0385*

Time*Capital -0.0009 -0.0063 -0.0027

Time*Materials 0.0042 -0.0158 0.0087

Time*Fodder -0.0267** 0.0071 -0.0716***

Time*Fuel -0.0408*** -0.0113 0.0374***

Time*Labour -0.0165 0.0229 -0.0077

Sigma 0.1601*** 0.2553*** 0.2002***

Class Membership Vector

Constant 2.7531 2.6087 ---

Index 1 - Structure -7.8716*** -2.7787* ---

Index 2 - Environmental sustainability 1.2419** 2.7697*** ---

Index 3 – Innovation-cooperation-commercialisation -1.5674 -3.0878* ---

Index 4 - Technology 0.0644 -0.8533* ---

Index 5 - Diversity -1.7175*** 4.7171*** ---

Index 7 - Location -0.7671 1.5388** ---

Log-Likelihood Function 135.026

Inf.Cr.AIC / AIC/N -110.1 / -0.109

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

42 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.3.3. Czech dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 2005 to 2015

Total dairy output Class 1 Class 2 Class 3

Dairy cows 0.0016 6.3909* -2.9986

Capital 0.8414 0.7419 -0.7224

Materials 0.3104 0.3604 1.2756

Fodder 2.9442 -4.1331 1.9299

Fuel -0.5317 -6.1935** -1.8131

Labour -0.8219 3.3208 3.5491

Dairy cows*Dairy cows -0.3578 0.1413 0.1588

Capital*Capital 0.0333* 0.0051 -0.0058

Materials*Materials -0.0225 -0.0762** -0.0049

Fodder*Fodder 0.0036 0.1180 -0.0032

Fuel*Fuel 0.0475 0.1635 0.0562

Labour*Labour -0.3469*** 0.1771 0.3652**

Dairy cows*Capital 0.0167 0.2129* -0.10006

Dairy cows*Materials 0.0461 0.0489 0.2218**

Dairy cows*Fodder 0.0436 -0.3239 0.0028

Dairy cows*Fuel 0.1215 -0.4831* 0.1139

Dairy cows*Labour 0.2967 0.1985 -0.3478

Capital*Materials -0.0199 0.0149 -0.0395

Capital*Fodder -0.1439** -0.1414 0.1196**

Capital*Fuel 0.0381 0.0127 0.0029

Capital*Labour 0.0437 -0.0825 0.245

Materials*Fodder -0.0094 0.0629 -0.1818**

Materials*Fuel 0.0229 0.0119 0.0859

Materials*Labour 0.0402 0.0329 -0.0739

Fodder*Fuel -0.0955 0.2850 -0.0587

Fodder*Labour 0.1869 -0.1378 -0.0752

Fuel*Labour -0.1712 -0.1451 -0.1254

Time 0.2038 0.1707 0.0671

Time*Time 0.0054*** 0.0055*** 0.0024

Time*Dairy cows -0.0159 0.0132 -0.0097

Time*Capital -0.0017 0.0099 0.0024

Time*Materials 0.0007 -0.0032 0.0105

Time*Fodder 0.0092 -0.0059 -0.0361*

Time*Fuel -0.0214 -0.0257 0.0263**

Time*Labour 0.0086 0.0218 0.0192

Number of observations / average group size 343 / 4.29 328 / 3.52 340 / 6.42

R-squared / R-bar squared 0.9795 / 0.9692 0.9888 / 0.9817 0.9631 / 0.9503

Rho squared (residual variation) 0.9228 0.8303 0.6068

R-squared (within groups var) 0.6685 0.5828 0.6201

Hausman Test 83.42*** 61.86*** 43.84*

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 43

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.3.4. Czech dairy farms: Elasticities for classes

LCM panel translog reduced model, 2005 to 2015

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Dairy cows 0.4792*** 0.4381*** 0.5287***

Capital 0.0692*** 0.0697*** 0.0242***

Material 0.0852*** 0.0317*** 0.1103***

Fodder 0.3053*** 0.3177*** 0.2041***

Fuels 0.0742*** 0.2565*** 0.1559***

Labour 0.0186*** 0.0883*** 0.0626***

Returns-to-scale 1.1211*** 1.2020*** 1.0857***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.3.5. Czech dairy farms: Class identification - mean values indices

Mean values1, 2005 to 2015

Class 1: Most productive (33.9%)

Class 2: Medium productive (32.5%)

Class 3: Least productive (33.6%)

Index 1 - Structure -1.5974 0.1502 1.4666

Index 2 - Environmental sustainability 0.3087 0.4622 -0.7574

Index 3 – Innovation-cooperation-commercialisation 0.6923 -0.2304 -0.4761

Index 4 – Technology 0.2450 -0.2415 -0.0142

Index 5 – Diversity 0.0865 0.9826 -1.0353

Index 7 – Location 0.2703 1.2756 -0.6735

Note: 1. At class means, scaled values.

Source: Estimations.

44 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

4. Denmark

4.1. Danish dairy farms

Table A D.4.1. Danish dairy farms: Descriptive statistics

Sample 2006 to 2016

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 17 121)

1st year (2010, n = 2 756)

Final year (2016, n = 2 131)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 615 190 [3 140; 8 101 894]

494 345 [9 349; 4 222 505]

787 739 [3 140; 10 867 880]

Dairy cows (n) 172 [1; 2 460]

152 [6; 1 067]

199 [2.5; 2 460]

Capital depreciation (EUR) 71 668 [0; 642 233]

70 626 [0; 447 364]

78 403 [0; 642 233]

Fodder cost (EUR) 166 676 [0; 3 238 438]

129 189 [5 215; 1 600 867]

201 304 [280; 3 238 438]

Materials (EUR) 49 012 [0; 1 046 274]

49 668 [1 329; 513 233]

54 202 [0; 1 046 274]

Hired labour (hour) 3 163 [0; 44 580]

2 384 [0; 25 834]

3 960 [0; 44 580]

Family labour (hour) 2 870 [0; 20 545]

2 886 [0; 18 264]

2 812 [0; 13 008]

Land (ha) 54.8 [0; 914]

47.6 [0; 807]

63.4 [0; 768.2]

Stocking density (LU per ha) 7.89 [0; 633.3]

7.77 [0; 307.6]

8.08 [0; 544.7]

Chemicals cost (EUR) 18 873 [0; 238 982]

15 586 [0; 110 030.7]

22 038 [0; 169 640]

Organic (0-1 probability) 0.2889 [0; 1]

0.2906 [0; 1]

0.2684 [0; 1]

Total assets (EUR) 3 794 599 [0; 60 768 505]

4 277 617 [0; 60 768 505]

3 836 263 [157 030; 19 618 377]

Age (years) 48.3 [22; 105]

46.6 [24; 99]

51.1 [22; 105]

Total subsidies (EUR) 114 925 [0; 1 371 813]

66 382 [0; 351 295]

162 957 [0; 1 371 813]

TAD/CA/APM/WP(2020)2/ANN/FINAL 45

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.2. Danish dairy farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2016

Total dairy output Class 1 Class 2 Class 3

Constant 13.1272*** -3.7601*** 2.0177*

Land -0.0320*** -0.0224* 0.0019

Dairy Cows 1.1402*** 0.2083*** 0.6353***

Capital -0.0792*** 0.3496*** -0.1386***

Material -0.2733*** 1.1787*** 1.3341***

Labour -0.4622*** 0.8217*** -0.5989***

Land*Land 0.0077*** 0.0065*** -0.0006

Dairy cows*Dairy cows -0.0623*** 0.0117* -0.0478***

Capital*Capital 0.0051*** -0.0013 0.0098***

Materials*Materials 0.0172*** -0.0369*** -0.0356***

Labour*Labour 0.0396*** -0.0343*** 0.0619***

Time -0.1817*** -0.1836*** -0.1118**

Time*Time 0.0058*** 0.0084*** -0.0006

Time*Land 0.0006 0.0027*** 0.0002

Time*Dairy Cows -0.0049* -0.0074 -0.0015

Time*Capital 0.0008*** -0.0203*** 0.0011

Time*Material 0.0144*** 0.0201*** 0.0168***

Time*Labour -0.0101*** 0.0107*** -0.0118**

Sigma 0.0972*** 0.1689*** 0.1579***

Class Membership Vector

Constant 3.8194*** 0.0001 ---

Index 1 - Structure -0.6592*** -0.2583** ---

Index 2 - Environmental sustainability 0.7302*** 3.1835*** ---

Index 3 – Innovation-cooperation-commercialisation 0.1664** 0.1991 ---

Index 4 - Technology 1.2777*** 4.3237*** ---

Index 5 - Diversity 2.9316*** 5.2951*** ---

Index 6 - Individual -0.3969*** -0.6584***

Index 7 - Location 0.0179 -0.0236 ---

Index 8 - Household 0.1673 0.2929**

Index 9 - Financial 0.2425** 0.9934***

Log-Likelihood Function 11128.5

Inf.Cr.AIC / AIC/N -22103 / -1.291

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

46 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.3. Danish dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2016

Total dairy output Class 1 Class 2 Class 3

Land 0.0752 -0.3919** 0.4065**

Dairy cows 2.5901*** 2.6291*** 2.0589**

Capital 0.0261 0.8816** 0.8949***

Material -0.3421 -0.4557 -0.3278

Labour -1.4157*** -1.1065 -0.3089

Land*Land 0.0066*** 0.0099** -0.0022

Dairy cows*Dairy cows 0.1135*** 0.2973*** -0.0127

Capital*Capital 0.0025*** -0.0589*** 0.0055***

Materials*Materials 0.0301** 0.0873*** 0.1031***

Labour*Labour 0.1605*** -0.0134 0.1020*

Land*Dairy cows 0.0115* -0.0147 0.0783***

Land*Capital 0.0007 0.0344*** -0.0225***

Land*Material -0.0041 -0.0046 0.0148

Land*Labour -0.0127** 0.0033 -0.0811***

Dairy cows*Capital 0.0051 0.0194 0.1349***

Dairy cows*Material -0.0802** -0.1692*** -0.2739***

Dairy cows*Labour -0.2505*** -0.3553*** 0.0358

Capital*Material -0.0030 -0.0918*** -0.0686***

Capital*Labour -0.0056 0.2094*** -0.0691***

Material*Labour 0.0169 0.0318 -0.0139

Time -0.1112*** -0.2107*** 0.0101

Time*Time 0.0055*** 0.0135*** -0.0021***

Time*Land 0.0006* 0.0014 -0.0005

Time*Dairy cows 0.0044* 0.0184*** 0.0201**

Time*Capital 0.0005 -0.0079** 0.0013

Time*Material 0.0041** 0.0014 0.0059

Time*Labour -0.0056*** 0.0017 -0.0181**

Number of observations / average group size 11 464 / 4.70 2734 / 2.56 2923

R-squared / R-bar squared 0.9912 / 0.9888 0.9896 / 0.9826 0.9926 / 0.9851

Rho squared (residual variation) 0.6513 0.9348 0.7786

R-squared (within groups var) 0.9385 0.7307 0.7602

Hausman Test 282.24*** 258.87*** 214.56***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 47

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.4. Danish dairy farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2016

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Land 0.0249*** 0.0457*** 0.0003

Dairy cows 0.4714*** 0.2625*** 0.1775***

Capital 0.0567*** 0.1538*** 0.1108***

Material 0.3335*** 0.3025*** 0.4666***

Labour 0.1425*** 0.3193*** 0.3457***

Returns-to-scale 1.0291*** 1.0838*** 1.1008***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.4.5. Danish dairy farms: Class identification - mean values indices

Mean values1

Class 1: Most productive (66.9%)

Class 2: Medium productive (15.9%)

Class 3: Least productive (17.2%)

Index 1 - Structure -0.1459 -0.0030 0.5749

Index 2 - Environmental sustainability -0.2879 1.1130 0.0873

Index 3 – Innovation-cooperation-commercialisation 0.0763 0.0466 -0.3427

Index 4 - Technology -0.0578 0.4853 -0.2276

Index 5 - Diversity 0.2199 1.3527 -2.1279

Index 6 - Individual -0.0289 -0.0263 0.1382

Index 7 - Location 0.0144 -0.0305 -0.0281

Index 8 - Household -0.0292 0.1931 -0.0663

Index 9 - Financial 0.0655 0.4719 -0.6981

Note: 1. At class means, scaled values.

Source: Estimations.

48 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

4.2. Danish pig farms

Table A D.4.6. Danish pig farms: Descriptive statistics

Sample 2006 to 2016

Note: 1. Values are per year.

Full sample (n = 21 765)

1st year (2006, n = 1 834)

Final year (2016, n = 1 690)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Total output (EUR) 811 713 [0; 8 471 053]

535 920 [0; 3 286 469]

1 207 712 [0; 8 471 053]

Livestock value (EUR) 289 104 [0; 4 072 788]

207 794 [0; 1 406 573]

424 979 [0; 4 072 788]

Capital depreciation (EUR) 87 745 [0; 965 147]

65 484 [0; 381 379]

112 446 [0; 798 053]

Fodder cost (EUR) 461 349 [0; 5 802 611]

212 727 [0; 1 367 059]

613 204 [0; 4 535 778]

Materials (EUR) 52 881 [0; 1 869 756]

35 346 [0; 371 931]

76 088 [0; 829 366]

Hired labour (h) 3 497 [0; 41 053]

2 433 [0; 20 717]

4 903 [0; 41 053]

Family labour (h) 2 935 [0; 263 485]

3 153 [0; 11 773]

2 496 [0; 11 896]

Land (ha) 173.2 [0; 2 246]

144.4 [0; 1 122.4]

202.1 [0; 1 848.6]

Livestock value per ha (EUR per ha) 1 669 [0; 1 814]

1 263 [0; 1 439]

2 103 [0; 2 203]

Chemicals cost (EUR) 30 428 [0; 432 921]

16 476 [0; 200 918]

44 816 [0; 432 921]

Organic (0-1 probability) 0.1968 [0; 1]

0.2557 [0; 1]

0.1615 [0; 1]

Total assets (EUR) 5 180 472 [0; 39 793 302]

3 999 853 [0; 27 793 137]

5 959 486 [0; 39 793 302]

Age (years) 46.8 [22; 93.4]

43.9 [25; 95]

50.1 [22; 105]

Total subsidies (EUR) 71 796 [0; 958 460.6]

43 037 [0; 324 292]

106 249 [0; 958 461]

Farm Type Rearing & Fattening (0-1 probability)

0.2267 [0; 1]

0.2241 [0; 1]

0.2201 [0; 1]

Farm Type Specialist Rearing (0-1 probability)

0.3357 [0; 1]

0.3195 [0; 1]

0.3633 [0; 1]

Farm Type Fattening (0-1 probability)

0.4376 [0; 1]

0.4564 [0; 1]

0.4166 [0; 1]

TAD/CA/APM/WP(2020)2/ANN/FINAL 49

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.7. Danish pig farms, type rearing and fattening: Latent class estimates

LCM panel translog reduced model, 2006 to 2016

Total livestock output Class 1 Class 2 Class 3

Constant 7.0765*** 3.1083*** 2.7974***

Land 0.0479* -0.0068 -0.0247**

Capital -0.2287*** -0.0979*** -0.0572***

Fodder -0.4256*** -0.6877*** -0.3349***

Labour 1.5194*** 1.3706*** -0.0577

Livestock -0.0202** -0.1123*** -0.1299***

Other inputs livestock -0.0332*** 0.0091 0.0043

Materials 0.0885 0.8973*** 1.5252***

Land*Land 0.0182*** 0.0033 0.0091***

Capital*Capital 0.0146*** 0.0046*** 0.0023***

Fodder*Fodder 0.0299*** 0.0472*** 0.0213***

Labour*Labour -0.0707*** -0.0671*** 0.0171

Livestock*Livestock 0.0003 0.0085*** 0.0086***

Other inputs livestock*Other inputs livestock 0.0029*** -0.0018 -0.0005

Materials*Materials -0.0054 -0.0354*** -0.0436***

Time -0.1928*** -0.1317** 0.0163

Time*Time -0.0002 0.0032** -0.0002

Time*Land -0.0131*** 0.0012 -0.0031***

Time*Capital -0.0002 0.0085*** 0.0029***

Time*Fodder 0.0077*** 0.0252*** 0.0085***

Time*Labour -0.0215*** -0.0387*** -0.0081**

Time*Livestock 0.0021*** 0.0019 -0.0003

Time*Other inputs livestock 0.0007 0.0022** -0.67e-05

Time*Materials 0.0248*** -0.0061 -0.0051*

Sigma 0.1069*** 0.1686*** 0.0926***

Class Membership Vector

Constant 0.2860** -2.7297*** ---

Index 1 - Structure 0.7804*** 0.7659*** ---

Index 2 - Environmental sustainability 0.9369*** 2.1615*** ---

Index 3 – Innovation-cooperation-commercialisation 0.1501* -0.0522 ---

Index 4 - Technology 2.6668*** 0.3995 ---

Index 5 - Diversity 0.3552*** 0.0957 ---

Index 6 - Individual 0.1016 -0.0231 ---

Index 7 - Location 0.2937*** 0.4594*** ---

Index 8 - Household 0.1444 0.3522*** ---

Index 9 - Financial 0.2248 -1.7015*** ---

Log-Likelihood Function 3320.96

Inf.Cr.AIC / AIC/N -6451.9 / -1.308

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

50 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.8. Danish pig farms, type specialist fattening: Latent class estimates

LCM panel translog reduced model, 2006 to 2016

Total livestock output Class 1 Class 2 Class 3

Constant 11.0257*** 3.0455*** 5.5386***

Land -0.0618*** -0.0173 -0.0078

Capital -0.0688*** 0.0187 -0.0275***

Labour 0.9265*** 2.2211*** 1.9099***

Livestock -0.0732*** -0.0701*** -0.0537***

Other inputs livestock 0.0019 0.0062* 0.0015

Materials -0.5461*** -0.4044*** -0.6811***

Land*Land 0.0204*** 0.0101*** 0.0037**

Capital*Capital 0.0066*** 0.0052*** 0.0024***

Labour*Labour -0.0322*** -0.1215*** -0.1089***

Livestock*Livestock 0.0036*** 0.0031*** 0.0037***

Other inputs livestock*Other inputs livestock -0.0007 -0.0008*** 0.0002

Materials*Materials 0.0309*** 0.0329*** 0.0519***

Time -0.0225 -0.0289* 0.0654***

Time*Time -0.0004 0.0004 0.0021***

Time*Land -0.0088*** -0.0051*** 0.0004

Time*Capital -0.0033** -0.0085*** -0.0005

Time*Labour 0.0004 0.0175*** 0.0011

Time*Livestock 0.0031*** 0.0046*** 0.0006*

Time*Other inputs livestock -0.0004 0.0002 -0.0004

Time*Materials 0.0066*** -0.0016 -0.0058**

Sigma 0.1147*** 0.1004*** 0.1432***

Class Membership Vector

Constant 0.2463 1.8365*** ---

Index 1 - Structure 0.1076 0.5221*** ---

Index 2 - Environmental sustainability -0.4581*** -0.4909*** ---

Index 3 – Innovation-cooperation-commercialisation 0.4445*** 0.2602*** ---

Index 4 - Technology 0.2274** 0.1532* ---

Index 5 - Diversity 0.4735*** 0.0663 ---

Index 6 - Individual -0.3511*** -0.1506** ---

Index 7 - Location -1.0246*** -0.3698*** ---

Index 8 - Household -0.1308 -0.1179 ---

Index 9 - Financial 2.7286*** 2.0684*** ---

Log-Likelihood Function 6015.62

Inf.Cr.AIC / AIC/N -11859.2 / -1.245

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 51

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.9. Danish pig farms, type rearing and fattening: Full production function

estimates

Fixed-effects panel translog model per class, 2006 to 2016

Total livestock output Class 1 Class 2 Class 3

Land 0.7031*** 0.1973 0.0741

Capital 0.1257 0.0926 0.1631

Fodder 0.1913 -0.1421 -0.2118**

Labour 0.9285*** 1.2569 0.1982

Livestock -0.0219 0.0576 -0.1035**

Other inputs livestock -0.0193 0.1200 0.0341

Materials -0.3415 -0.1849 0.9673***

Land*Land 0.0104** 0.0018 0.0031

Capital*Capital 0.0193*** 0.0058* 0.0029**

Fodder*Fodder 0.0311*** 0.0515*** 0.0174***

Labour*Labour 0.1331*** 0.1517*** 0.1851***

Livestock*Livestock 0.0034*** 0.0135*** 0.0079***

Other inputs livestock*Other inputs livestock 0.0031*** -0.0025 -0.002

Materials*Materials 0.0308** -0.0359 0.0494***

Land*Capital -0.006 -0.0222** -0.0003

Land*Fodder 0.0267** 0.0225 -0.0124*

Land*Labour -0.0466* -0.0346 0.0335***

Land*Livestock 0.0014 0.0207* -0.0047

Land*Other inputs livestock -0.0021 0.0028 0.0008

Land*Material -0.0516*** -0.0143 -0.0092

Capital*Fodder -0.0428*** -0.0262 -0.0071

Capital*Labour -0.0130 0.0320 -0.0138

Capital*Livestock -0.0014 -0.0042 0.0036

Capital*Other inputs livestock 0.0070*** -0.0016 -0.0022**

Capital*Material 0.0164 0.0051 -0.0019

Fodder*Labour -0.0537** -0.2021*** -0.0098

Fodder*Livestock -0.0003 -0.0091 0.0029**

Fodder*Other inputs livestock -0.0074*** -0.0099 -0.0026

Fodder*Material 0.0180 0.0962** 0.0154

Labour*Livestock -0.0209*** -0.0168 0.0005

Labour*Other inputs livestock 0.0044 -0.0126 0.0035

Labour*Material -0.1047*** -0.0453 -0.2301***

Livestock*Other Inputs Livestock 0.009** -0.0003 0.0004

Livestock*Material 0.1247*** -0.0009 -0.0061

Other inputs livestock*Material -0.0032 0.0127 -0.0003

Time -0.1139*** -0.0925 0.0529**

Time*Time -0.0006*** 0.0024** -0.0004

Time*Land -0.0078*** 0.0025 -0.0009

Time*Capital 0.0057*** 0.0064 0.0016**

Time*Fodder -0.0006 0.0069 0.0049**

Time*Labour -0.0141*** -0.0128 0.0016

Time*Livestock 0.0004 0.0016 -0.0005

Time*Other inputs livestock 0.0006*** 0.0022** 0.00021

Time*Material 0.0175*** -0.0019 -0.0098***

Number of observations / average group size 2369 / 4.64 433 / 2.71 2132 / 4.62

R-squared / R-bar squared 0.9887 / 0.9853 0.9939 / 0.9884 0.9894 / 0.9861

Rho squared (residual variation) 0.9224 0.9201 0.6143

R-squared (within groups var) 0.8755 0.8982 0.9229

Hausman Test 204.14*** 113.75*** 112.50***

Note: *significant at 10%, **significant at 5%, ***significant at 1%. Source: Estimations.

52 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.10. Danish pig farms, type specialist fattening: Full production function

estimates

Fixed-effects panel translog model per class, 2006 to 2016

Total livestock output Class 1 Class 2 Class 3

Land 0.6320*** 0.1279 -0.2578***

Capital -0.0132 0.1071 0.0074

Labour 0.6134*** 1.8598*** 1.0801***

Livestock 0.0037 -0.0465*** -0.0432**

Other inputs livestock 0.0052 0.0051 -0.0379

Materials -0.3874** -0.3413*** -0.2361

Land*Land 0.0415*** 0.0009 0.0024

Capital*Capital 0.0051*** 0.0153*** 0.0026***

Labour*Labour 0.04612* -0.1454*** 0.0659***

Livestock*Livestock 0.0026*** 0.0031*** 0.0029***

Other inputs livestock*Other inputs livestock -0.0004 -0.0007** 0.0028***

Materials*Materials 0.0751*** 0.0348*** 0.0621***

Land*Capital -0.0307*** 0.0048 0.0024

Land*Labour 0.0957*** 0.0228** -0.0323***

Land*Livestock 0.0164*** -0.0009 -0.0004

Land*Other Inp Livestock -0.0004 -0.0002 -0.0014

Land*Materials -0.1119*** -0.0227*** 0.0034***

Capital*Labour 0.0008 0.0056 -0.0052

Capital*Livestock -0.0021*** 0.0004 -0.0021***

Capital*Other inputs livestock 0.0001 0.0007 0.0011

Capital*Materials 0.0106 -0.0322*** 0.0014

Labour*Livestock -0.0101*** -0.0048 -0.0067

Labour*Other inputs livestock -0.0030 0.0006 -0.0017

Labour*Materials -0.1011*** 0.0467*** -0.1207***

Livestock*Other inputs livestock -0.0003 -0.0003* 0.0007**

Livestock*Materials -0.0033 0.0014 0.0054**

Other inputs livestock*Materials 0.0022 0.0046 0.0064

Time 0.0241 -0.0169 0.445**

Time*Time 0.0002 -0.0002 0.0021***

Time*Land -0.0002 -0.0037*** -0.0025***

Time*Capital -0.0023 -0.0032*** 0.0002

Time*Labour 0.0125*** 0.0107*** 0.0159***

Time*Livestock 0.0038*** 0.0041*** 0.0005

Time*Other inputs livestock -0.00028 0.0008 0.0004

Time*Material -0.0085*** -0.0031*** -0.0125***

Number of observations / average group size 1852 /3.88 5670 / 5.39 2002 / 3.48

R-squared / R-bar squared 0.9896 / 0.9856 0.9853 / 0.9819 0.9899 / 0.9856

Rho squared (residual variation) 0.8462 0.8063 0.7204

R-squared (within groups var) 0.9177 0.9125 0.9008

Hausman Test 422.15*** 102.91*** 132.86***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 53

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.11. Danish pig farms, type rearing and fattening: Elasticities for classes

LCM panel translog reduced model, 2006 to 2016

Wald procedure based on delta method at sample means

Total livestock output Class 1 Class 2 Class 3

Land 0.1501*** 0.0223* 0.0523***

Capital 0.1484*** 0.0563*** 0.0207***

Fodder 0.4911*** 0.7765*** 0.3671***

Labour 0.1844*** 0.0753* 0.2057***

Livestock 0.0009 0.1211*** 0.1221***

Other Inputs Livestock 0.0211*** 0.0117 0.0023

Materials 0.0955*** 0.0071 0.3029***

Returns-to-scale 1.0473*** 1.0703*** 1.0729***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.4.12. Danish pig farms, type specialist fattening: Elasticities for classes

LCM panel translog reduced model, 2006 to 2016

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Land 0.1051*** 0.4914*** 0.1772***

Capital 0.0848*** 0.1013*** 0.0266***

Labour 0.3761*** 0.3555*** 0.2384***

Livestock 0.0462*** 0.0392*** 0.0421***

Other Inputs Livestock 0.0728 0.0035* 0.0003

Materials 0.3898*** 0.2584*** 0.5354***

Returns-to-scale 1.0747*** 1.2494*** 1.0199***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.4.13. Danish pig farms, type rearing and fattening: Class identification - mean

values indices

Mean values1

Class 1: Medium productive (48.0%)

Class 2: Least productive (8.8%)

Class 3: Most productive (43.2%)

Index 1 – Structure 0.6862 1.1176 -0.9895

Index 2 – Environmental sustainability 0.0016 1.1393 -0.2332

Index 3 – Innovation-cooperation-commercialisation -0.0173 -0.6529 0.1519

Index 4 – Technology 0.0862 -0.0577 -0.0841

Index 5 – Diversity 0.5208 -0.8660 -0.4028

Index 6 – Individual 0.1414 0.1054 -0.1786

Index 7 – Location 0.0362 0.2415 -0.0893

Index 8 – Household 0.0135 -0.0008 -0.0149

Index 9 – Financial -0.3131 -1.0601 0.5632

Note: 1. At class means, scaled values.

Source: Estimations.

54 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.4.14. Danish pig farms, type specialist fattening: Class identification - mean values

indices

Mean values1

Class 1: Most productive (19.4%)

Class 2: Medium productive (59.5%)

Class 3: Least productive (21.1%)

Index 1 - Structure -1.4742 0.2376 0.6910

Index 2 - Environmental sustainability -0.8319 0.0523 0.6213

Index 3 – Innovation-cooperation-commercialisation 0.5552 0.0659 -0.7002

Index 4 - Technology 0.1314 -0.0158 -0.0768

Index 5 - Diversity 0.8071 0.0584 -0.9120

Index 6 - Individual -0.1007 0.0132 0.0557

Index 7 - Location -0.4848 0.0308 0.3611

Index 8 - Household 0.2516 -0.0410 -0.1166

Index 9 - Financial 1.5537 -0.1439 -1.0296

Note: 1. At class means, scaled values.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 55

DRIVERS OF FARM PERFORMANCE Unclassified

5. Estonia

5.1. Estonian dairy farms

Table A D.5.1. Estonian dairy farms: Descriptive statistics

Sample 2000 to 2015

Note: LU per ha: livestock unit per ha. 1. Values are per year.

Full sample (n = 2 935)

1st year (2000, n = 221)

Final year (2015, n = 138)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 211 478 [0; 5 268 544]

48 840 [2 461; 953 028]

467 339 [0; 3 788 281]

Dairy cows (n) 105 [1; 1 808]

62 [3; 1 286]

224 [0.8; 1 745]

Capital depreciation (EUR) 38 448 [0; 897 141]

7 363 [0; 330 341]

110 184 [40; 737 739]

Fodder cost (EUR) 126 080 [0; 3 222 847]

17 939 [0; 320 865]

344 822 [390; 3 062 942]

Materials (EUR) 22 910 [0; 3 620 209]

4 356 [0; 132 215]

54 843 [75; 803 772]

Other cost (EUR) 14 915 [0; 508 724]

2 595 [0; 43 577]

38 039 [8; 408 545]

Hired labour (hour) 14 680 [0; 317 061]

12 191 [0; 317 061]

23 695 [0; 240 102]

Family labour (hour) 3 214 [0; 19 000]

4 228 [0; 11 980]

1 462 [0; 5 840]

Land (ha) 350 [0; 5862]

229 [12.8; 4 772]

593 [0; 5 700]

Stocking density (LU per ha) 0.67 [0; 57.1]

0.57 [0.13; 3.02]

0.97 [0; 20.30]

Chemicals cost (EUR) 20 692 [0; 827 250]

3 082.8 [0; 86 389]

55 426 [0; 772 367]

Organic (0-1 probability) 0.1141 [0; 1]

0.1041 [0; 1]

0.0652 [0; 1]

Total assets (EUR) 698 418 [1 625; 22 416 934]

119 844 [6 838; 1 893 708]

1 960 688 [14 259; 22 416 934]

Age (years) 51.5 [19; 86]

47.3 [23; 69]

53.9 [21; 82]

Less-Favoured-Area (0-1 probability)

0.7816 [0; 1]

0.5566 [0; 1]

1 [1; 1]

56 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.5.2. Estonian dairy farms: Latent class estimates

LCM panel translog reduced model, 2000 to 2015

Milk output Class 1 Class 2

Constant 4.9529*** 4.8574***

Dairy cows 1.2966*** 1.2309***

Capital 0.1419*** 0.1819*

Fodder -0.1297 -0.1324

Materials 0.1578 0.1425

Veterinary -0.0196 -0.0119

Labour hired 0.0034 -0.0789

Labour family -0.0375 -0.0211

Dairy cows*dairy cows -0.0925*** -0.0944***

Capital*capital -0.0077*** -0.0233***

Fodder*fodder 0.0202** 0.0497***

Materials*materials -0.0047 0.0109

Veterinary*veterinary 0.0069* 0.0024

Labour hired*labour hired -0.0006 -0.0065

Labour family*labour family 0.7625e-04 0.0229*

Time -0.0328* 0.2547

Time*time 0.0035*** -0.0216***

Time*dairy cows 0.1236 0.0003

Time*capital 0.0034** 0.0541***

Time*fodder -0.0071 -0.0259*

Time*materials -0.0059 -0.0115

Time*veterinary -0.0029 0.0036

Time*labour hired -0.0002 -0.0211*

Time*labour family 0.0052*** -0.0219***

Sigma 0.5174*** 0.8963***

Class Membership Vector

Constant -0.0031 ---

Index 1 - Structure -0.0418*** ---

Index 2 - Environmental sustainability -0.0029*** ---

Index 4 - Technology 0.0112*** ---

Index 5 - Diversity 0.0623*** ---

Index 6 - Individual 0.0518*** ---

Index 7 - Location -0.0002 ---

Log-Likelihood Function -2819.3636

Inf.Cr.AIC / AIC/N 5748 / 1.959

Note: 1- *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 57

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.5.3. Estonian dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 2000 to 2015

Milk output Class 1 Class 2

Dairy cows -1.4331*** -1.2993

Capital 0.8382*** -0.5781*

Fodder 0.6692*** 1.7878***

Materials 0.2961** 0.1666

Veterinary 0.3549*** 0.1596

Labour hired 0.0175 -0.0261

Labour family -0.0569 -0.0099

Dairy cows*dairy cows -0.1985*** -0.0184

Capital*capital 0.0031 -0.0127

Fodder*fodder -0.0094 -0.1738***

Materials*materials 0.0125* 0.0186**

Veterinary*veterinary 0.0092*** 0.0006

Labour hired*labour hired 0.0011 -0.0189

Labour family*labour family 0.0027 0.0067

Dairy cows*capital 0.1589*** -0.1011

Dairy cows*fodder 0.1461*** 0.2586*

Dairy cows*material 0.0383 -0.0015

Dairy cows*veterinary 0.0515*** 0.0582*

Dairy cows*labour hired 0.0086 0.0152

Dairy cows*family labour -0.0085 -0.0129

Capital*fodder -0.0799*** 0.0883*

Capital*materials -0.0488*** 0.0253

Capital*veterinary -0.0441*** 6.59e-05

Capital*labour hired -0.0006 0.0066

Capital*family labour 0.0111** -0.0054

Fodder*materials 0.0024 -0.0647*

Fodder*veterinary -0.0099 -0.0381

Fodder*labour hired -0.0041 0.0669

Fodder*labour family -0.0017 0.0154

Materials*veterinary -0.0051 0.0101

Materials*labour hired 0.0024 -0.0112

Materials*labour family -0.0046 0.0036

Veterinary*labour hired -0.0036** -0.0157

Veterinary*labour family 0.0013 -0.0071

Labour hired*labour family 0.0051 -0.0039

Time -0.1504*** -0.1987**

Time*time -0.0019*** -0.0112***

Time*dairy cows -0.0467*** -0.0421**

Time*capital 0.0091*** 0.0037

Time*fodder 0.0263*** 0.0586***

Time*materials -0.0017 -0.0049

Time*veterinary 0.0025 0.0077*

Time*labour hired 0.0006 -0.0129

Time*labour family -0.0016 -3.33e-07

Number of observations / average group size 2431 / 6.30 504 / 3.79

R-squared / R-bar squared 0.9591 / 0.9503 0.9988 / 0.9981

Rho squared (residual variation) 0.5815 0.9974

R-squared (within groups var) 0.6962 0.8439

Hausman Test 89.06***(0.0000) 128.87***(0.0000)

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

58 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.5.4. Estonian dairy farms: Elasticities for classes

LCM panel translog reduced model, 2000 to 2015

Wald procedure based on delta method at sample means

Milk output Class 1 Class 2

Dairy cows 0.8642*** 0.7592***

Capital 0.1459*** 0.1427***

Fodder 0.1094** 0.1718***

Materials 0.0393 0.0059

Veterinary 0.0227** 0.0058

Labour hired 0.0034 0.0066

Labour family 0.0047 0.0979***

Returns-to-scale 1.1896*** 1.1651***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.5.5. Estonian dairy farms: Class identification - mean values indices

Mean values1

Class 1: Least productive (83%)

Class 2: Most productive (17%)

Index 1 - Structure -0.4595 2.2165

Index 2 - Environmental sustainability 1.8418 -8.8839

Index 3 – Innovation-cooperation-commercialisation -2.8488 13.7411

Index 4 - Technology -1.8691 9.0153

Index 5 - Diversity 1.1648 -5.6182

Index 6 - Individual 3.3621 -16.2166

Index 7 - Location 0.7012 -3.3821

Note: 1- at class means, scaled values.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 59

DRIVERS OF FARM PERFORMANCE Unclassified

6. France

6.1. French dairy farms

Table A D.6.1. French dairy farms: Descriptive statistics

Sample 1990 to 2013

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 28 711)

1st year (1990, n = 1 491)

Final year (2013, n = 1 040)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 107 809 [0; 894 275]

69 969 [11 011; 286 367]

181 083 [14 027; 894 275]

Total output (EUR) 156 934 [3 901; 1 834 396]

101 089 [11 311; 456 071]

260 759 [19 436; 1 834 396]

Dairy cows (number) 44.4] [7; 250]

35.0 [8; 128]

59.4 [11; 249]

Capital depreciation (EUR) 22 284 [0; 292 897]

9 678.938 [0; 59 077]

42 316 [1; 292 897]

Fodder cost (EUR) 18 370 [0; 243 322]

11 793 [0; 66 916]

16 202 [0; 163 519]

Materials (EUR) 4 919.896 [0; 754 15]

2 878.746 [26; 14 865]

7 346 [56; 70 817]

Hired labour (AWU) 0.4251 [0.1822; 2.2452]

0.404 [0.2246; 1.3323]

0.3557 [0.1829; 1.4522]

Family labour (AWU) 1.3243 [0.5678; 6.9948]

1.2155 [0.6754; 4.0072]

1.5891 [0.8171; 6.4878]

Land (ha) 72.0 [0; 521]

47.0 [9; 255]

99.1 [9; 504]

Stocking density (LU per ha) 1.56 [0; 274.43]

1.6208 [0.2944; 6.7583]

1.481 [0.3647; 6.7615]

Chemicals cost (EUR) 9 460 [0; 163 519]

6 505 [0; 36 380]

16 202 [0; 163 519]

Organic (0-1 probability) 0.021 [0; 1]

0 [0; 0]

0.0664 [0; 1]

Total assets (EUR) 299 848 [0; 2 987 444]

193 259 [18 469; 858 598]

486 083 [25 335; 2 987 444]

Age (years) 46.3 [1; 113]

37.8 [1; 90]

57.2 [26; 113]

60 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.6.2. French dairy farms: Latent class estimates

LCM panel translog reduced model, 1990 to 2013

Total output Class 1 Class 2 Class 3

Constant 8.74747*** 6.34980*** 5.10532***

Land -0.80056*** 0.33925*** 0.30699***

Dairy Cows 1.82797*** 0.45151*** 0.47985***

Capital -0.50898*** -0.08403*** -0.24173***

Labour 0.21348*** 0.07442*** 0.13210***

Materials -0.07428 0.21275*** 0.48133***

Land*Land 0.06712*** -0.02383*** -0.02229***

Dairy Cows*Dairy Cows -0.19948*** -0.02587*** -0.02286**

Capital*Capital 0.03410*** 0.00934*** 0.01762***

Labour*Labour -0.00670 0.05856*** -0.02009

Materials*Materials 0.03602*** 0.00817** -0.00179

Time 0.06723*** -0.02787*** 0.02931***

Time*Time 0.00048*** 0.40501D-04 -0.00025***

Time*Land 0.00698*** -0.00699*** -0.00672***

Time*Dairy Cows -0.00272 0.01419*** 0.01416***

Time*Capital -0.00207** 0.00084*** 0.00148***

Time*Laour -0.00269 -0.00275*** 0.00185*

Time*Materials -0.00820*** -0.00039 -0.00636***

Sigma 0.26977*** 0.13515*** 0.16633***

Class Membership Vector

Constant -0.62047*** 2.00108*** ---

Index 1 - Structure 1.93741*** 1.10972*** ---

Index 2 - Environmental sustainability 0.17265** -0.18459*** ---

Index 3 – Innovation-cooperation-commercialisation 0.48414*** 0.45992*** ---

Index 4 - Technology -0.77831*** -0.30479*** ---

Index 5 - Diversity 3.09045*** 1.14252*** ---

Index 6 - Individual 0.21796*** -0.16739*** ---

Index 7 - Location -2.63357*** -1.21329*** ---

Index 8 - Household 10.6104*** 4.68727*** ---

Index 9 - Financial 1.64098*** 0.49141*** ---

Log-Likelihood Function 6437.74527

Inf.Cr.AIC / AIC/N -12721.5 -0.443

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.6.3. French dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 1990 to 2013

Total output Class 1 Class 2 Class 3

Land -0.79054*** 0.23145*** 0.14964

Dairy cows 1.63400*** 0.88034*** 0.64607***

Capital -0.06389 -0.09988*** -0.11375**

Labour 1.05159*** 0.42411*** 0.64229***

Materials -0.22975* -0.24246*** 0.18453*

Land*Land 0.12045*** -0.02486*** -0.01441***

Dairy cows*Dairy cows -0.11122*** 0.00810 -0.07694***

Capital*Capital 0.05196*** 0.00772*** 0.01904***

Labour*Labour 0.10602*** 0.06916*** -0.00537

Materials*Materials 0.08633*** 0.04578*** 0.01669**

Land*Dairy Cows 0.04807 0.01718 -0.01620

Land*Capital -0.04632** 0.00426 -0.01898***

Land*Labour -0.00619 0.00444 0.02992**

Land*Materials -0.14790*** -0.03355*** 0.01174

Dairy cows*Capital 0.03230 0.01138 0.03283***

Dairy cows*Labour -0.08993*** -0.08320*** -0.00306

Dairy cows*Materials 0.08142 0.02934* 0.12931***

Capital*Labour -0.06482*** -0.00037 -0.01845***

Capital*Materials -0.03376* -0.00366 -0.01138

Labour*Materials -0.03862 -0.03195*** -0.09335***

Time 0.03170*** -0.00450 0.00437

Time*Time 0.00039*** 0.00019*** -0.00022***

Time*Land 0.00599*** -0.00708*** -0.00651***

Time*Dairy cows -0.00838*** 0.01241*** 0.01073***

Time*Capital -0.00160 0.00042 0.00079

Time*Labour 0.00363 -0.00027 0.00178*

Time*Materials -0.00262* -0.00201*** -0.00225***

Number of observations / average group size 6031 / 6.1 14819 / 6.7 7861 / 5.1

R-squared / R-bar squared 0.8766 / 0.8747 0.9537 / 0.9534 0.9341 / 0.9332

Rho squared (residual variation) 0.4278 0.3016 0.3841

R-squared (within groups var) 0.8508 0.9433 0.9122

Hausman Test 55.64*** 45.50** 78.28***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

62 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.6.4. French dairy farms: Elasticities for classes

LCM panel translog reduced model, 1990 to 2013

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Land -0.09778*** 0.06715*** 0.05741***

Dairy cows 0.27706*** 0.41766*** 0.47125***

Capital 0.13899*** 0.10428*** 0.10811***

Labour 0.16348*** 0.09855*** 0.13664***

Materials 0.55495*** 0.37694*** 0.37497***

Returns-to-scale 1.03670*** 1.06459*** 1.14838***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.6.5. French dairy farms: Class identification - mean values indices

Mean values1, 1990 to 2013

Class 1: Most productive (21.0%)

Class 2: Medium productive (51.6%)

Class 3: Least productive (27.4%)

Index 1 - Structure -0.5018 0.1195 0.1596

Index 2 - Environmental sustainability -0.0958 -0.2565 0.5571

Index 3 – Innovation-cooperation-commercialisation 0.7326 -0.0210 -0.5225

Index 4 - Technology 0.4473 -0.0711 -0.2093

Index 5 - Diversity 1.0933 0.1324 -1.0883

Index 6 - Individual 0.3333 -0.1518 0.0305

Index 7 - Location 0.0622 -0.6259 1.1321

Index 8 - Household 0.6597 -0.2146 -0.1015

Index 9 - Financial 0.9372 -0.1553 -0.4263

Note: 1. At class means, scaled values.

Source: Estimations.

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6.2. French crop farms

Table A D.6.6. French crop farms: Descriptive statistics

Sample 1989 to 2016

Note: AWU: Annual Work Unit. 1. Values are per year.

Full sample (n = 50 785)

1st year (1990, n = 1 848)

Final year (2013, n = 1 651)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (EUR) 136 026 [0; 4 023 170]

93 110 [3 087; 624 223]

167 360 [5 618; 3 933 724]

Total output (EUR) 155 125 [0; 4 063 431]

105 917 [9 261; 697 551]

193 058 [8 985; 3 982 610]

Land (hectares) 122.1 [1.4; 794.5]

76.6 [3.0; 391.7]

135.9 [3.4; 746.9]

Capital depreciation (EUR) 25 287 [0; 335 675]

15 367 [155; 130 997]

19 562 [0; 219 373]

Materials (EUR) 762 [0; 293 588]

399 [0; 36 323]

891 [0; 252 287]

Chemicals cost (EUR) 37 376 [0; 389 192]

20 312 [1 061; 115 070]

55 652 [0; 356 782]

Hired labour (AWU) 0.4263 [0.1606; 10.2278]

0.3103 [0.1606; 3.4679]

0.4228 [0.0235; 9.7065]

Family labour (AWU) 1.2957 [0.6194; 31.6039]

1.1966 [0.6194; 13.3747]

1.3767 [0.0765; 31.6039]

Organic (0-1 probability) 0.01189 [0; 1]

0 [0; 0]

0.04119 [0; 1]

Total assets (EUR) 33 4915 [0; 6 344 058]

20 1721 [6 818; 1 648 816]

44 9985 [ 54; 6 344 058]

Age (years) 53 [17; 116]

43 [22; 89]

46 [21; 116]

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Table A D.6.7. French crop farms: Latent class estimates

LCM panel translog reduced model, 1990 to 2013

Total output Class 1 Class 2 Class 3 Class 4

Constant 9.25728*** 6.52442*** 5.87275*** 11.7230***

Land 0.24447*** 0.67033*** 0.01207 0.83723***

Capital -0.07739*** -0.03751*** 0.22864*** -0.42793***

Labour 0.17684*** 0.38915*** 0.03698 -0.30566***

Materials -0.33089*** -0.15402*** 0.23765*** -0.36486***

Land*Land -0.02911*** -0.06189*** 0.03258*** -0.01649***

Capital*Capital 0.01216*** 0.00686*** 0.00567*** 0.01148***

Labour*Labour 0.06020*** -0.26030*** 0.05172*** 0.11930***

Materials*Materials 0.04816*** 0.04551*** 0.00213 0.03450***

Time 0.06358*** 0.00336 0.07015*** -0.15013***

Time*Time 0.00254*** 0.00268*** -0.00023* 0.00239***

Time*Land 0.01132*** -0.00088 -0.00877*** -0.01421***

Time*Capital -0.00148*** 0.00044* -0.01020*** 0.01191***

Time*Laour 0.00568*** -0.00294** 0.01112*** 0.01834***

Time*Materials -0.01581*** -0.00825*** 0.00644*** 0.00180

Sigma 0.24328*** 0.26806*** 0.32755*** 0.23322***

Class Membership Vector

Constant 3.10576*** 0.76805*** -2.34586*** ---

Index 1 - Structure 2.58326*** 2.30462*** 3.28560*** ---

Index 2 - Environmental sustainability 0.15484*** 0.01052 -7.30751*** ---

Index 3 – Innovation-cooperation-commercialisation 0.41057*** -1.60584*** 1.12813*** ---

Index 4 - Technology 0.15402 -2.84942*** 6.77061*** ---

Index 5 - Diversity -0.10282*** -0.41463*** 1.06442*** ---

Index 6 - Individual -1.48526*** -1.70582*** -1.74142*** ---

Index 7 - Location -0.28668*** 0.19165*** -0.71111*** ---

Index 8 - Household -0.23926*** 0.08944** 0.03926 ---

Index 9 - Financial 2.25877*** 1.24117*** 1.69392*** ---

Log-Likelihood Function -9010.97605

Inf.Cr.AIC / AIC/N 18210.0 / 0.359

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.6.8. French crop farms: Full production function estimates

Fixed-effects panel translog model per class, 1990 to 2013

Total output Class 1 Class 2 Class 3 Class 4

Land 0.15784*** 0.71410*** 0.01192 0.44514***

Capital -0.01620 0.01875 0.31299*** -0.43826***

Labour 0.56149*** 1.10179*** 0.24881** 0.21694**

Materials -0.14018*** -0.09189*** 0.28978*** -0.25785***

Land*Land 0.02159*** -0.08418*** 0.06689*** 0.00758

Capital*Capital 0.00936*** 0.00253*** 0.00839*** 0.00981***

Labour*Labour 0.11198*** -0.16741*** 0.08163*** 0.15203***

Materials*Materials 0.04675*** 0.04056*** 0.00783** 0.02995***

Land*Capital 0.00639*** 0.00218 -0.00817** 0.01231***

Land*Labour -0.11322*** 0.11237*** -0.11648*** -0.12125***

Land*Materials -0.02783*** 0.01684* -0.00232 0.01293

Capital*Labour 0.00299** 0.00684 0.02915*** 0.00084

Capital*Materials -0.00796*** -0.00187 -0.01694*** -0.00707***

Labour*Materials 0.00075 -0.14695*** -0.00941 0.01469

Time 0.03574*** 0.01431*** 0.07567*** -0.15419***

Time*Time 0.00279*** 0.00292*** -0.37499D-04 0.00257***

Time*Land 0.01333*** -0.00035 -0.00822*** -0.00910***

Time*Capital -0.00062** 0.00025 -0.00891*** 0.01332***

Time*Labour 0.00679*** -0.27939D-04 0.01045*** 0.01299***

Time*Materials -0.01568*** -0.01045*** 0.00430*** -0.00170

Number of observations / average group size 28 114 / 5.1 12 476 / 5.7 4320 / 6.1 5875 / 5.9

R-squared / R-bar squared 0.8662 / 0.8655 0.8296 / 0.8277 0.8838 / 0.8807 0.8884 / 0.8866

Rho squared (residual variation) 0.4201 0.4684 0.5001 0.3723

R-squared (within groups var) 0.8484 0.7986 0.8343 0.8574

Hausman Test 94.67*** 74.35*** 62.02*** 69.68***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.6.9. French crop farms: Elasticities for classes

LCM panel translog reduced model, 1990 to 2013

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3 Class 4

Land 0.12754*** 0.13229*** 0.14806*** 0.33978***

Capital 0.13671*** 0.08667*** 0.21802*** -0.03932***

Labour 0.30879*** 0.27994*** 0.25229*** 0.24037***

Materials 0.45103*** 0.64898*** 0.35401*** 0.42303***

Returns-to-scale 1.02408*** 1.14788*** 0.97238*** 0.96387***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

66 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.6.10. French crop farms: Class identification - mean values indices

Mean values1, 1989 to 2016

Class 1: Medium productive (55.4%)

Class 2: Least productive (24.6%)

Class 3: Medium productive (8.5%)

Class 4: Most productive (11.6%)

Index 1 - Structure -0.2063 0.5520 0.6725 -0.6792

Index 2 - Environmental sustainability 0.3089 -0.4800 -1.7127 0.8004

Index 3 – Innovation-cooperation-commercialisation

0.3190 -0.9968 0.0315 0.5670

Index 4 - Technology -0.1115 -0.1970 1.7380 -0.3260

Index 5 - Diversity -0.0213 -0.3091 1.1205 -0.0659

Index 6 - Individual -0.1584 -0.2213 -0.3049 1.4519

Index 7 - Location -0.2174 0.5814 -0.1562 -0.0795

Index 8 - Household -0.0584 0.0550 -0.1499 0.2729

Index 9 - Financial 0.2867 -0.4807 -0.1014 -0.2765

Note: 1. At class means, scaled values.

Source: Estimations.

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7. Hungary

7.1. Hungarian crop farms

Table A D.7.1. Hungarian crop farms: Descriptive statistics

Sample 2001 to 2014

Note: 1- Values are per year. 2- Gross value of production for output as supplied by national agency.

Full sample (n = 14 128)

1st year (2001, n = 942)

Final year (2014, n = 1 006)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable 1

Crop output (EUR) 2 104 328 [140; 12 156 212]

46 264 [613; 1 205 972]

381 160 [376; 12 156 212]

Land (ha) 238 [0; 8 796]

214 [2; 5 736]

225 [3; 4 608]

Capital depreciation (EUR) 5 531 [0; 634 458]

2 605 [0; 82 340]

6 716 [0; 203 782]

Chemicals Cost (EUR) 13 208 [0; 1 306 577]

5 474 [0; 116 495]

49 125 [0; 1 306 577]

Materials (EUR) 16 211 [11; 12 474 445]

9 252 [11; 283 371]

53 895 [509; 1 282 527]

Hired labour (hour) 7 520 [0; 705 414]

6 795 [0; 323 901]

6 939 [0; 279 423]

Family labour (hour) 1 720 [0; 12 100]

1 468 [0; 9 000]

1 823 [0; 11 086]

Organic (0-1 probability) 0.1966 [0; 1]

0.0138 [0; 1]

0.0109 [0; 1]

Total assets (EUR) 69 844 [0; 7 723 231]

24 395 [0; 799 376]

103 386 [0; 3 608 561]

Age (years) 52.4 [19; 99]

48.8 [21; 88]

56.5 [21; 89]

Less-Favoured-Area (0-1 probability)

0.0223 [0; 1]

0 [0; 0]

0.0626 [0; 1]

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Table A D.7.2. Hungarian crop farms: Latent class estimates

LCM panel translog reduced model, 2001 to 2014

Total crop output Class 1 Class 2 Class 3

constant 0.6515*** 1.9236*** 4.0176***

Land -0.0635*** -0.0453 0.7925***

Capital -0.0006 -0.0198 -0.0471***

Chemicals -0.2484*** 0.7313*** 0.2847***

Materials 1.5565*** 0.7313*** 0.2847***

Labour 0.1029*** 0.2895*** 0.0259

Land*Land 0.0239*** 0.0186*** -0.0234***

Capital*Capital 0.0058*** 0.0048*** 0.0066***

Chemicals*Chemicals 0.0359*** 0.0245*** 0.0158***

Materials*Materials -0.0707*** -0.0273*** -0.0067***

Labour*Labour -0.0034 -0.0109** -0.667e-04

Time -0.0401*** -0.0951*** -0.0536***

Time*Time 0.0027*** 0.0032*** 0.0019***

Time*Land 0.0051** -0.0031 -0.0284***

Time*Capital -0.0063*** -0.601e-04 0.0015**

Time*Chemicals -0.0062*** -0.0059* 0.0103***

Time*Materials 0.0116*** 0.0202*** 0.0168***

Time*Labour 0.0028 -0.0109** -0.0054***

Sigma 0.3098*** 0.5193*** 0.2839***

Class Membership Vector

Constant -1.3229*** -1.3026*** ---

Index 1 - Structure 0.0004*** 0.0002* ---

Index 2 - Environmental sustainability -0.0028** -0.0003 ---

Index 3 – Innovation-cooperation-commercialisation -0.0026 -0.0289* ---

Index 4 - Technology 0.0023 0.0089*** ---

Index 5 - Diversity 1.1369*** 1.0216*** ---

Index 6 - Individual -0.0156 0.0375** ---

Index 7 - Location -0.0659 -0.9083* ---

Log-Likelihood Function -5737.618

Inf.Cr.AIC / AIC/N 11621 / 0.823

Note: 1- *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.7.3. Hungarian crop farms: Full production function estimates

Fixed-effects panel translog model per class, 2001 to 2014

Total crop output Class 1 Class 2 Class 3

Land 0.3941*** 0.3035** 0.6251***

Capital -0.0665 0.0627 -0.0246

Chemicals -0.2335** 0.2665** 0.0735

Materials 0.7856*** 0.3678** 0.0683

Labour 0.1178 0.0658 0.1201*

Land*Land 0.0738*** 0.0449*** 0.0118

Capital*Capital 0.0026 0.0075* 0.0033**

Chemicals*Chemicals 0.0353*** 0.0259*** 0.0197***

Materials*Materials -0.0015 0.0179 0.0506***

Labour*Labour 0.0221*** 0.0395*** 0.0039

Land*Capital -0.0187*** -0.0299* -0.0119*

Land*Chemicals -0.0064 0.0323 0.0086

Land*Materials -0.0424** -0.0239 -0.0427**

Land*Labour -0.0237* -0.0362 0.0247*

Capital*Chemicals 0.0059 0.0129 -0.0069

Capital*Materials 0.0055 -0.0026 0.0173***

Capital*Labour 0.0078 -0.0105 -0.0043

Chemicals*Materials -0.0099 -0.0409* -0.0381***

Chemicals*Labour -0.0023 -0.0288 0.0201

Materials*Labour -0.0321* -0.0132 -0.0466***

Time -0.0192 -0.1904*** -0.0484***

Time*Time 0.0027*** 0.0036*** 0.0014***

Time*Land -0.0032 -0.0167*** -0.0293***

Time*Capital -0.0043*** -0.0009 0.0006

Time*Chemicals -0.0013 0.0028 0.0084***

Time*Materials 0.0121*** 0.0284*** 0.0179***

Time*Labour -0.0016 -0.0016 -0.0028

Number of observations / average group size 3933 / 4.71 3057 / 4.41 7138 / 4.47

R-squared / R-bar squared 0.9608 / 0.9498 0.9170 / 0.8915 0.9774 / 0.9708

Rho squared (residual variation) 0.4842 0.4939 0.4294

R-squared (within groups var) 0.7774 0.5620 0.7949

Hausman Test 113.04*** 51.44*** 91.66***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

70 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.7.4. Hungarian crop farms: Elasticities for classes

LCM panel translog reduced model, 2001 to 2014

Wald procedure based on delta method at sample means

Total crop output Class 1 Class 2 Class 3

Land 0.0778*** 0.0851*** 0.0754***

Capital 0.0072 0.0114** 0.0058

Chemicals 0.0166*** 0.0181*** 0.0378***

Materials 0.8759*** 0.9043*** 0.8453***

Labour 0.1591*** 0.1569*** 0.1569***

Returns-to-scale 1.1366*** 1.1757*** 1.1212***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.7.5. Hungarian crop farms: Class identification - mean values indices

Mean values1

Class 1: Most productive (28%)

Class 2: Least productive (22%)

Class 3: Medium productive (50%)

Index 1 - Structure 1.5599 0.1918 -0.9417

Index 2 - Environmental sustainability -2.5095 -0.0209 1.3831

Index 3 – Innovation-cooperation-commercialisation -0.9220 -0.6861 0.8020

Index 4 - Technology 0.2543 1.1934 -0.6512

Index 5 - Diversity 0.6970 0.6940 0.6380

Index 6 - Individual -0.0450 1.5820 0.3370

Index 7 - Location 0.0146 -0.0160 -0.0011

Note: 1. At class means, scaled values.

Source: Estimations.

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8. Ireland

8.1. Irish dairy farms

Table A D.8.1. Irish dairy farms: Descriptive statistics

Sample 2010 to 2018

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 2 792)

1st year (2010, n = 225)

Final year (2018, n = 311)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 122 259 [12 817; 500 435]

139 377 [10 244; 513 060]

231 967 [13 125; 892 566]

Total output (EUR) 137 504 [14 373; 521 384]

163 225 [13 694; 569 462]

251 534 [14 388; 922 016]

Dairy cows (number) 49.4 [1.5; 149]

65.6 [7; 224]

84.1 [10; 291.5]

Capital depreciation (EUR) 11 022 [0; 50 431]

13 795 [0; 59 402.47]

20 562 [0; 84 977]

Fodder cost (EUR) 45 430 [2 716; 246 930]

10 425 [ 428; 44 296]

16 984 [0; 65 919]

Materials (EUR) 8 909 [835; 36 128]

10 961 [1 399; 52 333]

15 587 [1 614; 69 064]

Hired labour (AWU) 0.0674 [0.0078; 11.4654]

0.0858 [0.0287; 11.4654]

0.1205 [0.0384; 0.3861]

Family labour (AWU) 1.3932 [0.1622; 212.5346]

1.5912 [0.5313; 212.5346]

1.6374 [0.5216; 5.2439]

Land (ha) 49.5 [8.3; 137.6]

61.6 [8.3; 181.8]

71.1 [8.3; 226.3]

Stocking density (LU per ha) 1.75 [0.49; 3.90]

1.72 [0.49; 3.10]

1.97 [0.60; 3.90]

Chemicals cost (EUR) 10 091 [0; 43 531]

10 425 [428; 44 296]

16 984 [0; 65 919]

Organic (0-1 probability) 0.111 [0; 1]

0 [0; 0]

0.123 [0; 1]

Total assets (EUR) 992 392 [131 239; 3 569 465]

1 261 824 [131 519; 3 546 527]

156 8211 [168 857; 5 768 208]

Age (years) 53.3 [18; 82]

49.5 [18; 76]

53.0 [23; 76]

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Table A D.8.2. Irish dairy farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2018

Total output Class 1 Class 2 Class 3

Constant 6.11099*** 2.84268 -0.39910

Land 0.36366*** 0.34778 0.42146***

Dairy cows -0.38831*** -0.12801 -0.66565***

Capital -0.00589 -0.07686 -0.05077**

Labour 0.23000*** 0.40959** 0.01058

Materials 0.48182** 1.09205 1.58995***

Land*Land -0.03036** -0.00592 -0.03583**

Dairy cows*Dairy cows 0.08293*** 0.07532 0.13408***

Capital*Capital 0.00215** 0.00969 0.00442***

Labour*Labour -0.06550*** -0.14788 -0.03183

Materials*Materials -0.00349 -0.04539 -0.04775***

Time -0.07108* -0.39531*** 0.11204*

Time*Time -0.00054 -0.00281 -0.00076

Time*Land 0.00300 -0.06301*** -0.00784

Time*Dairy cows -0.00915 0.01018 0.01010

Time*Capital -0.00028 -0.01481 0.00824***

Time*Labour -0.00627 -0.02779 -0.00305

Time*Materials 0.00978* 0.07090*** -0.01726**

Sigma 0.12208*** 0.21460*** 0.14116***

Class Membership Vector

Constant 0.20947 -6.20598***

Index 1 - Structure -0.37888 -7.81174***

Index 2 - Environmental sustainability 0.95364*** -1.38534***

Index 3 – Innovation-cooperation-commercialisation 2.92227*** -2.07044***

Index 4 - Technology -1.73900*** -0.16320

Index 5 - Diversity -0.36929 2.76504***

Index 6 - Individual -1.73184*** 0.41169

Index 7 - Location -2.50310*** 0.05743

Index 8 - Household 0.62951*** -0.23566

Index 9 - Financial 1.00642*** -3.48956***

Log-Likelihood Function 1484.26656

Inf.Cr.AIC / AIC/N -2814.5 / -1.008

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.3. Irish dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2018

Total output Class 1 Class 2 Class 3

Land 0.90962* 1.42579 -0.58374

Dairy Cows 0.29325 4.67832** 0.95185*

Capital 0.09438 -2.19817* -0.30232

Labour 0.12230 -0.42045 0.56362

Materials -0.60449 -3.33119* -0.03965

Land*Land 0.03452 -0.15427 0.23895***

Dairy Cows*Dairy Cows 0.06075*** 0.33023* 0.09889***

Capital*Capital 0.00744*** 0.04011* -0.00091

Labour*Labour -0.03711 0.00626 0.14911**

Materials*Materials 0.06688* 0.19939 0.02960

Land*Dairy Cows 0.00907 0.18961 -0.19093***

Land*Capital 0.02002 -0.04894 0.02701

Land*Labour -0.11625** -0.06328 -0.05841

Land*Materials -0.00352 0.05228 -0.06414

Dairy Cows*Capital -0.05800 -0.09988 -0.00964

Dairy Cows*Labour -0.00508 -0.63605** -0.05857

Dairy Cows*Materials 0.00949 0.18034 -0.04200

Capital*Labour -0.00631 0.20501 0.02360

Capital*Materials -0.02349 -0.28667 -0.01265

Labour*Materials 0.01360 0.20497 -0.01067

Time -0.01788 -0.19822 0.00516

Time*Time 0.74152D-05 -0.00203 -0.00144**

Time*Land 0.00559 0.01938 0.00379

Time*Dairy Cows 0.44201D-05 -0.01372 -0.00146

Time*Capital 0.00796*** -0.02234** 0.00637***

Time*Labour -0.00155 -0.03880** 0.00353

Time*Materials -0.00613 0.03924 -0.00455

Number of observations / average group size 1429 / 5.25 220 / 2.16 1143 / 4.20

R-squared / R-bar squared 0.9737 / 0.9668 0.9908 / 0.9779 0.9765 / 0.9682

Rho squared (residual variation) 0.7507 0.9445 0.8313

R-squared (within groups var) 0.7201 0.6362 0.5563

Hausman Test 102.73*** 38.81* 120.70***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

74 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.4. Irish dairy farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.11815*** 0.00915 0.10943***

Dairy cows 0.29670*** 0.51616*** 0.40036***

Capital 0.03407*** 0.02464 0.07057***

Labour 0.12343*** 0.16154** 0.02562

Materials 0.45206*** 0.42782*** 0.45304***

Returns-to-scale 1.02441*** 1.13931*** 1.05903***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.8.5. Irish dairy farms: Class identification - mean values indices

Mean values1, 2010 to 2018

Class 1: Most productive (51.2%)

Class 2: Least productive (7.9%)

Class 3: Medium productive (40.9%)

Index 1 - Structure -0.3613 -0.2116 0.4924

Index 2 - Environmental sustainability -0.2359 -0.2308 0.3394

Index 3 – Innovation-cooperation-commercialisation 0.9107 -0.9886 -0.9482

Index 4 - Technology 0.0459 -0.6824 0.0739

Index 5 - Diversity -0.0172 0.1109 0.0002

Index 6 - Individual -0.2656 0.4894 0.2378

Index 7 - Location -0.6795 0.8257 0.6905

Index 8 - Household -0.1086 0.2267 0.0921

Index 9 - Financial 0.3499 -0.3880 -0.3628

Note: 1. At class means, scaled values.

Source: Estimations.

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8.2. Irish crop farms

Table A D.8.6. Irish crop farms: Descriptive statistics

Sample 2010 to 2018

Note: AWU: Annual Work Unit. 1. Values are per year.

Full sample (n = 749)

1st year (2010, n = 97)

Final year (2018, n = 67)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (EUR) 81 837 [2 400; 1 115 282]

84 803 [2 400; 975 353]

84 295 [4 865; 458 096]

Total output (EUR) 144 548 [11 875; 1 397 538]

143 615 [18 987; 975 353]

143 283 [17 729; 648 165]

Land (ha) 83.7 [9.7; 738.5]

87.5 [10.9; 437.5]

76.4 [10.9; 244.8]

Capital depreciation (EUR) 12 849 [0; 121 311]

12 287 [0; 118 234]

13 197 [0; 83 716]

Materials (EUR) 5 194 [270; 34 096]

5 113 [945; 29 096]

5 214 [380; 14 369]

Chemicals cost (EUR) 27 673 [0; 398 346]

24 165 [0; 243 605]

24 092 [0; 119 414]

Hired labour (AWU) 0.1699 [0.0013; 0.9129]

0.1518 [0.0013; 0.9129]

0.2869 [0.0116; 0.8957]

Family labour (AWU) 1.1195 [0.0087; 6.0171]

1.1947 [0.0087; 6.0171]

0.9461 [0.0384; 2.9543]

Organic (0-1 probability) 0.119 [0; 1]

0.111 [0; 1]

0.144 [0; 1]

Total assets (EUR) 1 563 942 [0; 7 947 237.3]

1 555 967 [200 000; 7 947 237]

1 493 647 [0; 4 891 323.2]

Age (years) 58 [18; 85]

53 [18; 78]

59 [29; 85]

76 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.7. Irish crop farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2018

Total output Class 1 Class 2 Class 3

constant 13.6229*** 6.45735*** 11.5147***

Land 0.07281 0.29865 0.40351**

Capital -1.24204*** -0.02896 0.05966

Labour -0.02376 -0.07535 -0.04244

Chemicals -0.08932 -0.53751*** -0.41493***

Material 0.30370 0.69701* -0.65538**

Land*Land 0.01224 -0.00121 0.00421

Capital*Capital 0.08708*** 0.00477*** 0.00067

Labour*Labour 0.03015 -0.00485 -0.06406**

Chemicals*Chemicals 0.01137** 0.05488*** 0.04590***

Material*Material -0.01583 -0.03069 0.04291**

Time -0.00288 0.04599 0.04991

Time*Time 0.00136 0.00726*** 0.00720***

Time*Land 0.01743 0.00584 -0.00769

Time*Capital -0.01720* -0.00073 -0.00724**

Time*Labour 0.00036 0.01437** -0.00171

Time*Chemicals -0.00188 0.00807 -0.00093

Time*Material 0.01110 -0.02683** -0.00237

Sigma 0.14864*** 0.14673*** 0.10067***

Class Membership Vector

Constant -0.63170 -1.78672*** ---

Index 1 - Structure 0.91227* 1.62607*** ---

Index 2 - Environmental sustainability 0.79523** -2.31788*** ---

Index 3 – Innovation-cooperation-commercialisation 0.87485** 0.36841 ---

Index 4 - Technology 0.19229 0.37484 ---

Index 5 - Diversity -0.10166 2.07052*** ---

Index 6 - Individual -0.05441 0.48063* ---

Index 7 - Location 0.86586*** 0.67839** ---

Index 8 - Household -0.04514 0.67113** ---

Index 9 - Financial 1.91795*** -5.53917*** ---

Log-Likelihood Function 305.93374

Inf.Cr.AIC / AIC/N -457.9 / -0.611

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.8. Irish crop farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2018

Total output Class 1 Class 2 Class 3

Land 0.22869 -0.08439 -2.47434**

Capital -0.72858 -0.06884 -0.11378

Labour -1.27454 -0.07673 1.49229***

Chemicals -1.28782 1.20839* -0.50346

Material 1.39346 -0.90149 0.56284

Land*Land 0.22283 -0.04819 -0.00389

Capital*Capital -0.01946 0.01033 -0.04580**

Labour*Labour -0.00681 0.00164 -0.01245

Chemicals*Chemicals -0.16615 -0.00643 -0.03951

Material*Material -0.10955 0.03154 -0.03693

Land*Capital 0.04215 -0.11339 -0.09993

Land*Labour -0.05682 -0.04708* -0.02681

Land*Chemicals -0.14634 0.09745 0.34029**

Land*Material -0.16495 -0.07485 0.09447

Capital*Labour 0.00783 0.00198 0.02826

Capital*Chemicals 0.04672 0.04257 0.04669

Capital*Material -0.07409 0.02980 -0.00583

Labour*Chemicals 0.16732 0.02498 -0.11362**

Labour*Material 0.04574 0.00354 0.04642

Chemicals*Material 0.20176* -0.10274 -0.02400

Time -0.09186 -0.11408 0.15778**

Time*Time 0.00213 0.00166 0.00148

Time*Land 0.01545 -0.01700 0.00844

Time*Capital 0.00435 0.00593 0.00339

Time*Labour -0.00388 -0.00132 -0.00182

Time*Chemicals -0.00860 -0.00166 -0.01294

Time*Material 0.00327 0.01624* -0.01948

Number of observations / average group size 249 / 4.02 255 / 3.49 245 / 3.10

R-squared / R-bar squared 0.9808 / 0.9702 0.9871 / 0.9788 0.9867 / 0.9767

Rho squared (residual variation) 0.8631 0.9526 0.9388

R-squared (within groups var) 0.5419 0.5821 0.4839

Hausman Test 37.47* 37.39* 41.38**

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

78 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.9. Irish crop farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2018

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Land 0.26851*** 0.31785*** 0.40435***

Capital 0.69730*** 0.02119 0.03204

Labour 0.56769 0.07509 1.15345***

Chemicals 0.08785 0.55654*** -0.40557***

Material 0.00802 0.03492 0.21804**

Returns-to-scale 1.62936 1.00559*** 1.40232***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.8.10. Irish crop farms: Class identification - mean values indices

Mean values1, 2010 to 2018

Class 1: Most productive (33.2%)

Class 2: Least productive (34.0%)

Class 3: Medium productive (32.7%)

Index 1 - Structure -0.2855 0.2733 0.0058

Index 2 - Environmental sustainability -0.1736 -0.3055 0.4944

Index 3 – Innovation-cooperation-commercialisation 0.1232 -0.0797 -0.0422

Index 4 - Technology 0.5312 -0.2474 -0.2824

Index 5 - Diversity -0.3638 0.8674 -0.5331

Index 6 - Individual -0.4330 0.4983 -0.0785

Index 7 - Location 0.4585 0.0525 -0.5207

Index 8 - Household -0.6109 0.6999 -0.1077

Index 9 - Financial 0.6632 -0.4108 -0.2464

Note: 1. At class means, scaled values.

Source: Estimations.

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8.3. Irish cattle rearing farms

Table A.B.8.11. Irish cattle rearing farms: Descriptive statistics

Sample 2010 to 2018

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 1 489)

1st year (2010, n = 164)

Final year (2018, n = 164)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (EUR) 27 064 [0; 254 285]

19 509 [0; 176 744]

28 776 [1 464; 254 285]

Total output (EUR) 44 857 [5 528; 381 196]

39 920 [7 586; 306 647]

44 714 [5 915; 321 026]

Land (ha) 45.3 [8.5; 589.2]

47.1 [11.1; 242.8]

42.0 [11.5; 214]

Livestock Units (number) 43.97 [9.15; 389.82]

43.09 [13.49; 389.82]

43.49 [11.13; 373.47]

Capital depreciation (EUR) 4 655 [0; 47 851]

4 602 [0; 33 611]

5 228 [0; 47 851]

Hired labour (AWU) 0.1435 [0.0001; 0.3869]

0.1502 [0.0239; 0.3669]

0.1279 [0.0359; 0.2862]

Family labour (AWU) 0.8949 [0.0009; 2.4131]

0.9181 [0.1461; 2.2431]

0.8688 [0.2441; 1.9438]

Materials (EUR) 2 960 [48; 24 803]

2 666 [110; 24 803]

3 221 [202; 14 623]

Stocking density (LU per ha) 1.03 [0.05; 3.85]

0.97 [0.20; 2.40]

1.09 [0.02; 2.19]

Organic (0-1 probability) 0.115 [0; 1]

0.113 [0; 1]

0.113 [0; 1]

Total assets (EUR) 709 173 [21 850; 6 825 339]

733 086 [101 071; 6 805 658]

668 022 [100 312; 3 832 397]

Age (years) 55 [18; 86]

52 [18; 82]

58 [30; 86]

80 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.12. Irish cattle rearing farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2018

Total output Class 1 Class 2 Class 3

Constant 5.75547*** 5.67330 12.9448***

Land 1.14295*** -0.73241 0.28561***

Livestock 0.04675 1.82019** 0.64032***

Capital -0.41828*** -0.06402 -0.07672***

Labour -0.04780 0.17938 0.02040

Material 0.27813 -0.11672 -1.34931***

Land*Land -0.10378** 0.16937 -0.02334**

Livestock*Livestock 0.04236 -0.22530** -0.00440

Capital*Capital 0.02761*** 0.02240*** 0.00788***

Labour*Labour 0.05845 -0.08102 -0.02491

Material*Material 0.00186 0.01469 0.08017***

Time 0.53960*** -0.15256 -0.01233

Time*Time -0.00285 -0.02068*** -0.00143

Time*Land -0.03937*** -0.03195 0.00272

Time*Livestock 0.06814*** -0.00270 -0.00533

Time*Capital 0.00567 -0.00883 0.00245

Time*Labour 0.02052 -0.03537 -0.00853

Time*Material -0.06683*** 0.05895* 0.00399

Sigma 0.15997*** 0.28909*** 0.17970***

Class Membership Vector

Constant -1.87983*** -3.28738*** ---

Index 1 – Structure -0.16433 1.04967** ---

Index 2 – Environmental sustainability 2.16375*** -0.67396** ---

Index 3 – Innovation-cooperation-commercialisation 0.93395*** -0.36004 ---

Index 4 – Technology -0.76858*** -0.80353** ---

Index 5 - Diversity 0.10481 -0.78114*** ---

Index 6 - Individual -0.06581 0.85035*** ---

Index 7 - Location -0.32005* 0.14516 ---

Index 8 - Household -0.84966*** 0.43941 ---

Index 9 - Financial 1.15679** 4.27208*** ---

Log-Likelihood Function 251.30958

Inf.Cr.AIC / AIC/N -348.6 / -0.234

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.13. Irish cattle rearing farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2018

Total output Class 1 Class 2 Class 3

Land -0.55319 -0.58056 -1.04288*

Livestock 0.59503 1.50675** 1.53311*

Capital -0.17807 0.26154** 0.36397***

Labour 0.10319 -0.44832 0.38964

Material 0.45665 -1.00148* -1.71388**

Land*Land 0.23219 0.02235 0.03229

Livestock*Livestock 0.01869 -0.18119** -0.01910

Capital*Capital -0.00308 0.00636* -0.00095

Labour*Labour 0.08065 0.02903 0.01850

Material*Material -0.02318 0.07067 0.11835**

Land*Livestock -0.21159 0.01774 -0.06546

Land*Capital -0.13646 -0.01836 0.01692

Land*Labour 0.06799 0.07995 0.11097

Land*Material -0.18713 0.05620 0.06520

Livestock*Capital 0.11734 0.04939 0.04679

Livestock*Labour -0.06908 -0.04685 -0.11098

Livestock*Material 0.07697 -0.04994 0.02825

Capital*Labour 0.02778 -0.04876*** -0.06160***

Capital*Material 0.11262 -0.03336 -0.03152

Labour*Material -0.07370 0.07907 -0.04647

Time 0.19427** -0.03633 -0.06979

Time*Time -0.00302* -0.00329*** -0.00171*

Time*Land -0.01136 -0.00598 -0.00029

Time*Livestock 0.03536* 0.01272 0.00077

Time*Capital 0.00916 0.00400** 0.00508***

Time*Labour 0.01462 -0.00255 -0.00044

Time*Material -0.03326** 0.00410 0.00698

Number of observations / average group size 397 / 2.48 137 / 3.42 955 / 3.28

R-squared / R-bar squared 0.9818 / 0.9657 0.9547 / 0.9338 0.9537 / 0.9306

Rho squared (residual variation) 0.9115 0.8514 0.7603

R-squared (within groups var) 0.2364 0.3171 0.3672

Hausman Test 57.69*** 115.47*** 75.09***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

82 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.14. Irish cattle rearing farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.17830*** 0.37336*** 0.13539***

Livestock 0.61830*** 0.10256 0.58101***

Capital 0.05883*** 0.23136*** 0.05965***

Labour 0.03311 0.02549 0.02108

Material 0.06554** 0.47801*** 0.21333***

Returns-to-scale 0.95408*** 1.21078*** 1.01046***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.8.15. Irish cattle rearing farms: Class identification - mean values indices

Mean values1, 2010 to 2018

Class 1: Most productive (26.7%)

Class 2: Medium productive (9.2%)

Class 3: Least productive (64.1%)

Index 1 - Structure -0.3830 -0.2295 0.1922

Index 2 - Environmental sustainability 0.1276 -0.0663 -0.0435

Index 3 – Innovation-cooperation-commercialisation 0.7113 0.2752 -0.3352

Index 4 - Technology 0.1276 -0.1853 -0.0265

Index 5 - Diversity 0.7803 0.0464 -0.3310

Index 6 - Individual -0.3063 0.6336 0.0364

Index 7 - Location -0.1003 -0.5390 0.1190

Index 8 - Household -0.5832 0.5916 0.1576

Index 9 - Financial 0.0456 0.1174 -0.0358

Note: 1. At class means, scaled values.

Source: Estimations.

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8.4. Irish cattle other farms

Table A.B.8.16. Irish cattle other farms: Descriptive statistics

Sample 2010 to 2018

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 1 977)

1st year (2010, n = 235)

Final year (2018, n = 214)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (EUR) 43 975 [0; 534 913]

29 744 [0; 408 102]

50 754 [0; 509 975]

Total output (EUR) 69 770 [62 07; 659 560]

55 911 [7 987; 556 700]

76 531 [11 338; 630 976]

Land (ha) 54.8 [6.9; 242.8]

53.8 [11.4; 242.8]

56.6 [11.4; 206]

Livestock Units (number) 68.3 [2.4; 456.1]

63.3 [13.1; 351.7]

72.4 [9.5; 456.1]

Capital depreciation (EUR) 6 167 [0; 52 303]

5 846 [0; 52 303]

7 207 [0; 50 146.02]

Hired labour (AWU) 0.1238 [0.0033; 0.3435]

0.1239 [0.0181; 0.3319]

0.1089 [0.0189; 0.3159]

Family labour (AWU) 1.0157 [0.0267; 2.8165]

1.0416 [0.1519; 2.7881]

0.9785 [0.1711; 2.8441]

Materials (EUR) 3 887 [0; 30 485]

3 437 [229; 13 740]

4 373 [235; 23 377]

Stocking density (LU per ha) 1.77 [0.03; 25.06]

1.68 [0.10; 19.19]

1.89 [0.13; 25.06]

Organic (0-1 probability) 0.028 [0; 1]

0.009 [0; 1]

0.032 [0; 1]

Total assets (EUR) 1 046 032 [30 573; 7 115 927]

1 003 669 [36 296; 4 453 496]

1 106 746 [108 607; 7 109 135]

Age (years) 57 [18; 86]

55 [19; 83]

59 [28; 86]

84 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.17. Irish cattle other farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2018

Total output Class 1 Class 2 Class 3

constant 8.92558*** 14.6645*** 18.8410***

Land -0.05217 0.35501 -0.17511

Livestock 0.30033** 0.37869 -0.02883

Capital -0.09342*** 0.05759 0.18121

Labour -0.07958* -0.16520** 0.12464**

Material -0.29859* -1.89314*** -1.97641***

Land*Land 0.01595 -0.06123* 0.01980

Livestock*Livestock 0.00231 -0.00497 0.02288

Capital*Capital 0.01047*** 0.00383 -0.01150

Labour*Labour -0.01407 -0.09087*** -0.05022*

Material*Material 0.03677*** 0.12060*** 0.11542***

Time 0.15656*** 0.01092 0.09989

Time*Time -0.00195 -0.00457** -0.00268

Time*Land -0.00252 0.02088** 0.00648

Time*Livestock 0.01203 0.01488 0.02803***

Time*Capital -0.00320 -0.01387*** 0.00140

Time*Labour 0.00083 0.01793 0.00034

Time*Material -0.01438* 0.00400 -0.02220**

Sigma 0.19052*** 0.24069*** 0.17045***

Class Membership Vector

Constant 2.01772*** -1.80778*** ---

Index 1 - Structure -0.20756 -0.06174 ---

Index 2 - Environmental sustainability -0.00351 1.66802*** ---

Index 3 – Innovation-cooperation-commercialisation

-1.17360*** -1.59740*** ---

Index 4 - Technology 0.02579 -0.01491 ---

Index 5 - Diversity -0.40194** -0.39740** ---

Index 6 - Individual -0.43699*** 0.04577 ---

Index 7 - Location 0.31783** -0.06648 ---

Index 8 - Household 0.72906*** 0.45857** ---

Index 9 - Financial -0.92097*** -5.11626*** ---

Log-Likelihood Function 34.04072

Inf.Cr.AIC / AIC/N 85.9 / 0.043

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.18. Irish cattle other farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2018

Total output Class 1 Class 2 Class 3

Land 0.40162 -0.15978 -0.07065

Livestock -0.25657 1.56344 -1.01248

Capital 0.13956 -0.54366** 0.77212**

Labour 0.62340 1.98457*** -1.16531*

Material 0.04409 -2.11200*** 0.20531

Land*Land 0.00438 -0.07244* 0.05745**

Livestock*Livestock 0.04109 0.00801 0.08351

Capital*Capital -0.00162 0.00850* -0.01460

Labour*Labour 0.03927 0.04981 -0.01466

Material*Material 0.02590*** 0.11808** 0.09505**

Land*Livestock 0.02501 0.17476** 0.06840*

Land*Capital 0.00155 -0.06402** -0.00107

Land*Labour -0.05620* 0.06053 -0.06578*

Land*Material -0.03494 -0.03521 -0.01285

Livestock*Capital 0.00426 0.03081 0.15096***

Livestock*Labour 0.00818 -0.21828 -0.12153

Livestock*Material 0.05394 0.26198** -0.06107

Capital*Labour -0.01306 0.07052** -0.12107***

Capital*Material -0.02563 -0.01072 0.00924

Labour*Material -0.04498 -0.30484*** 0.14069**

Time 0.09564** 0.09733 0.01490

Time*Time -0.00334*** -0.00443*** -0.00177*

Time*Land 0.00326 0.01254 0.00585

Time*Livestock 0.00257 -0.01668 0.02298***

Time*Capital -0.00280 -0.00906** 0.00655

Time*Labour -0.00500 0.02064** -0.00758

Time*Material -0.00542 0.00488 -0.01618***

Number of observations / average group size 1022 / 3.38 524 / 2.57 431 / 3.48

R-squared / R-bar squared 0.9523 / 0.9297 0.9359 / 0.8856 0.9783 / 0.9666

Rho squared (residual variation) 0.7486 0.8309 0.9275

R-squared (within groups var) 0.3596 0.4107 0.5812

Hausman Test 95.15*** 64.13*** 63.87***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

86 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.8.19. Irish cattle other farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.05555*** 0.01974 0.00923

Livestock 0.37527*** 0.42284*** 0.32718***

Capital 0.06221*** 0.04146** 0.02159

Labour 0.07739*** 0.02920 0.09915***

Material 0.36205*** 0.37024*** 0.37778***

Returns-to-scale 0.93247*** 0.88347*** 0.83495***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.8.20. Irish cattle other farms: Class identification - mean values indices

Mean values1, 2010 to 2018

Class 1: Medium productive (51.7%)

Class 2: Least productive (26.5%)

Class 3: Most productive (21.8%)

Index 1 - Structure 0.0570 0.5500 -0.8039

Index 2 - Environmental sustainability 0.0932 0.9124 -1.3301

Index 3 – Innovation-cooperation-commercialisation -0.0244 -0.1157 0.1985

Index 4 - Technology -0.0219 -0.1016 0.1754

Index 5 - Diversity 0.0785 -0.3525 0.2423

Index 6 - Individual -0.1239 0.2398 0.0021

Index 7 - Location 0.1908 0.2119 -0.7101

Index 8 - Household 0.2189 0.1419 -0.6916

Index 9 - Financial -0.0135 -0.0669 0.1134

Note: 1. At class means, scaled values.

Source: Estimations.

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8.5. Irish sheep farms

Table A.B.8.21. Irish sheep farms: Descriptive statistics

Sample 2010 to 2018

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 1 147)

1st year (2010, n = 124)

Final year (2018, n = 125)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (EUR) 35 654 [0; 462 936]

27 071 [1 610; 168 216]

37 334.3 [1 207; 199 151]

Total output (EUR) 58 468 [5 549; 583 551]

53 276 [10 339; 251 836]

61 650.91 [10 795; 239 194]

Land (ha) 71.0 [7.9; 1 116.8]

71.7 [7.9; 418]

71.155 [14.16; 1 116.82]

Livestock Units (number) 2 880 [0; 30 879]

63.4 [14.5; 304.2]

65.6 [8.1; 316.7]

Capital depreciation (EUR) 4 926 [0; 38 952]

4 654 [19; 25 752]

5 549 [0; 26 588]

Hired labour (AWU) 0.1278 [0.0001; 0.3574]

0.1744 [0.0161; 0.4097]

0.0961 [8.00732E-05; 0.3574]

Family labour (AWU) 1.0804 [0.0009; 198.7042]

1.0219 [0.0939; 2.4003]

1.1033 [0.0009; 198.7042]

Materials (EUR) 3 909 [101; 27 065]

3 376 [101; 20 686]

4 521 [354; 19 713]

Stocking density (LU per ha) 1.23 [0.02; 4.17]

1.18 [0.09; 3.53]

1.23 [0.04; 4.08]

Organic (0-1 probability) 0.026 [0; 1]

0.034 [0; 1]

0.023 [0; 1]

Total assets (EUR) 792 034 [6 831; 4 334 456]

781 491 [10 100; 3 114 416]

810 747 [129 001; 3 832 822]

Age (years) 56.5 [18; 88]

55 [26; 85]

57.5 [35; 78]

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Table A D.8.22. Irish sheep farms: Latent class estimates

LCM panel translog reduced model, 2010 to 2018

Total output Class 1 Class 2 Class 3

constant 18.1972*** 8.24771*** 8.53271***

Land -0.96806*** -0.18850** 0.66073***

Livestock 1.13214*** -0.11410 1.28961***

Capital -0.22162 0.02785 -0.09815*

Labour 0.24370** -0.09519 -0.00387

Material -1.71873*** 0.12024 -0.69504**

Land*Land 0.12310*** 0.00981 -0.06790***

Livestock*Livestock -0.08236*** 0.08255*** -0.08928***

Capital*Capital 0.01857** 0.00176 0.00873**

Labour*Labour 0.07456 -0.01512 -0.06342

Material*Material 0.09170*** 0.00818 0.04139**

Time -0.02769 -0.04458 -0.34798***

Time*Time -0.00125 0.00497*** -0.00283

Time*Land 0.00145 0.00769 0.01992*

Time*Livestock 0.01760 0.00382 -0.00108

Time*Capital -0.00746 -0.01564*** 0.00500

Time*Labour -0.03027* 0.02436* -0.02099

Time*Material 0.00236 0.00789 0.02677*

Sigma 0.15956*** 0.15767*** 0.17866***

Class Membership Vector

Constant -2.89970*** 0.03756 ---

Index 1 - Structure 1.24398 0.65415* ---

Index 2 - Environmental sustainability 2.84095*** 0.66108*** ---

Index 3 – Innovation-cooperation-commercialisation 2.76689*** 0.90635** ---

Index 4 - Technology 0.51187** 0.31369** ---

Index 5 - Diversity -1.24243*** -0.05331 ---

Index 6 - Individual -1.88034*** 0.27036 ---

Index 7 - Location -0.00244*** -0.00039 ---

Index 8 - Household -0.27931 1.04426*** ---

Index 9 - Financial 3.63912*** -0.07814 ---

Log-Likelihood Function 277.3416

Inf.Cr.AIC / AIC/N -400.7 / -0.349

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.23. Irish sheep farms: Full production function estimates

Fixed-effects panel translog model per class, 2010 to 2018

Class 1 Class 2 Class 3

Land -2.57145* -0.01783 0.99409

Livestock 1.94472* -0.43851 2.32749***

Capital -0.00542 -0.43993 -0.08918

Labour 0.93640 0.61077 -0.69985

Material -0.96840 -0.38871 -0.19168

Land*Land 0.33564* 0.02778 -0.09695

Livestock*Livestock 0.10522 -0.08657 0.05737

Capital*Capital 0.02025 -0.00909 0.00927

Labour*Labour 0.00575 0.04956 -0.15804*

Material*Material 0.11314* -0.03110 0.05507

Land*Livestock -0.13272 0.01708 -0.10659

Land*Capital 0.15298** -0.01988 0.00725

Land*Labour -0.08323 -0.01365 0.02583

Land*Material -0.20537 -0.07899 -0.20892

Livestock*Capital -0.11565 0.00670 0.00201

Livestock*Labour -0.08830 0.15486 -0.19485*

Livestock*Material 0.18621 -0.24384* -0.07516

Capital*Labour -0.05635 0.07015* -0.01747

Capital*Material 0.02210 -0.01278 0.06362

Labour*Material -0.08285 0.06588 0.13965

Time -0.20125** -0.08727 -0.20701***

Time*Time 0.00037 0.00461*** -0.00183

Time*Land 0.00486 0.00342 0.00102

Time*Livestock 0.00069 -0.00451 0.01590

Time*Capital 0.01546** -0.01440*** 0.00997

Time*Labour -0.03182** 0.02179 -0.01303

Time*Material 0.00381 0.01687** 0.00858

Number of observations / average group size 286 / 3.29 434 / 3.31 427 / 2.99

R-squared / R-bar squared 0.9833 / 0.9722 0.9601 / 0.9374 0.9816 / 0.9694

Rho squared (residual variation) 0.8694 0.7484 0.8721

R-squared (within groups var) 0.4715 0.4504 0.4579

Hausman Test 50.96*** 38.85** 48.06***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.8.24. Irish sheep farms: Elasticities for classes

LCM panel translog reduced model, 2010 to 2018

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.09623*** 0.07407*** 0.24879***

Livestock 0.52141*** 0.50788*** 0.58549***

Capital 0.05835** 0.02226 0.06037***

Labour 0.10732** 0.02401 0.10944**

Material 0.15923*** 0.31420*** 0.21900***

Returns-to-scale 0.94255*** 0.94242*** 1.22308***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.8.25. Irish sheep farms: Class identification - mean values indices

Mean values1, 2010 to 2018

Class 1: Most productive (24.9%)

Class 2: Least productive (37.8%)

Class 3: Medium productive

(37.3%)

Index 1 - Structure -0.4410 0.3694 -0.0801

Index 2 - Environmental sustainability -0.2608 0.4795 -0.3127

Index 3 – Innovation-cooperation-commercialisation 0.1526 -0.0490 -0.0524

Index 4 - Technology 0.4368 0.2439 -0.5405

Index 5 - Diversity 0.2757 0.0866 -0.2726

Index 6 - Individual -0.2455 0.3065 -0.1471

Index 7 - Location -0.2359 0.2511 -0.1202

Index 8 - Household -0.5938 0.8222 -0.4380

Index 9 - Financial 0.9843 -0.3651 -0.2881

Note: 1. At class means, scaled values.

Source: Estimations.

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9. Italy

9.1. Italian crop farms

Table A D.9.1. Italian crop farms: Descriptive statistics,

Sample 2008 to 2015

Full sample

(n = 20 847)

1st year

(2008, n = 3 260)

Final year

(2015, n = 1 971)

Statistical measure Mean

[Min; Max]

Mean

[Min; Max]

Mean

[Min; Max] Variable 1

Crop output (EUR) 2 75 490

[0; 7 000 000]

77 832

[0; 6 800 000]

72 000

[0; 3 400 000]

Land (ha) 44.3

[0.15; 3 445.1]

46.1

[0.6; 3445.1]

42.4

[0.7; 1 258.4]

Capital depreciation (EUR) 7 217

[0; 418 936]

7 083

[0; 200 373]

7 812

[0; 418 936]

Chemicals cost (EUR) 12 524

[0; 913 211]

12 432

[0; 913 211]

12 470

[0; 435 120]

Materials (EUR) 9 812

[0; 883 516]

9 344

[0; 711 585]

9 703

[0; 400 720]

Hired labour (AWU) 0.3538

[0; 109.9]

0.3887

[0; 53.6]

0.2958

[0; 66.6]

Family labour (AWU) 1.0825

[0.1; 11]

1.0348

[0.02; 9.25]

1.1222

[0.03; 6]

Organic (0-1 probability) 0.0236

[0; 1]

0.0331

[0; 1]

0.0315

[0; 1]

Total assets (EUR) 733 873

[0; 85 000 000]

711 735

[0; 85 000 000]

698 000

[0; 20 000 000]

Age (years) 57.1

[12; 101]

56.75

[12; 95]

57.09

[22; 95]

Less-Favoured-Area

(1-3 severely disadvantaged )

1.5609

[0; 3]

1.4809

[0; 3]

1.6601

[0; 3]

Note: 1. Values are per year. AWU: Annual Work Unit.

2. Gross value of production for output as supplied by national agency.

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Table A D.9.2. Italian crop farms: Latent class estimates

LCM panel translog reduced model, 2008 to 2015

Total crop output Class 1 Class 2 Class 3

constant 8.7703*** 8.4078*** 8.4711***

Land 0.0507* 0.3405*** 0.2971***

Capital -0.0534*** 0.0291 -0.0128

Labour 0.3286*** 0.2931** 0.2168***

Chemicals -0.0652*** -0.3143*** -0.0507

Materials -0.1124*** -0.1222*** -0.2726***

Land*Land 0.0185*** -0.0192** 0.0029

Capital*Capital 0.0057*** -0.0054*** -0.0024

Labour*Labour -0.0078 -0.1678 0.0158

Chemicals*Chemicals 0.0183*** 0.0285*** 0.0286***

Materials*Materials 0.0246*** 0.0329*** 0.0202***

Time -0.0018* -0.0041 0.1067

Time*Time 0.1981*** 0.1112* -0.0025

Time*Land -0.0111*** -0.0229** -0.0086

Time*Capital 0.0049*** -0.0009 0.0034

Time*Labour -0.0054 -0.0176 1.04e-05

Time*Chemicals -0.0072*** 0.0293*** -0.0079***

Time*Materials 0.0081*** -0.0101** 0.0149***

Sigma 0.4578*** 0.6247*** 0.5032***

Class Membership Vector

Constant 0.1452 -0.2691 ---

Index 1 - Structure -0.2122*** 0.1939* ---

Index 2 - Environmental sustainability 0.2487*** -0.1359 ---

Index 3 – Innovation-cooperation-commercialisation 0.2458*** -0.1498 ---

Index 4 - Technology 0.1393* 0.0527 ---

Index 5 - Diversity -0.5771*** 0.0621 ---

Index 6 - Individual -0.0559 -0.0426 ---

Index 7 - Location 0.2071*** 0.0147 ---

Log-Likelihood Function -14480.36

Inf.Cr.AIC / AIC/N 29100 / 1.396

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.9.3. Italian crop farms: Full production function estimates

Fixed-effects panel translog model per class, 2008 to 2015.

Total crop output Class 1 Class 2 Class 3

Land -0.2122*** 0.3657 0.6229***

Capital 0.0235 0.0398 0.0015

Labour 0.2339*** -0.6635** 0.1950

Chemicals -0.0662*** -0.0531 -0.1637***

Materials 0.0531** -0.1189 -0.1959***

Land*Land 0.0573*** -0.0877 0.0107

Capital*Capital 0.0017** -0.0007 -0.0009

Labour*Labour 0.0216*** -0.0958** 0.0237

Chemicals*Chemicals 0.0108*** 0.0129** 0.0197***

Materials*Materials 0.0139*** 0.0283*** 0.0151***

Land*Capital 0.0033 0.0124 -0.0114**

Land*Labour -0.0383*** 0.0935 0.0061

Land*Chemicals 0.0092** -0.0022 -0.0014

Land*Materials -0.0008 -0.0012 -0.0185**

Capital*Labour 0.0084** 0.0237 -0.0037

Capital*Chemicals 0.0015 -0.0011 0.0009

Capital*Materials -0.0076*** 0.0035 0.0043

Labour*Chemicals -0.0087 0.0326 0.0002

Labour*Materials 0.0082 -0.0065 -0.0098

Chemicals*Materials -0.0029 -0.0106 0.0068**

Time 0.0625*** 0.0017 0.1079***

Time*Time -0.0041*** -0.0038 -0.0071***

Time*Land 0.0092*** 0.0041 -0.0087*

Time*Capital 0.0016** -0.0066 0.0004

Time*Labour -0.0049 0.0079 0.0016

Time*Chemicals -0.0022* 0.0171** 0.0032

Time*Materials -0.0038** -0.0051 0.0021

Number of observations / average group size 10756 / 2.26 1432 / 1.33 8659 / 2.19

R-squared / R-bar squared 0.9748 / 0.9546 0.9859 / 0.9387 0.9407 / 0.8904

Rho squared (residual variation) 0.8017 0.8898 0.6611

R-squared (within groups var) 0.2588 0.2501 0.1861

Hausman Test 898.69*** 114.54*** 214.94***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.9.4. Italian crop farms: Elasticities for classes

LCM panel translog reduced model, 2008 to 2015

Wald procedure based on delta method at sample means

Total crop output Class 1 Class 2 Class 3

Land 0.0966*** 0.3152*** 0.1179***

Capital 0.0333*** 0.0183*** 0.0405***

Labour 0.4646*** 0.0955*** 0.0847***

Chemicals 0.1526*** 0.3982*** 0.3421***

Materials 0.3039*** 0.0891*** 0.3759***

Returns-to-scale 1.0512*** 0.9163*** 0.9612***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.9.5. Italian crop farms: Class identification - mean values indices

Mean values1

Class 1: Most productive (51.5%)

Class 2: Least productive (7%)

Class 3: Medium productive (41.5%)

Index 1 - Structure -0.1764 0.3482 0.1629

Index 2 - Environmental sustainability -0.0247 -0.1281 0.0511

Index 3 – Innovation-cooperation-commercialisation 0.2429 -0.6062 -0.2041

Index 4 - Technology 0.1207 0.1024 -0.1657

Index 5 - Diversity -0.7459 1.4586 0.6909

Index 6 - Individual -0.1459 -0.0469 0.1881

Index 7 - Location 0.1094 0.3591 -0.1927

Note: 1. At class means, scaled values.

Source: Estimations.

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10. Korea

10.1. Korean rice farms

Table A D.10.1. Korean rice farms: Descriptive statistics

Sample 2003 to 2015

Note: 1. Values are per year.

Full sample (n = 16 565)

1st year (2003, n = 1 300)

Final year (2015, n = 1 219)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Rice output (EUR) 8 296 [0; 230 997]

7 808 [276; 119 481]

11 262 [616; 230 997]

Land (ha) 1.18 [0.16; 35.51]

1.14 [0.19; 19.23]

1.52 [0.19; 27.16]

Capital depreciation (EUR) 438 [0; 24 693]

402 [0; 15 931]

539 [0; 24 693]

Chemicals cost (EUR) 833 [0; 30 269]

597 [0; 11 948]

1 158 [0; 30 269]

Materials (EUR) 314 [0; 31 065.1]

657 [0; 7 965]

375 [0; 10 355]

Family labour (hour) 172.5 [0; 3 598.0]

248.3 [8; 2 932.0]

145 [11.0; 2 526]

Hired labour (hour) 20.1 [0; 3 958]

45.5 [0; 1 530.3]

15.7 [0; 608.0]

Total assets (EUR) 1 531 [0.4; 159 308]

1 165 [2.9; 70 892]

2 176 [1.7; 159 308]

Age (years) 63.9 [29; 92]

59.4 [30; 89]

67.4 [33; 91]

Part-Time Farming (probability) 0.55 [0; 1]

0.45 [0; 1]

0.54 [0; 1]

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Table A D.10.2. Korean rice farms: Latent class estimates

LCM panel translog reduced model, 2003 to 2015

Total rice output Class 1 Class 2 Class 3

Constant 4.5906*** 4.3874*** 4.6636***

Land 1.1359*** 0.8945*** 1.2614***

Capital 1.5187*** 0.8765*** 1.3836***

Labour -0.8171*** -0.5253*** -0.1071

Chemicals 0.1757*** 1.1829*** 0.6687***

Materials 0.5066*** -0.0777*** 0.0709**

Land*Land 0.0847*** 0.0411*** 0.1098***

Capital*Capital -0.0614*** -0.0329*** -0.0666***

Labour*Labour 0.0462*** 0.0846*** 0.0571**

Chemicals*Chemicals -0.0031*** -0.0482*** -0.0265***

Materials*Materials -0.0184*** -0.0003 -0.0082***

Time 0.0473 -0.1797*** 0.3765

Time*Time 0.0082*** -0.0029*** 0.0053***

Time*Land -0.0027 0.0148*** 0.0182***

Time*Capital 0.0007 -0.0093*** -0.0051***

Time*Labour 0.0389*** -0.0418*** -0.0768***

Time*Chemicals -0.0119*** 0.0207*** 0.0179***

Time*Materials -0.0122*** 0.0082*** 0.0074***

Sigma 0.2577*** 0.3311*** 0.4055***

Class Membership Vector

Constant 0.4276*** 0.1839 ---

Index 1 - Structure -0.0321 -0.1366 ---

Index 2 - Environmental sustainability 0.2271*** -0.3286*** ---

Index 3 – Innovation-cooperation-commercialisation -0.1125 0.0872 ---

Index 4 - Technology 0.3766*** 0.3529*** ---

Index 5 - Diversity 0.3117*** -0.2341** ---

Index 6 - Individual 0.0094 0.0009

Index 7 - Location -0.3013*** 0.1401 ---

Index 8 - Household -0.5109*** 0.0655

Log-Likelihood Function -2249.801

Inf.Cr.AIC / AIC/N 4643.6 / 0.280

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.10.3. Korean rice farms: Full production function estimates

Fixed-effects panel translog model per class, 2003 to 2015

Total rice output Class 1 Class 2 Class 3

Land 0.3804*** 0.0021 -7.2769***

Capital 1.3701*** 0.3376*** -0.4102***

Labour -0.8236*** -0.2137* -2.3312***

Chemicals 0.2637*** 2.1913*** 1.5058***

Materials 0.2658*** -0.2304*** 0.3456***

Land*Land 0.0169* 0.0117 -0.6895***

Capital*Capital -0.0416*** -0.0016 -0.0508***

Labour*Labour -0.0375*** 0.0376*** 0.1713***

Chemicals*Chemicals 0.0002 -0.0789*** -0.1065***

Materials*Materials -0.0012 0.0012** -0.0106***

Land*Capital 0.0457*** 0.0149** -0.4072***

Land*Labour -0.0131 -0.0362* 0.8871***

Land*Chemicals 0.0172*** 0.0812*** 0.5679***

Land*Materials -0.0091* -0.0161*** 0.0036

Capital*Labour 0.0721*** -0.0073*** -0.2709***

Capital*Chemicals -0.0246*** -0.0173*** 0.1019***

Capital*Materials -0.0312*** 0.0014 0.0097***

Labour*Chemicals -0.0002 0.0011 0.4576***

Labour*Materials 0.0172*** -0.0011 0.0317***

Chemicals*Materials 0.0076*** 0.0138*** -0.0444***

Time 0.0246 0.0701*** 1.2173***

Time*Time 0.0035*** -0.0024*** -0.0159***

Time*Land 0.0013 0.0068*** 0.0492***

Time*Capital 0.0023*** -0.0033*** 0.0679***

Time*Labour 0.0115*** -0.0131*** -0.2092***

Time*Chemicals -0.0059*** 0.0049*** -0.0736***

Time*Materials -0.0056*** 0.0016*** 0.0195***

Number of observations / average group size 9687 / 3.04 5472 / 2.86 1452 / 1.82

R-squared / R-bar squared 0.9737 / 0.9636 0.9937 / 0.9915 0.9947 / 0.9919

Rho squared (residual variation) 0.6103 0.8781 0.9982

R-squared (within groups var) 0.9641 0.9926 0.9581

Hausman Test 922.63*** 6009.86*** 31.37***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

98 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.10.4. Korean rice farms: Elasticities for classes

LCM panel translog reduced model, 2003 to 2015

Wald procedure based on delta method at sample means

Total rice output Class 1 Class 2 Class 3

Land 1.0647*** 0.9837*** 1.2039***

Capital 0.0318*** 0.0144*** 0.0186***

Labour 0.0791*** 0.0776*** 0.1515***

Chemicals 0.0041*** 0.0095*** 0.1204***

Materials 0.0307*** 0.0329*** 0.0562***

Returns-to-scale 1.2104*** 1.0522*** 1.5505***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.10.5. Korean rice farms: Class identification - mean values indices

Mean values1

Class 1: Medium productive (57.9%)

Class 2: Most productive (33.3%)

Class 3: Least productive (8.8%)

Index 1 - Structure 0.1204 -0.3246 0.4015

Index 2 - Environmental sustainability 0.3026 -0.6276 0.3163

Index 3 – Innovation-cooperation-commercialisation -0.0549 0.1643 -0.2428

Index 4 - Technology 0.0403 0.1355 -0.7632

Index 5 - Diversity 0.4086 -0.7518 0.0758

Index 6 - Individual -0.1283 0.2396 -0.0365

Index 7 - Location -0.1983 0.3425 0.0452

Index 8 - Household -0.4627 0.6586 0.6226

Note: 1. At class means, scaled values.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 99

DRIVERS OF FARM PERFORMANCE Unclassified

11. Norway

11.1. Norwegian dairy farms

Table A D.11.1. Norwegian dairy farms: Descriptive statistics

Sample 2005 to 2016

Note: LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 5 549)

1st year (2005, n = 515)

Final year (2016, n = 453)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 93 628 [2 324; 558 221]

54 947 [2 324; 189 553]

137 855 [4 514; 433 974]

Dairy cows (n) 23.0 [0; 111]

17.9 [0; 59]

27.2 [0; 87]

Capital depreciation (EUR) 20 884 [0; 156 439]

12 064 [0.501; 56 674]

31 002 [2 046; 133 550]

Fodder cost (EUR) 31 253 [0; 231 320]

16 854 [329; 94 136]

43 341 [433; 183 229]

Materials (EUR) 54 103 [3 299; 333 959]

32 729 [3 299; 185 698]

76 306 [12 543; 286 037]

Hired labour (h) 1 427 [0; 15 020]

1 267 [0; 8 250]

1 582 [0; 15 020]

Family labour (h) 2 878 [102; 8 508]

2 852 [102; 5 970]

2 734 [120; 6 400]

Land (ha) 34.3 [3; 263.6]

26.9 [6.6; 93.3]

39.8 [9.1; 138.3]

Stocking density (LU per ha) 0.72 [0; 2.88]

0.72 [0; 1.62

0.73 [0; 2.88]

Chemicals cost (EUR) 7 005 [0; 99 456]

4 341 [0; 27 772]

9 621 [0; 70 448]

Organic (0-1 probability) 0.078 [0; 1]

0.041 [0; 1]

0.059 [0; 1]

Total assets (EUR) 244 159 [0; 2 264 968]

143 122 [0; 1 272 694]

375 810 [0; 1 902 640]

Age (years) 48.6 [20; 71]

47.1 [26; 69]

49.2 [25; 71]

Total Subsidies (EUR) 46 016 [5 513; 157 061]

29 958 [8 071; 74 362]

58 634 [13 649; 134 180]

100 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.11.2. Norwegian dairy farms: Latent class estimates

LCM panel translog reduced model, 2005 to 2016

Total dairy output Class 1 Class 2 Class 3

constant -8.1464*** -7.2472*** 1.9732*

Land 0.0663 -0.4247** 1.1681***

Dairy Cows -0.1556*** 0.0669 -0.1196**

Capital -0.0143** 0.2708e-04 -0.0145

Fodder 1.0566*** 0.0088 -0.0939***

Labour 1.9376*** 1.6149*** 0.0457

Intermediates 0.5644*** 1.2962*** -0.2681

Land*Land -0.0115 0.0777*** -0.1446***

Dairy cows*Dairy cows 0.1399*** -0.0041 0.0313***

Capital*Capital 0.0009 0.0009 0.0033

Fodder*Fodder -0.0709*** 0.0695*** 0.0461***

Labour*Labour -0.1131*** -0.0876*** 0.0156

Intermediates*Intermediates -0.0441*** -0.0906*** 0.0461**

Time -0.0534*** -0.0258 0.0374

Time*Time -0.0004 0.0015 0.0012

Time*Land 0.0054** -0.0187** -0.0121

Time*Dairy Cows -0.0233*** -0.0101* 0.0058

Time*Capital 0.0005 0.0007 0.0002

Time*Fodder 0.0189*** -0.0197*** 0.0029

Time*Labour -0.0005 0.0053 -0.0045

Time*Intermediates 0.0057 0.0247** -0.0004

Sigma 0.1109*** 0.2707*** 0.1752***

Class Membership Vector

Constant 0.9731*** -0.7344*** ---

Index 1 - Structure 0.1507** 0.3819*** ---

Index 2 - Environmental sustainability -0.8312*** -0.2771*** ---

Index 3 – Innovation-cooperation-commercialisation 0.2572** 0.4268*** ---

Index 4 - Technology 0.0003 -0.0004 ---

Index 5 - Diversity 0.0041 1.1177*** ---

Index 6 - Individual 0.1856 0.1879 ---

Index 7 - Location -0.8971*** -1.3788*** ---

Index 8 - Household -1.0093*** 0.0476 ---

Index 9 - Financial -0.0008** 0.0016** ---

Log-Likelihood Function 1745.8

Inf.Cr.AIC / AIC/N -3319.6 / -0.598

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 101

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Table A D.11.3. Norwegian dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 2005 to 2016

Total dairy output Class 1 Class 2 Class 3

Land -0.2361 -2.4116*** 0.3053

Dairy cows 0.3045 0.3214 -1.0299***

Capital -0.0135 0.2193 0.0166

Fodder 0.8734*** -0.5087 0.1864

Labour 0.8219*** 2.0012** 1.8117***

Intermediates 0.5393** 1.0815 0.784

Land*Land -0.0499** 0.0169 0.0821

Dairy cows*Dairy cows 0.0791*** 0.0511* 0.0586***

Capital*Capital 0.0051*** 0.0029 0.0037

Fodder*Fodder -0.0524*** 0.0421*** 0.0437***

Labour*Labour -0.0249 -0.1541** -0.0645*

Intermediates*Intermediates -0.0073 0.0091 0.0974

Land*Dairy Cows 0.0158 0.0669 -0.0243

Land*Capital -0.0167*** -0.0073 -0.0083

Land*Fodder 0.0241 -0.2288*** -0.0748*

Land*Labour 0.0289 0.4252*** 0.0771

Land*Intermediates 0.0432 -0.0253 -0.1545

Dairy cows*Capital -0.0132** 0.0273 0.0003

Dairy cows*Fodder 0.0252* 0.0379 0.0252

Dairy cows*Labour 0.0025 0.0111 0.1025*

Dairy cows*Intermediates -0.0827*** -0.1925*** -0.0075

Capital*Fodder 0.0102*** -0.0309** 0.0202***

Capital*Labour -0.0047 -0.0325* -0.0081

Capital*Intermediates 0.0119*** 0.0276 -0.0079

Fodder*Labour -0.0401* 0.0541 -0.0479

Fodder*Intermediates 0.0218 0.1509*** 0.0268

Labour*Intermediates -0.0515 -0.1481 -0.1597**

Time -0.1083*** 0.0892 -0.0105

Time*Time -0.0001 -0.0009 0.0001

Time*Land -0.0014 0.0038 -0.0003

Time*Dairy cows -0.0113*** 0.0109* 0.0071

Time*Capital -0.0007** 0.0003 -0.0002

Time*Fodder 0.0122*** -0.0083* -0.0052*

Time*Labour 0.0123*** -0.0096 0.0021

Time*Intermediates 0.0016 0.0008 0.0034

Number of observations / average group size 3 583 / 4.91 902 / 2.85 1064 / 2.87

R-squared / R-bar squared 0.9894 / 0.9866 0.9704 / 0.9515 0.9873 / 0.9794

Rho squared (residual variation) 0.7723 0.7678 0.8686

R-squared (within groups var) 0.9224 0.6297 0.8064

Hausman Test 2098.44*** 113.95*** 204.13***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

102 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.11.4. Norwegian dairy farms: Elasticities for classes

LCM panel translog reduced model, 2005 to 2016

Wald procedure based on delta method at sample means

Total dairy output Class 1 Class 2 Class 3

Land 0.0231** 0.0214 0.0411

Dairy cows 0.5452*** 0.0186 0.1140***

Capital 0.0048* 0.0113 0.0142

Fodder 0.4019*** 0.5641*** 0.4069***

Labour 0.0485*** 0.2224*** 0.2721***

Intermediates 0.0683*** 0.3992*** 0.2929***

Returns-to-scale 1.0918*** 1.2371*** 1.1413***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.11.5. Norwegian dairy farms: Class identification - mean values indices

Mean values1

Class 1: Most productive (64.6%)

Class 2: Least productive (16.2%)

Class 3: Medium productive (19.2%)

Index 1 - Structure 0.0537 0.3574 -0.4839

Index 2 - Environmental sustainability -0.3782 0.3419 0.9836

Index 3 – Innovation-cooperation-commercialisation -0.0312 0.1412 -0.0147

Index 4 - Technology -0.0102 -0.0121 0.0408

Index 5 - Diversity -0.4519 1.7376 0.0487

Index 6 – Individual -0.0393 0.1414 0.0124

Index 7 – Location -0.1873 -0.1271 0.7384

Index 8 – Household -0.2012 0.3105 0.4144

Index 9 – Financial -0.0865 -0.1789 0.4444

Note: 1. At class means, scaled values.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 103

DRIVERS OF FARM PERFORMANCE Unclassified

11.2. Norwegian crop farms

Table A D.11.6. 11.2. Norwegian crop farms: Descriptive statistics

Full sample

(n = 1613)

1st year

(2005, n = 121)

Final year

(2016, n = 150)

Statistical measure Mean

[Min; Max]

Mean

[Min; Max]

Mean

[Min; Max] Variable 1

Crop output (EUR)2 74 795

[1 125; 968 568]

45 389

[4 182; 221 111]

99 590

[6 410; 866 938]

Land (ha) 33.8

[0.2; 282.4]

31.6

[3.3; 105.5]

38.6

[0.21; 282.4]

Capital depreciation (EUR) 14 548

[430; 115 792]

9 843

[430; 29 326]

19 911

[609; 110 769]

Chemicals cost (EUR) 11 325

[0; 105 889]

7 336

[0; 27 428]

15 773

[0; 85 578]

Materials (EUR) 47 093

[4 562; 403 036]

28 966

[5 488; 103 109]

63 329

[5 956; 333 471]

Hired labour (h) 1 506

[0; 42 304]

876

[0; 13 626]

1 690

[0; 23 300]

Family labour (h) 1 376

[40; 6 500]

1 383

[50; 4 642]

1 313

[105; 5 500]

Organic (0-1 probability) 0.041

[0; 1]

0.017

[0; 1]

0.033

[0; 1]

Total assets (EUR) 195 858

[0; 1 627 447]

138 545

[0; 467 425]

288 852

[0; 1 627 447]

Age (years) 50

[25; 75]

49.3

[18; 66]

51.7

[27; 75]

Total Subsidies (EUR) 16 712

[0; 156 579]

13 000

[1 212; 47 543]

22 138

[0; 156 579]

Note: 1. Values are per year. 2. Gross value of production for output as supplied by national agency.

104 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.11.7. Norwegian crop farms: Latent class estimates

LCM panel translog reduced model, 2005 to 2016

Total crop output Class 1 Class 2 Class 3

Constant -0.2285 5.5585*** -4.3439*

Land -0.0305 1.4663*** -0.0481

Capital -0.0621* 0.0685 0.3617

Chemicals -0.1629** 0.0319 -0.9199***

Labour 0.3724*** -1.0239*** 0.9148**

Intermediates 0.6304*** -0.6442* 1.1357

Land*Land -0.0132 -0.1103*** -0.0943**

Capital*Capital 0.0185** -0.0004 -0.0616**

Chemicals*Chemicals 0.0628*** 0.0253*** 0.2079***

Labour*Labour 0.0124 0.0793*** -0.0172

Intermediates*Intermediates -0.0326* 0.0789** -0.0374

Time 0.0708* -0.0375 0.2111*

Time*Time 0.0025* 0.0063*** 0.0046

Time*Land -0.0037 0.0019 -0.0179

Time*Capital 0.0006 0.0002 0.0445**

Time*Chemicals -0.0084 -0.0068 0.0181

Time*Labour -0.0136** 0.0037 -0.0276*

Time*Intermediates 0.0119 -0.0066 -0.0521*

Sigma 0.2782*** 0.3349*** 0.4005***

Class Membership Vector

Constant 2.4894*** 2.4654*** ---

Index 1 - Structure -3.4225*** -4.4584*** ---

Index 2 - Environmental sustainability -0.6616 0.8749 ---

Index 3 – Innovation-cooperation-commercialisation -0.8167*** -1.9791*** ---

Index 4 - Technology -0.0053*** -0.0021 ---

Index 5 - Diversity -0.4929*** -0.5815*** ---

Index 6 - Individual -0.7108*** -0.3920 ---

Index 7 - Location -0.6819*** -1.4145*** ---

Index 8 - Household -0.9342*** -0.1443 ---

Index 9 - Financial -0.0079 -0.0011 ---

Log-Likelihood Function -631.7

Inf.Cr.AIC / AIC/N 1417.3 / 0.879

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 105

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.11.8. Norwegian crop farms: Full production function estimates

Fixed-effects panel translog model per class, 2005 to 2016

Total crop output Class 1 Class 2 Class 3

Land 0.6399* 1.6826** 2.5939

Capital 0.0228 -0.1879 -0.7525

Chemicals 0.2751 -0.4329 1.6611

Labour -0.2053 0.2627 0.0105

Intermediates 0.5081* -0.1669 2.4456

Land*Land 0.0061 -0.0973 0.3206*

Capital*Capital 0.0028 0.0225 0.0506

Chemicals*Chemicals 0.0123 -0.0051 0.2712***

Labour*Labour 0.0809*** -0.0120 0.1307**

Intermediates*Intermediates 0.0035 -0.0322 -0.2436

Land*Capital 0.0253 -0.1103 -0.1144

Land*Chemicals 0.0288 -0.0118 -0.4894***

Land*Labour -0.0675 0.0347 -0.1416

Land*Intermediates -0.0393 0.0289 -0.0031

Capital*Chemicals -0.0062 0.0052 -0.0786

Capital*Labour -0.0267 0.0401 -0.0411

Capital*Intermediates 0.0299 0.0098 0.2511

Chemicals*Labour -0.0211 -0.0349 -0.2084**

Chemicals*Intermediates -0.0227 0.1438* -0.0846

Labour*Intermediates -0.0318 -0.0206 -0.0525

Time 0.0259 -0.0369 0.2851*

Time*Time 0.0015 0.0035*** 0.0021

Time*Land -0.0059 -0.0025 -0.0257

Time*Capital 0.0005 0.0058 -0.0187

Time*Chemicals -0.0014 -0.0148* 0.0268

Time*Labour -0.0052 -0.0037 -0.0276*

Time*Intermediates 0.0081 0.0168 -0.0089

Number of observations / average group size 674 / 3.79 719 / 4.73 220 / 2.56

R-squared / R-bar squared 0.9761 / 0.9657 0.9367 / 0.9158 0.9764 / 0.9516

Rho squared (residual variation) 0.7371 0.6724 0.9693

R-squared (within groups var) 0.5644 0.4253 0.5963

Hausman Test 59.63*** 57.75*** 105.62***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

106 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.11.9. Norwegian crop farms: Elasticities for classes

LCM panel translog reduced model, 2005 to 2016

Wald procedure based on delta method at sample means

Total crop output Class 1 Class 2 Class 3

Land 0.1299*** 0.6638*** 0.0612***

Capital 0.0543*** 0.0382 0.1157

Chemicals 0.2985*** 0.2096*** 0.7729***

Labour 0.4766*** 0.0886*** 0.4483***

Intermediates 0.3503*** 0.1671*** 0.3755***

Returns-to-scale 1.3096*** 1.1674*** 1.7737***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.11.10. Norwegian crop farms: Class identification - mean values indices

Mean values1

Class 1: Most productive (41.8%)

Class 2: Least productive (44.6%)

Class 3: Medium productive (13.6%)

Index 1 - Structure 0.2520 -0.4360 0.6527

Index 2 - Environmental sustainability -0.4083 0.4361 -0.1743

Index 3 – Innovation-cooperation-commercialisation 0.0931 -0.1866 0.3244

Index 4 - Technology 0.2267 -0.2969 0.4966

Index 5 - Diversity -0.2559 -0.0131 0.8269

Index 6 - Individual -0.2347 0.0842 0.4439

Index 7 - Location 0.3055 -0.6737 1.2658

Index 8 - Household -0.2319 0.1394 0.2550

Index 9 - Financial -0.3574 0.4175 -0.3020

Note: 1. At class means, scaled values.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 107

DRIVERS OF FARM PERFORMANCE Unclassified

11.3. Norwegian cattle farms

Table A D.11.11. Norwegian cattle farms: Descriptive statistics

Note: 1. Values are per year.

Full sample (n = 1 655)

1st year (2005, n = 119)

Final year (2016, n = 158)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Total output (EUR) 56 409 [2 822; 657 018]

29 415 [3 737; 198 274]

76 234 [5 269; 657 018]

Livestock units (number) 97.9 [0; 365.5]

84.1 [0; 223.5]

112.2 [0; 356.2]

Capital depreciation (EUR) 15 024 [361; 145 402]

8 074 [539; 71 027]

22 903 [986; 134 402]

Fodder cost (EUR) 21 010 [9.556; 193 638]

11 446 [678; 87 585]

29 208 [1 424; 187 486]

Materials (EUR) 32 648 [2 976; 246 925]

19 007 [4 357; 55 049]

44 854 [7 790; 199 066]

Hired labour (hour) 990 [0; 10 734]

786 [68; 5 000]

1 122 [0; 6 900]

Family labour (hour) 2 150 [200; 9 027]

2 156 [556; 5 150]

2 066 [420; 6 040]

Land (ha) 22.4 [0; 110.5]

16.7 [1.7; 53.3]

26.9 [0.1; 110.5]

Stocking density (number per ha) 0.04 [0; 2.10]

0.03 [0; 0.73]

0.05 [0; 1.93]

Chemicals cost (EUR) 3 941 [0; 31 938]

2 121 [0; 7 788]

5 270 [0; 25 940]

Organic (0-1 probability) 0.0549 [0; 1]

0.0504 [0; 1]

0.0443 [0; 1]

Total assets (EUR) 131 018 [0; 1 645 237]

78 945 [0; 815 058]

202 772 [0; 1 599 963]

Age (years) 48.8 [24; 70]

48.9 [32; 66]

49.1 [28; 70]

Total subsidies (EUR) 37 808 [4 762.3; 165 111.9]

22 500 [5 896; 59 105]

47 255 [9 745; 116 667]

108 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.11.12. Norwegian cattle farms: Latent class estimates

LCM panel translog reduced model, 2005 to 2016

Total livestock output Class 1 Class 2

constant -0.3942 -7.8791

Land 0.0270 1.4747**

Capital -0.0055 0.1707**

Material 0.9589*** 1.8677**

Fodder -0.3781*** -0.2137

Fuel 0.0966* 0.1432

Labour 0.5489 0.7951

Livestock -0.8374*** -0.0022

Land*Land -0.0022 -0.2047**

Capital*Capital 0.0076* -0.0160

Material*Material -0.0946*** -0.0987

Fodder*Fodder 0.0886*** 0.0679**

Fuel*Fuel -0.0102 0.0121

Labour*Labour -0.0145 -0.0563

Livestock*Livestock 0.1536*** -0.0021

Time 0.1073** -0.2039

Time*Time -0.0025*** 0.0062

Time*Land -0.0055 0.0402

Time*Capital -0.0029*** -0.0049

Time*Material 0.0228*** -0.0464

Time*Fodder -0.0041 -0.0008

Time*Fuel 0.0023 -0.0134

Time*Labour -0.0179*** 0.0396

Time*Livestock 0.0002 -0.0082

Sigma 0.2338*** 0.3821***

Class Membership Vector

Constant 1.7076*** ---

Index 1 - Structure 1.0363*** ---

Index 2 - Environmental sustainability -0.3532** ---

Index 3 – Innovation-cooperation-commercialisation 0.7795*** ---

Index 4 - Technology -0.0031* ---

Index 5 - Diversity -0.6301*** ---

Index 6 - Individual 0.3143* ---

Index 7 - Location 0.4704*** ---

Index 8 - Household 0.0558 ---

Index 9 - Financial 0.0017** ---

Log-Likelihood Function -314.357

Inf.Cr.AIC / AIC/N 748 / 0.452

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

TAD/CA/APM/WP(2020)2/ANN/FINAL 109

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Table A D.11.13. Norwegian cattle farms: Full production function estimates

Fixed-effects panel translog model per class, 2005 to 2016

Total livestock output Class 1 Class 2

Land 0.4632 -2.2147

Capital 0.0252 0.1352

Material -0.2439 3.4212**

Fodder 0.6553*** -1.0545

Fuel 0.1058 -0.0142

Labour -0.7726 0.9156

Livestock -0.3166* 0.5771

Land*Land 0.0218** -0.1128

Capital*Capital 0.0045 0.0054

Material*Material 0.0395 -0.0154

Fodder*Fodder 0.1099*** 0.0065

Fuel*Fuel 0.0039 -0.0897**

Labour*Labour 0.0915** 0.0017

Livestock*Livestock 0.1221*** 0.0646

Land*Capital 0.0054 0.0849*

Land*Material 0.0162 0.0032

Land*Fodder -0.0388 0.0238

Land*Fuel -0.0154 0.1413

Land*Labour -0.0275 0.1753

Land*Livestock -0.0372* 0.1518*

Capital*Material 0.0145 -0.0005

Capital*Fodder -0.0105 -0.0074

Capital*Fuel -0.0103 -0.0012

Capital*Labour -0.0022 -0.0444

Capital*Livestock -0.0095** 0.0404**

Material*Fodder -0.0333 0.0631

Material*Fuel -0.0186 0.0844

Material*Labour -0.0032 -0.4164*

Material*Livestock 0.0349* -0.0596

Fodder*Fuel -0.0057 -0.0163

Fodder*Labour -0.1053*** 0.1764

Fodder*Livestock -0.0375** -0.1247*

Fuel*Labour 0.0204 0.0261

Fuel*Livestock -0.0204 -0.0615

Labour*Livestock -0.0178 -0.0451

Time -0.0103 0.0418

Time*Time -0.0011* 0.0006

Time*Land -0.0005 0.0094

Time*Capital 0.0015 -0.0029

Time*Material -0.0041 -0.0147

Time*Fodder -0.0003 0.0017

Time*Fuel 0.0012 -0.0084

Time*Labour 0.0055 0.0019

Time*Livestock 0.0038* 0.0068

Number of observations / average group size 1 340 /5.30 315 / 2.79

R-squared / R-bar squared 0.9771 / 0.9706 0.9872 / 0.9746

Rho squared (residual variation) 0.6438 0.9316

R-squared (within groups var) 0.8183 0.6692

Hausman Test 89.84*** 106.98***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.Source: Estimations.

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Table A D.11.14. Norwegian cattle farms: Elasticities for classes

LCM panel translog reduced model, 2005 to 2016

Wald procedure based on delta method at sample means

Total livestock output Class 1 Class 2

Land 0.0217 0.4081***

Capital 0.0198*** 0.0329

Material 0.1385*** 0.4181***

Fodder 0.3809*** 0.4208***

Fuel 0.0454*** 0.1236*

Labour 0.3019* 0.5725

Livestock 0.1695*** 0.0805*

Returns-to-scale 1.0777*** 2.0563***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.11.15. Norwegian cattle farms: Class identification - mean values indices

Mean values1

Class 1: Least productive (81%)

Class 2: Most productive (19%)

Index 1 - Structure 0.2452 -1.0429

Index 2 - Environmental sustainability -0.1318 0.5605

Index 3 - Innovation-cooperation-commercialisation 0.0524 -0.2228

Index 4 - Technology -0.0155 0.0677

Index 5 - Diversity -0.2193 0.9327

Index 6 - Individual 0.0267 -0.1138

Index 7 - Location 0.1558 -0.6735

Index 8 - Household 0.0140 -0.0596

Index 9 - Financial -0.1402 0.6169

Note: 1. At class means, scaled values.

Source: Estimations.

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12. Sweden

12.1. Swedish dairy farms

Table A D.12.1. Swedish dairy farms: Descriptive statistics

Sample 1997 to 2017

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 7 729)

1st year (1997, n = 365)

Final year (2017, n = 481)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 132 958 [0; 5 993 978]

74 053 [0; 913 976]

229 266 [0; 2 314 048]

Total output (EUR) 232 613 [0; 8 021 976]

109 962 [0; 948 573]

405 666 [5 613; 3 828 228]

Dairy cows (number) 93 [2; 1 985]

75 [2; 721]

107 [3; 1 985]

Capital depreciation (EUR) 36 259 [0; 681 184]

24 828 [373.822; 165 613]

52 245 [0; 437 547]

Fodder cost (EUR) 107 548 [0; 3 772 453]

37 313 [0; 437 529]

212 870 [0; 2 423 862]

Materials (EUR) 102 352 [0; 5 250 431]

26 853 [718.978; 316 215]

177 797 [0; 1 997 333]

Hired labour (AWU) 0.4808 [0.0029; 15.3489]

0.2582 [0.0171; 1.0278]

0.6009 [0.0352; 4.3589]

Family labour (AWU) 2.8743 [0.0074; 44.1172]

1.2489 [0.0829; 4.9721]

1.6199 [0.0948; 11.7511]

Land (ha) 115.8 [0; 2400]

95.2 [0; 921]

156.4 [0; 976]

Stocking density (LU per ha) 0.82 [0; 52.4]

0.78 [0; 52.4]

0.69 [0; 5.1]

Chemicals cost (EUR) 13 741 [0; 542 486]

7 681 [0; 50 393]

19 678 [0; 281 843]

Organic (0-1 probability) 0.180 618 [0; 1]

0.101439 [0; 1]

0.195426 [0; 1]

Total assets (EUR) 868 940 [12 595; 19 497 927]

37 2534 [25 336; 1 969 743]

162 2962 [13 047; 19 497 927]

Age (years) 55 [21; 87]

52 [21; 85]

57 [21; 87]

112 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.12.2. Swedish dairy farms: Latent class estimates

LCM panel translog reduced model, 1997 to 2017

Total output Class 1 Class 2 Class 3

Constant 10.4107*** 10.0313*** 10.0180***

Land -0.22194*** -0.24732*** -0.39732

Dairy cows -0.10642 -0.34465*** -0.22756**

Capital -0.29222*** -0.80297*** -0.76935***

Labour 0.53797*** 0.56200*** 0.83515***

Materials -0.59111*** 0.28603*** -0.04910

Land*Land 0.04327*** 0.02830*** 0.06979***

Dairy cows*Dairy cows -0.12738 0.05018*** 0.06412***

Capital*Capital 0.03712*** 0.03152*** 0.02209***

Labour*Labour 0.09360*** -0.07914*** -0.26235***

Materials*Materials 0.05733*** 0.02204*** 0.04729***

Time 0.16042*** 0.14210*** 0.32451***

Time*Time 0.00076 -0.00361*** -0.00422**

Time*Land -0.00749*** 0.00306 -0.00414

Time*Dairy cows 0.03728* 0.00610*** 0.00108

Time*Capital -0.00991*** 0.02642*** 0.03726***

Time*Labour -0.00770* -0.02148*** -0.02800**

Time*Materials -0.00610*** -0.02535*** -0.04416***

Sigma 0.66682*** 0.33625*** 0.47380***

Class Membership Vector

Constant -0.58265 0.53673** ---

Index 1 - Structure 0.16721 -0.37343* ---

Index 2 - Environmental sustainability 0.61063*** -0.37086 ---

Index 3 – Innovation-cooperation-commercialisation 0.15765 0.28895* ---

Index 4 - Technology -0.41783 0.09600** ---

Index 5 - Diversity -0.34995 -0.23111 ---

Index 6 - Individual -0.00942 -0.09106 ---

Index 7 - Location -0.59212*** -0.49567*** ---

Index 8 - Household -0.00704*** 0.08086** ---

Index 9 - Financial -0.15107 0.28940 ---

Log-Likelihood Function -5147.43172

Inf.Cr.AIC / AIC/N 10448.9 / 1.352

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.12.3. Swedish dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 1997 to 2017

Total output Class 1 Class 2 Class 3

Land 0.17177** 0.22341 0.49798

Dairy cows 0.05750 0.13893 0.24187

Capital -0.00016 -0.33480** 0.41113

Labour 0.53161*** 0.64530** 0.32936

Materials -0.19499*** -0.61992*** -0.41489

Land*Land 0.02753*** 0.01876** -0.04731

Dairy cows*Dairy cows 0.03094*** 0.05150*** 0.05861***

Capital*Capital 0.01440*** 0.01066*** -0.01919

Labour*Labour 0.03150*** -0.01213 -0.10132*

Materials*Materials 0.03480*** 0.04971*** 0.08640***

Land*Dairy cows -0.02928*** 0.00903 -0.05093

Land*Capital -0.02073*** -0.02452* 0.10806***

Land*Labour -0.00353 -0.01315 -0.10618**

Land*Materials -0.05494*** 0.03231 0.12786*

Dairy cows*Capital 0.00718 -0.00719 0.01057

Dairy cows*Labour -0.00585 -0.02124** -0.01875

Dairy cows*Materials -0.03933*** -0.01658 0.04645

Capital*Labour -0.01755*** 0.01387 -0.04538

Capital*Materials 0.00948 0.05037** -0.07540*

Labour*Materials -0.00466 -0.07351*** 0.00724

Time -0.04416*** 0.10172*** 0.10189**

Time*Time 0.00094*** -0.00216*** -0.00170**

Time*Land 0.00357* 0.00599** 0.01391*

Time*Dairy cows 0.00042 -0.00032 -0.00528*

Time*Capital 0.00571*** 0.01055*** 0.00905*

Time*Labour -0.00346*** -0.01240*** -0.01532***

Time*Materials -0.00352 -0.01078** -0.00415

Number of observations / average group size 2780 / 4.72 3622 / 3.73 1327 / 2.91

R-squared / R-bar squared 0.9305 / 0.9114 0.9659 / 0.9529 0.9736 / 0.9585

Rho squared (residual variation) 0.7389 0.8413 0.9662

R-squared (within groups var) 0.3356 0.5037 0.4888

Hausman Test 344.09*** 256.38*** 446.63***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.12.4. Swedish dairy farms: Elasticities for classes

LCM panel translog reduced model, 1997 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.08798*** 0.06141*** 0.12447**

Dairy cows 0.08077 -0.04632*** -0.09403***

Capital 0.38513*** 0.24262*** 0.18263***

Labour 0.54785*** 0.14729*** 0.33770***

Materials -0.08432*** 0.43797*** 0.39643***

Returns-to-scale 1.01741*** 0.84296*** 0.94720***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.12.5. Swedish dairy farms: Class identification - mean values indices

Mean values1, 1997 to 2017

Class 1: Medium productive (36%)

Class 2: Most productive (46.9%)

Class 3: Least productive (17.1%)

Index 1 - Structure 0.6886 -0.5555 0.0735

Index 2 - Environmental sustainability 0.1928 -0.1166 -0.0856

Index 3 – Innovation-cooperation-commercialisation -0.2586 0.3157 -0.3199

Index 4 - Technology -0.7195 0.5423 0.0272

Index 5 - Diversity -0.8131 0.3138 0.8470

Index 6 - Individual 0.6331 -0.4001 -0.2343

Index 7 - Location -0.1354 -0.2827 1.0553

Index 8 - Household -0.2392 0.0260 -0.0178

Index 9 - Financial -0.3440 0.3595 -0.2605

Note: 1. At class means, scaled values.

Source: Estimations.

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12.2. Swedish crop farms

Table A D.12.6. Swedish crop farms: Descriptive statistics

Sample 1997 to 2017

Note: AWU: Annual Work Unit. 1. Values are per year.

Full sample (n = 3939)

1st year (1997, n = 156)

Final year (2017, n = 153)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (EUR) 65 423 [0; 8 067 918]

46 153 [0; 1 274 245]

178 935 [0; 7 983 603]

Total output (EUR) 218 998 [0; 8 136 613]

97 366 [4 536; 677 057]

461 147 [13 789; 8 023 763]

Land (ha) 115.1 [0; 2 434.3]

94.2 [0.2; 457.7]

156.2 [0.2; 2 336.1]

Capital depreciation (EUR) 33 450 [0; 644 703]

24 013 [2 125; 80 315]

50 164 [147; 519 425]

Materials (EUR) 95 268 [0; 3 694 244]

28 224 [3 374; 130 324]

185 702 [0; 3 157 792]

Chemicals cost (EUR) 13 288 [0; 658 442]

7 488 [0; 62 879]

21 440 [0; 658 442]

Hired labour (AWU) 0.5256 [0.0204; 22.3141]

0.1911 [0.01256; 0.5024]

0.7864 [0.0343; 20.9228]

Family labour (AWU) 1.2767 [0.0496; 54.1964]

1.3306 [0.0874; 3.4976]

1.7359 [0.0757; 46.1848]

Organic (0-1 probability) 0.1866 [0; 1]

0 [0; 0]

0.2614 [0; 1]

Total assets (EUR) 824 064 [10 471; 15 761 483]

362 240 [ 54 150; 1 271 057]

1 591 754 [17 230; 11 301 648]

Age (years) 56 [28; 87]

55 [28; 86]

57 [29; 87]

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Table A D.12.7. Swedish crop farms: Latent class estimates

LCM panel translog reduced model, 1997 to 2017

Total output Class 1 Class 2 Class 3

Constant 10.8277*** 8.01279*** 9.27233***

Land -0.04073 0.59522*** 0.21032*

Chemicals -0.11763*** 0.06380*** -0.02692

Labour 0.65042*** 0.62767*** 0.40806***

Materials -0.24962*** -0.34036*** -0.38539***

Land*Land 0.01514** -0.00865 -0.00284

Chemicals*Chemicals 0.01870*** -0.00142 0.00954***

Labour*Labour 0.01938 -0.05377*** 0.02135

Materials*Materials 0.02663*** 0.03483*** 0.04150***

Time 0.12875*** 0.23757*** 0.09337***

Time*Time 0.26167D-04 0.00144* 0.00119

Time*Land 0.00538** -0.03216*** -0.00695

Time*Chemicals -0.01253*** -0.00316*** -0.00485***

Time*Labour -0.00364 0.00251 0.00780

Time*Materials -0.00274 -0.00309 -0.00296

Sigma 0.46851*** 0.33497*** 0.58140***

Class Membership Vector

Constant 0.02984 1.48867*** ---

Index 1 - Structure 0.62809*** -0.36101* ---

Index 2 - Environmental sustainability -4.84182*** 0.48507 ---

Index 3 – Innovation-cooperation-commercialisation 2.28615*** 2.51535*** ---

Index 4 - Technology 0.00032 0.01306 ---

Index 5 - Diversity -2.81605*** -2.60744*** ---

Index 6 - Individual -1.63067*** -1.11845*** ---

Index 7 - Location -0.62913*** -0.20451** ---

Index 8 - Household -1.15405*** -0.64541*** ---

Index 9 - Financial -6.60918*** -5.44538*** ---

Log-Likelihood Function -2730.15697

Inf.Cr.AIC / AIC/N 5596.3 / 1.421

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.12.8. Swedish crop farms: Full production function estimates

Fixed-effects panel translog model per class, 1997 to 2017

Total output Class 1 Class 2 Class 3

Land -0.07305 -0.32205 0.73529

Chemicals -0.04969** 0.03464 0.02815

Labour 0.07404 0.47578*** 0.92340***

Materials -0.08936*** -0.15376*** -0.10145**

Land*Land 0.03213*** 0.07971*** -0.06990

Chemicals*Chemicals 0.00458** -0.00117 0.00209

Labour*Labour 0.03220 -0.01604 0.06266

Materials*Materials 0.01296*** 0.02784*** 0.02170***

Land*Chemicals 0.00426 0.00648 -0.00176

Land*Labour -0.03468* -0.02746 -0.11901

Land*Materials -0.00576** -0.01520** -0.01512

Chemicals*Labour 0.01197 0.01179 -0.00417

Chemicals*Materials -0.00104 -0.00402* -0.00102

Labour*Materials 0.00388 -0.00926 0.00957

Time 0.01958 0.09694*** -0.06058**

Time*Time 0.00112* 0.00131** 0.00210***

Time*Land 0.00265 -0.00593 0.02104***

Time*Chemicals -0.00290** -0.00162* -0.00251**

Time*Labour 0.01024* 0.00204 -0.00684

Time*Materials -0.00212* -0.00418** -0.00429

Number of observations / average group size 987 / 2.52 1352 / 2.91 1600 / 3.04

R-squared / R-bar squared 0.9781 / 0.9624 0.9809 / 0.9702 0.8871 / 0.8285

Rho squared (residual variation) 0.9249 0.8466 0.7708

R-squared (within groups var) 0.2973 0.6027 0.1789

Hausman Test 232.74*** 142.67*** 84.38***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.12.9. Swedish crop farms: Elasticities for classes

LCM panel translog reduced model, 1997 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.12127*** 0.10275*** 0.10544***

Chemicals 0.09184*** 0.00038 0.04424***

Labour 0.64423*** 0.59533*** 0.50065***

Materials 0.06349*** 0.31573*** 0.29237***

Returns-to-scale 0.92083*** 1.01418*** 0.94271***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.12.10. Swedish crop farms: Class identification - mean values indices

Mean values1, 1997 to 2017

Class 1: Medium productive (25.1%)

Class 2: Most productive (34.3%)

Class 3: Least productive (40.6%)

Index 1 - Structure 0.3008 -0.4505 0.1951

Index 2 - Environmental sustainability -0.3483 0.1396 0.0969

Index 3 – Innovation-cooperation- commercialisation -0.0260 0.5289 -0.4309

Index 4 - Technology 0.7953 -0.0976 -0.1365

Index 5 - Diversity -0.9789 0.0093 0.5960

Index 6 - Individual -0.4333 0.0860 0.1946

Index 7 - Location -0.3213 0.0891 0.1229

Index 8 - Household -0.1616 -0.1687 0.2422

Index 9 - Financial -0.1828 -0.2966 0.3634

Note: 1. At class means, scaled values.

Source: Estimations.

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13. United Kingdom

13.1. UK dairy farms

Table A D.13.1. UK dairy farms: Descriptive statistics

Sample 1995 to 2017

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full Sample (n = 11 334)

1st Year (1995, n = 669)

Final Year (2017, n = 345)

Statistical Measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Milk output (EUR) 194 951 [0; 1 908 241]

144 292 [2 361; 795 473]

373 570 [30 572; 1 908 241]

Total output (EUR) 259 427 [0; 2 209 348]

190 774 [0; 947 331]

496 102 [66 037; 2 209 348]

Dairy cows (number) 119.1 [0; 922.5]

96.9 [12.5; 578]

170.4 [29.8; 868.1]

Capital depreciation (EUR) 22 744 [0; 239 648]

15 297 [805; 117 919]

39 988 [2 922; 176 670]

Fodder cost (EUR) 70 931 [0; 908 660]

41 675 [0; 265 347]

19 147 [0; 111 399]

Materials (EUR) 26 265 [0; 272 917]

15 765 [833; 70 540]

50 173 [5 488; 257 890]

Hired labour (AWU) 0.2335 [0.0008; 2.3951]

0.2436 [0.0591; 2.0902]

0.4553 [0.1048; 1.7441]

Family labour (AWU) 2.8122 [0.0092; 28.8449]

2.7643 [0.6709; 23.7198]

3.0635 [0.7052; 11.7359]

Land (ha) 106.1 [0; 1 131.1]

87.2 [9.5; 497.2]

134.4 [16.6; 565.9]

Stocking density (LU per ha) 1.28 [0; 6.00]

1.24 [0.25; 3.63]

1.41 [0.34; 4.80]

Chemicals cost (EUR) 13 699 [0; 148 675]

11 157 [0; 62 251]

19 147 [0; 111 399]

Organic (0-1 probability) 0.0352 [0; 1]

0 [0; 0]

0.1188 [0; 1]

Total assets (EUR) 1 017 505 [11 043; 10 351 903]

722 355 [11 043; 3 894 874]

2 016 234 [97 051; 8 421 687]

Age (years) 53 [20; 88]

54 [25; 89]

57 [26; 87]

120 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.2. UK dairy farms: Latent class estimates

LCM panel translog reduced model, 1995 to 2017

Total output Class 1 Class 2 Class 3

Constant 9.48602*** 9.29159*** 9.30641***

Land 0.14345*** 0.19705* 0.13030

Dairy cows -0.50862*** -0.17157* -0.22724***

Capital 0.01612 -0.01058 -0.09482***

Labour 0.13787*** 0.36495*** 0.28973***

Materials -0.38817*** -0.14194*** -0.18203***

Land*Land -0.02188*** -0.02180* -0.02841*

Dairy cows*Dairy cows 0.12188*** 0.06218*** 0.06677***

Capital*Capital 0.01692*** 0.00373 0.01488***

Labour*Labour 0.00093 -0.06625*** -0.08888***

Materials*Materials 0.04021*** 0.02408*** 0.03438***

Time 0.06247*** -0.00092 0.08694***

Time*Time 0.00118*** -0.00057*** 0.00139***

Time*Land 0.00967*** 0.01069*** 0.01223***

Time*Dairy cows -0.00813*** -0.00417 -0.00910*

Time*Capital -0.00713*** 0.00243 -0.01002***

Time*Labour 0.00287 -0.00655* 0.00482

Time*Materials -0.00153*** -0.00104 -0.00224**

Sigma 0.29730*** 0.22311*** 0.24533***

Class Membership Vector

Constant -0.25391 0.23026 ---

Index 1 - Structure 0.19072* -0.10001 ---

Index 2 - Environmental sustainability -0.00571*** 0.01449 ---

Index 3 - Innovation-cooperation-commercialisation 0.00073 0.00501 ---

Index 4 - Technology -0.00205*** -0.00289*** ---

Index 5 - Diversity 0.17582** -0.07131 ---

Index 6 - Individual -0.03802 0.12667 ---

Index 7 - Location -0.03011 0.13890 ---

Index 8 - Household 0.07759 -0.06090 ---

Index 9 - Financial 0.00223*** 0.00575* ---

Log-Likelihood Function -441.83761

Inf.Cr.AIC / AIC/N 1037.7 / 0.092

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.13.3. UK dairy farms: Full production function estimates

Fixed-effects panel translog model per class, 1995 to 2017

Total output Class 1 Class 2 Class 3

Land -0.33248 -0.16710 -0.14497

Dairy cows -0.06771 0.62640*** 0.15318

Capital 0.06701 -0.24302*** 0.03722

Labour -0.30326*** -0.29987*** -0.18390**

Materials 0.49842 0.45193** 0.61987**

Land*Land 0.14693*** 0.07466*** -0.00239

Dairy cows*Dairy cows 0.12497*** 0.02524 0.29803***

Capital*Capital 0.02598*** 0.03089*** 0.00650

Labour*Labour 0.03226*** 0.02894*** 0.02979***

Materials*Materials 0.10417 0.05785** 0.03446

Land*Dairy cows -0.09229 -0.05220 -0.27127***

Land*Capital -0.05665 -0.01483 0.13094***

Land*Labour -0.01091* 0.00025 0.01653

Land*Materials -0.05971 -0.06860* 0.01549

Dairy cows*Capital 0.00697 -0.03124** -0.12075***

Dairy cows*Labour -0.00717 0.00115 -0.00416

Dairy cows*Materials -0.01346 0.01368 0.08429

Capital*Labour 0.00649** -0.00029 0.00080

Capital*Materials -0.03053 -0.00901 -0.09049***

Labour*Materials 0.01622** -0.00125 -0.02244

Time 0.05854*** 0.05841*** 0.06341**

Time*Time 0.00075*** -0.00088*** 0.00571***

Time*Land 0.01156*** 0.37532D-04 0.01227***

Time*Dairy cows -0.00107 0.00038 -0.00910

Time*Capital -0.01103*** -0.00236** -0.01367***

Time*Labour -0.00202*** 0.00104 -0.00307

Time*Materials 0.00615 -0.00529** -0.00193

Number of observations / average group size 3128 / 2.44 6222 / 4.87 1984 / 3.05

R-squared / R-bar squared 0.9624 / 0.9351 0.9711 / 0.9634 0.9671 / 0.9504

Rho squared (residual variation) 0.8289 0.6311 0.9164

R-squared (within groups var) 0.5623 0.7181 0.5589

Hausman Test 128.13*** 157.91*** 177.68***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

122 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.4. UK dairy farms: Elasticities for classes

LCM panel translog reduced model, 1995 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.04674*** 0.13467*** -0.04577

Dairy cows 0.37610*** 0.37087*** 0.31415***

Capital 0.26446*** 0.09516*** 0.12754***

Labour 0.16538*** 0.13324*** 0.15293***

Materials -0.09250*** 0.35164*** 0.48565***

Returns-to-scale 0.76019*** 1.08557*** 1.03451***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.13.5. UK dairy farms: Class identification - mean values indices

Mean values1, 1995 to 2017

Class 1: Least productive (27.6%)

Class 2: Most productive (54.9%)

Class 3: Medium productive (17.5%)

Index 1 - Structure 0.4878 -0.3166 0.2239

Index 2 - Environmental sustainability 0.4292 -0.0346 -0.1172

Index 3 - Innovation-cooperation-commercialisation -0.4167 0.3625 -0.5173

Index 4 - Technology -0.4642 0.4791 -0.5218

Index 5 - Diversity 0.1787 -0.0291 -0.1904

Index 6 - Individual -0.3637 0.4662 -0.8886

Index 7 - Location -0.3790 0.5056 -0.9882

Index 8 - Household 0.0864 -0.0873 0.1377

Index 9 - Financial -0.3598 0.2879 -0.4557

Note: 1. At class means, scaled values.

Source: Estimations.

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13.2. UK cereal farms

Table A D.13.6. UK cereal farms: Descriptive statistics

Sample 1995 to 2017

Note: AWU: Annual Work Unit. 1. Values are per year.

Full sample (n = 14 196)

1st year (1995, n = 747)

Final year (2017, n = 515)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (EUR) 223 114 [0; 10 264 243]

179 007 [ 7754; 3 348 878]

355 561 [1 825; 7 262 165]

Total output (EUR) 306 785 [0; 11 569 591]

222 890 [11 706; 3 360 371]

505 511 [9 939; 7 612 862]

Land (ha) 246.0 [5.4; 4 624.0]

208.2 [5.8; 1 416.6]

283.2 [15.8; 2 727.9]

Capital depreciation (EUR) 36 668 [0; 739 067]

27 504 [0; 273 240]

56 1251 [0; 739 067]

Materials (EUR) 3 522 [0; 170 192]

3 280 [0; 70 739]

3 722 [0; 98 921]

Chemicals cost (EUR) 53 674 [0; 1 950 462]

34 412 [0; 285 019]

83 394 [0; 802 975]

Hired labour (AWU) 0.3662 [0.0005; 16.1458]

0.6091 [0.0016; 16.1458]

0.3433 [0.0005; 10.8521]

Family labour (AWU) 2.8482 [0.0041; 119.9759]

2.8622 [0.0075; 75.8692]

3.0439 [0.0041; 96.2314]

Organic (0-1 probability) 0.0227 [0; 1]

0 [0; 0]

0.0466 [0; 1]

Total assets (EUR) 1 895 239 [0; 53 800 178]

95 0254 [8 932; 6 035 455]

3 909 709 [31 632; 51 497 347]

Age (years) 55 [22; 89]

58 [22; 86]

59 [28; 97]

124 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.7. UK cereal farms: Latent class estimates

LCM panel translog reduced model, 1995 to 2017

Total output Class 1 Class 2 Class 3

Constant 8.30488*** 7.42450*** 8.43100***

Land 0.96281*** 0.48712*** 1.08069***

Capital -0.07991*** -0.20139*** -0.15052***

Labour 0.23606*** 0.38921*** 0.23907***

Chemicals -0.29283*** 0.02766 -0.32438***

Materials -0.04259*** -0.09367*** -0.03741***

Land*Land -0.06151*** -0.06816*** -0.08331***

Capital*Capital 0.01149*** 0.02250*** 0.01404***

Labour*Labour 0.03971*** 0.04692*** 0.06075***

Chemicals*Chemicals 0.02383*** 0.02571*** 0.03244***

Materials*Materials 0.00454*** 0.01091*** 0.00459***

Time 0.02421*** 0.16589*** -0.21015***

Time*Time -0.00179*** 0.00038 0.00709***

Time*Land 0.00944*** 0.02438*** 0.01769***

Time*Capital -0.00291*** -0.00725*** -0.00175

Time*Labour -0.00419*** -0.00449* -0.00934***

Time*Chemicals 0.00255*** -0.01788*** 0.00464***

Time*Materials -0.38969D-04 0.00030 -0.00065

Sigma 0.24097*** 0.54513*** 0.32373***

Class Membership Vector

Constant 1.95921*** -3.51129*** ---

Index 1 - Structure 0.13577 0.89839*** ---

Index 2 - Environmental sustainability -1.19754*** -1.67551*** ---

Index 3 - Innovation-cooperation-commercialisation 0.00250*** 0.00208** ---

Index 4 - Technology 0.83104*** 4.56886*** ---

Index 5 - Diversity 0.52045*** -0.91889*** ---

Index 6 - Individual 0.40767*** 1.40242*** ---

Index 7 - Location 2.12546*** 1.04725*** ---

Index 8 - Household -0.10482 0.83385*** ---

Index 9 - Financial 0.01052 -0.06203 ---

Log-Likelihood Function -2684.17820

Inf.Cr.AIC / AIC/N 5522.4 / 0.389

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.13.8. UK cereal farms: Full production function estimates

Fixed-effects panel translog model per class, 1995 to 2017

Total output Class 1 Class 2 Class 3

Land 0.38440*** 0.95770** 0.51529**

Capital -0.07815 -0.38701*** 0.00059

Labour 0.33373*** 0.93083*** 0.08254

Chemicals -0.09203 -0.31124 0.01969

Materials 0.01617 0.18733*** -0.00837

Land*Land -0.01584 -0.04278 -0.03929*

Capital*Capital 0.00839*** -0.00397 0.01740***

Labour*Labour 0.05624*** 0.02465** 0.04357***

Chemicals*Chemicals 0.02630*** 0.01648*** 0.01517***

Materials*Materials 0.00460*** 0.01186*** 0.00495***

Land*Capital 0.00309 -0.04918** 0.02142

Land*Labour -0.08434*** -0.02461 0.02305

Land*Chemicals -0.00368 0.01169 0.00592

Land*Materials -0.00063 0.03732*** -0.00662*

Capital*Labour 0.00671 0.00749 -0.00850

Capital*Chemicals -0.00216 0.06074*** -0.01868**

Capital*Materials -0.00499*** 0.00829** -0.00179

Labour*Chemicals 0.01181 -0.07179*** -0.00205

Labour*Materials 0.00064 -0.05202*** 0.00081

Chemicals*Materials 0.00342* -0.00419 0.00453

Time 0.13952*** -0.08881*** 0.01356

Time*Time -0.00202*** 0.00460*** 0.00107***

Time*Land 0.01162*** 0.00766 0.01266***

Time*Capital 0.00162 0.00381** -0.01004***

Time*Labour 0.00027 0.00412 -0.00128

Time*Chemicals -0.01305*** -0.00701* -0.20857D-04

Time*Materials -0.00028 -0.00027 0.00063**

Number of observations / average group size 6968 / 3.93 1132 / 2.99 6096 / 2.38

R-squared / R-bar squared 0.9822 / 0.9759 0.9455 / 0.9174 0.9905 / 0.9834

Rho squared (residual variation) 0.7948 0.7832 0.8050

R-squared (within groups var) 0.5746 0.2957 0.4941

Hausman Test 439.95*** 299.74*** 412.73***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

126 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.9. UK cereal farms: Elasticities for classes

LCM panel translog reduced model, 1995 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.47028*** 0.16049*** 0.31638***

Capital 0.10199*** 0.15290*** 0.11275***

Labour 0.21923*** 0.43206*** 0.27921***

Chemicals 0.25084*** 0.32389*** 0.35387***

Materials -0.00657*** -0.02315** -0.00182

Returns-to-scale 1.03577*** 1.04620*** 1.06039***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.13.10. UK cereal farms: Class identification - mean values indices

Mean values1, 1995 to 2017

Class 1: Most productive (49.1%)

Class 2: Medium productive (8.0%)

Class 3: Least productive (42.9%)

Index 1 - Structure -0.1305 0.3184 0.0900

Index 2 - Environmental sustainability -0.1192 -1.2213 0.3631

Index 3 - Innovation-cooperation-commercialisation 0.3938 0.1148 -0.4823

Index 4 - Technology -0.0092 0.2023 -0.0271

Index 5 - Diversity 0.5828 -0.4305 -0.5862

Index 6 - Individual 0.9430 0.1679 -1.1090

Index 7 - Location 0.1199 0.0247 -0.1416

Index 8 - Household -0.1422 0.1257 0.1393

Index 9 - Financial 0.2329 -0.1754 -0.2429

Note: 1. At class means, scaled values.

Source: Estimations.

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13.3. UK mixed crop and livestock farms

Table A D.13.11. UK mixed crop and livestock farms: Descriptive statistics

Sample 1995 to 2017

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 4 061)

1st year (1995, n = 309)

Final year (2017, n = 194)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Crop output (EUR) 130 414 [0; 3 421 822]

66 027 [0; 472 752]

134 470 [0; 1 430 406]

Livestock output (EUR) 282 697 [0; 2 877 746]

147 453 [3 540; 1 293 517]

171 441 [0; 2 017 617]

Total output (EUR) 482 253 [7 024; 6 692 332]

222 875 [8 057; 1 576 356]

356 843 [28 639; 2 932 713]

Land (ha) 208.9 [0.6; 1 278.3]

156.24 [0.6; 1 082.7]

198.6 [27.4; 1 035.4]

Livestock Units (number) 247.083 [3.24; 2 601]

184.608 [8.85; 1 081.955]

149.643 [10.2; 893.86]

Capital depreciation (EUR) 43 838 [273; 612 719]

19 961 [0; 134 896]

42 114 [564; 612 719]

Hired labour (AWU) 0.4819 [0.0057; 4.4609]

0.1977 [0.0345; 1.2412]

0.1736 [0.0206; 0.8048]

Family labour (AWU) 3.7197 [0.0443; 34.4291]

3.2771 [0.5727; 20.5769]

2.6679 [0.3171; 12.3738]

Materials (EUR) 32 021 [0; 187 732]

14 271 [49; 107 813]

21 530 [0; 151 870]

Stocking density (LU per ha) 2.13 [0.02; 140.17]

1.89 [0.20; 140.17]

0.86 [0.07; 3.47]

Organic (0-1 probability) 0.0069 [0; 1]

0 [0;1]]

0.1289 [0; 1]

Total assets (EUR) 2 037 169 [49 133; 16 499 848]

817 632 [11 421; 10 331 958]

2 591 980 [153 848; 16 499 848]

Age (years) 55 [23; 87]

57 [26; 89]

59 [23, 89]

128 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.12. UK mixed crop and livestock farms: Latent class estimates

LCM panel translog reduced model, 1995 to 2017

Total output Class 1 Class 2 Class 3

Constant 9.51781*** 9.26260*** 9.04338***

Land 0.04293 -0.13707 0.12749

Capital 0.03210 -0.35359*** -0.25607***

Labour 0.28530** 0.63464*** 0.43056***

Livestock -0.07739 0.63218** -0.05077

Land*Land -0.00329 0.01441 -0.00050

Capital*Capital 0.02084 0.03449*** 0.03562***

Labour*Labour -0.02240 0.00362 0.09397***

Livestock*Livestock 0.02045 -0.02684 0.02236

Time 0.00291 -0.08242 0.08375**

Time*Time 0.00042 0.00692*** -0.00157***

Time*Land 0.00302 0.00423 0.01450**

Time*Capital -0.00484 0.00112 -0.01041**

Time*Labour 0.01851*** -0.01211 -0.01868***

Time*Livestock 0.00128 -0.00671 0.00717

Sigma 0.38162*** 0.51336*** 0.32114***

Class Membership Vector

Constant -0.44938 -1.42759***

Index 1 - Structure -0.57299*** 0.07750

Index 2 - Environmental sustainability -0.73637*** -0.17450

Index 3 - Innovation-cooperation-commercialisation -0.03019 -0.03539

Index 4 - Technology 0.33538** 0.01515

Index 5 - Diversity -0.89522*** -0.08912

Index 6 - Individual -0.07590 -0.42470

Index 7 - Location 0.15501 -0.96490***

Index 8 - Household 0.27503 0.39570

Index 9 - Financial 0.07949 -0.07599

Log-Likelihood Function -1666.26278

Inf.Cr.AIC / AIC/N 3468.5 / 0.854

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.13.13. UK mixed crop and livestock farms: Full production function estimates

Fixed-effects panel translog model per class, 1995 to 2017

Total output Class 1 Class 2 Class 3

Land -1.11251*** 0.34676 0.02005

Capital -0.24801 0.80235 0.16533

Labour 0.74439 1.32478 -0.18409

Livestock 0.07494 0.15050 0.79024***

Land*Land 0.07829*** -0.01474 0.12782***

Capital*Capital 0.02091 -0.02596 0.00337

Labour*Labour 0.02146 0.27930 -0.06130

Livestock*Livestock -0.00567 -0.10066 -0.06172***

Land*Capital 0.03098 -0.06264 -0.08023***

Land*Labour -0.07392 -0.34520 -0.16087***

Land*Livestock 0.04216 0.25863 -0.06275

Capital*Labour -0.05601 0.08724 0.05866*

Capital*Livestock -0.00786 -0.02001 0.04301

Labour*Livestock 0.05956 -0.15462 0.15061***

Time 0.06474** -0.20569** 0.12691***

Time*Time 0.00065*** 0.00901*** -0.00338***

Time*Land -0.00185 -0.00782 0.01250***

Time*Capital -0.00660** 0.00066 0.00076

Time*Labour 0.00629 0.00525 -0.00352

Time*Livestock 0.00169 0.02470 -0.01242***

Number of observations / average group size 1149 / 2.70 1187 / 1.91 1726 / 3.12

R-squared / R-bar squared 0.9811 / 0.9691 0.9196 / 0.8258 0.9708 / 0.9563

Rho squared (residual variation) 0.9222 0.6874 0.8621

R-squared (within groups var) 0.4388 0.1318 0.3131

Hausman Test 134.18*** 37.29** 146.02***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.13.14. UK mixed crop and livestock farms: Elasticities for classes

LCM panel translog reduced model, 1995 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.05400* 0.02206 0.36526***

Capital 0.39059*** 0.29891*** 0.26082***

Labour 0.49968*** 0.57586*** 0.24665***

Livestock 0.15234*** 0.34281*** 0.27453***

Returns-to-scale 1.09661*** 1.23964*** 1.11916***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

130 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.15. UK mixed crop and livestock farms: Class identification - mean values

indices

Mean values1, 1995 to 2017

Class 1: Most productive (26.7%)

Class 2: Least productive (38.9%)

Class 3: Medium productive (34.4%)

Index 1 - Structure -0.7654 0.2674 0.3259

Index 2 - Environmental sustainability -0.5113 -0.0847 0.3989

Index 3 - Innovation-cooperation-commercialisation 0.6746 -0.7188 0.0235

Index 4 - Technology 0.5223 -0.3643 -0.0972

Index 5 - Diversity -0.7949 0.0828 0.4725

Index 6 - Individual 0.3098 -1.1939 0.6152

Index 7 - Location 0.3987 -1.6130 0.8443

Index 8 - Household -0.0365 0.3370 -0.2076

Index 9 - Financial 0.3738 -0.7770 0.2177

Note: 1. At class means, scaled values.

Source: Estimations.

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13.4. UK pig farms

Table A D.13.16. UK pig farms: Descriptive statistics

Sample 1995 to 2017

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full sample (n = 1 723)

1st year (1995, n = 76)

Final year (2017, n = 68)

Statistical measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (EUR) 458 481 [0; 22 344 642]

302 752 [23 826; 1 185 602]

895 053 [0; 21 369 219]

Total output (EUR) 500 040 [4 800; 23 003 081]

318 726 [25 379; 1 233 729]

1 006 305 [7 386; 21 400 826]

Land (ha) 41.4 [0; 795.5]

20.2 [0; 185.2]

82.0 [0; 795.4]

Livestock Units (n) 438.8 [0.9; 13 784.0]

279.6 [29.4; 1 153.8]

792.9 [31.6; 13 784.0]

Capital depreciation (EUR) 31 903 [0; 2 999 868]

13 078 [1 526; 60 569]

97 574 [117; 2 999 868]

Hired labour (AWU) 0.5274 [0.0407; 9.9917]

0.6361 [0.1614; 2.5786]

1.1367 [0.1004; 14.8174]

Family labour (AWU) 3.4905 [0.2693; 66.1333]

2.6779 [0.6795; 10.8568]

4.0072 [0.3541; 52.2331]

Materials (EUR) 43 788 [0; 1 995 256]

18 984 [970; 75 974]

86 228 [0; 1 877 663]

Stocking density (LU per ha) 56.86 [0; 4 363.2]

106.04 [0; 4 124.45]

39.12 [0; 977.83]

Organic (0-1 probability) 0.0023 [0; 1]

0 [0; 0]

0.0147 [0; 1]

Total assets (EUR) 813 888 [2 517; 25 239 396]

391 500 [48 812; 1 925 925]

2 209 997 [45 008; 25 239 396]

Age (years) 52 [24; 85]

49 [25; 79]

57 [40, 73]

132 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.17. UK pig farms: Latent class estimates

LCM panel translog reduced model, 1995 to 2017

Total output Class 1 Class 2 Class 3

Constant 10.4023*** 4.42434*** 8.10375***

Land -0.11139*** -0.01347 -0.45919***

Capital 0.01393 0.20049*** -0.01221

Labour 0.63354*** 0.02313 1.42458***

Livestock -0.12216* 0.43032*** 0.07632

Material -0.45191*** 0.05911 0.08680

Land*Land 0.01281*** 0.01021*** 0.11786***

Capital*Capital 0.01897** -0.00896*** -0.01707*

Labour*Labour -0.09364*** 0.04253*** -0.26440***

Livestock*Livestock 0.00099 -0.05082*** -0.00061

Material*Material 0.03852*** 0.03680*** 0.01515

Time 0.21245*** 0.07390*** -0.00139

Time*Time -0.00012 0.00061*** -0.00567***

Time*Land 0.00236* 0.41361D-04 -0.00081

Time*Capital -0.01612*** 0.00064 0.02076***

Time*Labour 0.00772** 0.00344 -0.01442

Time*Livestock 0.00777*** 0.01963*** 0.00787

Time*Material -0.00670*** -0.01673*** -0.00276

Sigma 0.20180*** 0.13468*** 0.24595***

Class Membership Vector

Constant 2.48127*** 3.11818*** ---

Index 1 - Structure -1.43599*** -0.60456 ---

Index 2 - Environmental sustainability 0.91476*** 1.00186*** ---

Index 3 - Innovation-cooperation-commercialisation 0.00114* 0.00157*** ---

Index 4 - Technology 1.87048*** 1.70000*** ---

Index 5 - Diversity 0.58404*** -0.42199** ---

Index 6 - Individual 0.56844 0.13353 ---

Index 7 - Location -1.18870*** -0.81064*** ---

Index 8 - Household -0.48863** -0.39600** ---

Index 9 - Financial 0.00014 -0.00032 ---

Log-Likelihood Function 275.11309

Inf.Cr.AIC / AIC/N -396.2 / -0.230

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.13.18. UK pig farms: Full production function estimates

Fixed-effects panel translog model per class, 1995 to 2017

Total output Class 1 Class 2 Class 3

Land -0.53238** 0.10649 -3.74694

Capital -0.27960 0.24488* 0.61246

Labour 0.39234 1.17817*** -1.70492

Livestock 0.12913 0.48825*** 2.09265**

Material 0.04435 -0.75902*** -0.62434

Land*Land 0.08052*** 0.00646 0.92531

Capital*Capital 0.03233 -0.00244 0.00336

Labour*Labour 0.00185 0.12008*** -0.40995

Livestock*Livestock 0.00065 -0.02550 0.02241

Material*Material 0.02809** 0.07659*** 0.05683

Land*Capital 0.00941 -0.00101 0.09213

Land*Labour -0.14668*** 0.01777 0.07806

Land*Livestock 0.03868* 0.00543 0.01453

Land*Material -0.00379 -0.01146 -0.23874***

Capital*Labour -0.03241 -0.00814 0.29623

Capital*Livestock -0.01956 -0.02535 -0.28206

Capital*Material -0.01001 -0.00760 -0.00371

Labour*Livestock 0.04114 -0.02053 -0.08827

Labour*Material 0.04399 -0.09578*** 0.14984

Livestock*Material -0.01365 -0.00030 0.05328

Time 0.14317*** 0.03453** -0.09599

Time*Time 0.00031 0.00082*** -0.00297**

Time*Land -0.00114 0.00115 -0.00629

Time*Capital -0.00408 0.00191* 0.02527**

Time*Labour 0.00379 -0.00179 -0.05915*

Time*Livestock 0.00486 0.01244*** -0.01565

Time*Material -0.01026*** -0.01178*** 0.01071

Number of observations / average group size 487 / 2.99 1117 / 4.03 119 / 2.02

R-squared / R-bar squared 0.9945 / 0.9909 0.9923 / 0.9895 0.9967 / 0.9881

Rho squared (residual variation) 0.9147 0.6841 0.9987

R-squared (within groups var) 0.8454 0.8621 0.8629

Hausman Test 53.94*** 51.66*** 41.30***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

134 TAD/CA/APM/WP(2020)2/ANN/FINAL

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Table A D.13.19. UK pig farms: Elasticities for classes

LCM panel translog reduced model, 1995 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.05576*** 0.02743*** -0.06798***

Capital 0.05620 0.04095*** -0.04972

Labour 0.55756*** 0.13884*** 0.94801***

Livestock 0.06884** 0.07849*** 0.16316***

Material 0.29066*** 0.75913*** 0.36222***

Returns-to-scale 1.02902*** 1.04484*** 1.35568***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.13.20. UK pig farms: Class identification - mean values indices

Mean values1, 1995 to 2017

Class 1: Most productive (28.3%)

Class 2: Medium productive (64.8%)

Class 3: Least productive (6.9%)

Index 1 - Structure -0.6602 0.2223 0.6147

Index 2 - Environmental sustainability -0.2218 0.1646 -0.6373

Index 3 - Innovation-cooperation-commercialisation 0.7017 -0.2994 -0.4508

Index 4 - Technology 0.4337 -0.1254 -0.5977

Index 5 - Diversity 0.1142 -0.0493 -0.0048

Index 6 - Individual 0.3127 -0.1640 0.2592

Index 7 - Location 0.2627 -0.1677 0.4995

Index 8 - Household 0.0385 -0.0668 0.4697

Index 9 - Financial 0.2275 -0.0975 -0.0671

Note: 1. At class means, scaled values.

Source: Estimations.

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13.5. UK poultry farms

Table A D.13.21. UK poultry farms: Descriptive statistics

Sample 1995 to 2017

Note: AWU: Annual Work Unit. LU per ha: Livestock Unit per hectare. 1. Values are per year.

Full Sample (n = 4 415)

1st Year (1995, n = 39)

Final Year (2017, n = 101)

Statistical Measure Mean [Min; Max]

Mean [Min; Max]

Mean [Min; Max]

Variable1

Livestock output (EUR) 283 423 [0; 10 371 194]

386 969 [28 586; 1 984 565]

872 312 [0; 10 371 194]

Total output (EUR) 308 087 [3 852; 10 422 865]

405 511.7 [29 445; 1 992 679]

964 810 [39 859; 10 422 865]

Land (ha) 74.7 [0; 728.0]

18.2 [0; 155.6]

54.3 [0; 625.8]

Livestock Units (number) 228.6 [0.1; 5 489]

495.1 [33.9; 3 903.4]

406.6 [5.4; 4 371.4]

Capital depreciation (EUR) 24 242 [0.0; 1 304 185]

19 517 [523; 85 717]

79 865 [501; 1 304 185]

Hired labour (AWU) 0.2028 [0.0118; 4.4505]

2.1624 [0.2969; 10.1663]

0.7681 [0.0878; 11.3961]

Family labour (AWU) 3.0747 [0.1782; 67.4722]

2.9024 [0.3985; 13.6451]

3.9491 [0.4513; 58.5929]

Materials (EUR) 28 281 [0; 2 261 822]

14 180 [0; 89 134]

83 406 [0; 2 247 104]

Stocking density (LU per ha) 54.85 [0; 25 50]

39.37 [0; 440.16]

28.45 [0; 438.73]

Organic (0-1 probability) 0.0097 [0; 1]

0 [0; 0]

0.0594 [0; 1]

Total assets (EUR) 775 726 [718; 17 456 163]

363 582 [15 239; 1 170 170]

1 871 262 [33 914; 17 456 163]

Age (years) 52 [21; 87]

50 [32; 69]

54 [31; 87]

136 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.13.22. UK poultry farms: Latent class estimates

LCM panel translog reduced model, 1995 to 2017

Total output Class 1 Class 2 Class 3

Constant 9.05249*** -20.0342*** 5.35806***

Land -0.15587*** -0.84057*** -0.00059

Capital 0.48601*** 0.85192*** -0.00588

Labour 0.05050 0.17527 0.05785**

Livestock 0.77479*** -0.27732 0.42106***

Material -0.92910*** 4.23874*** 0.00288

Land*Land 0.02571*** 0.06189*** 0.01070***

Capital*Capital -0.01455*** -0.03613** 0.00441**

Labour*Labour 0.02117** -0.03894 0.01386*

Livestock*Livestock -0.04069*** 0.06627** -0.02927***

Material*Material 0.05572*** -0.14595*** 0.03604***

Time 0.09848*** 0.42286*** 0.17840***

Time*Time -0.00089*** 0.00097 0.00011

Time*Land 0.00310*** 0.04839*** -0.00190**

Time*Capital 0.00916*** -0.00282 -0.00343***

Time*Labour 0.01273*** 0.01074 0.00751***

Tume*Livestock -0.01429*** -0.02698** -0.00907***

Time*Material -0.00795*** -0.04245*** -0.00793***

Sigma 0.20024*** 0.27010*** 0.19376***

Class Membership Vector

Constant -1.03561*** -2.40424*** ---

Index 1 - Structure -0.39863*** 0.56664** ---

Index 2 - Environmental sustainability -0.00848 0.21066 ---

Index 3 - Innovation-cooperation-commercialisation 0.00027 0.00013 ---

Index 4 - Technology -0.93599*** -0.24677 ---

Index 5 - Diversity 0.70326*** 0.30987** ---

Index 6 - Individual -0.40137*** 0.12038 ---

Index 7 - Location 0.71381*** -0.55759** ---

Index 8 - Household 0.00305 0.57347*** ---

Index 9 - Financial 0.22033D-04 0.77107*** ---

Log-Likelihood Function 166.23029

Inf.Cr.AIC / AIC/N -178.5 / -0.040

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

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Table A D.13.23. UK poultry farms: Full production function estimates

Fixed-effects panel translog model per class, 1995 to 2017

Total output Class 1 Class 2 Class 3

Land -0.19718 4.27890 0.12446

Capital 0.55458** 17.0272** -0.03470

Labour 1.64914*** -8.83265 0.60872***

Livestock -0.05482 -1.57666 0.84796***

Material -1.64057*** 0.85454 -0.65551***

Land*Land 0.00453 1.44679 0.01543***

Capital*Capital -0.01401 -0.33127 -0.00089

Labour*Labour 0.16343*** 0.07722 0.03964***

Livestock*Livestock -0.00189 1.63119** 0.01486

Material*Material 0.10896*** 0.50430 0.06307***

Land*Capital 0.02036** -0.25910 0.00063

Land*Labour -0.05325*** 3.00937* -0.01203

Land*Livestock 0.04105*** -2.23004* 0.00393

Land*Material -0.01270 -0.29649 -0.01656**

Capital*Labour 0.07638*** 1.14365 0.01742

Capital*Livestock -0.00961 -0.20359 -0.03938***

Capital*Material -0.03305* -1.00231*** 0.02163***

Labour*Livestock -0.06743** -2.21227** 0.01248

Labour*Material -0.18914*** -0.49920 -0.06693***

Livestock*Material 0.03115 -0.02175 -0.04422***

Time 0.07009** 1.10592 0.05242***

Time*Time -0.00034 0.00865 -0.31108D-04

Time*Land -0.00259* -0.12895* 0.00102

Time*Capital 0.00956*** -0.07478 -0.00192

Time*Labour 0.00386 0.20599 0.00211

Time*Livestock -0.00516* 0.10232 0.00228

Time*Material -0.00932*** -0.06393 -0.00317**

Number of observations / average group size 924 / 2.46 157 / 1.57 3334 / 3.15

R-squared / R-bar squared 0.9924 / 0.9865 0.9938 / 0.9678 0.9897 / 0.9848

Rho squared (residual variation) 0.8724 0.9992 0.7716

R-squared (within groups var) 0.7341 0.8191 0.6933

Hausman Test 49.69*** 62.13*** 61.94***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

138 TAD/CA/APM/WP(2020)2/ANN/FINAL

DRIVERS OF FARM PERFORMANCE Unclassified

Table A D.13.24. UK poultry farms: Elasticities for classes

LCM panel translog reduced model, 1995 to 2017

Wald procedure based on delta method at sample means

Total output Class 1 Class 2 Class 3

Land 0.06522*** -0.06200 0.06239***

Capital 0.38188*** 0.20700*** 0.04896***

Labour 0.39330*** 0.19710*** 0.14275***

Livestock -0.00534 0.12016* 0.05591***

Material 0.20212*** 1.01137*** 0.74483***

Returns-to-scale 1.03719*** 1.47363*** 1.05485***

Note: *significant at 10%, **significant at 5%, ***significant at 1%.

Source: Estimations.

Table A D.13.25. UK poultry farms: Class identification - mean values indices

Mean values1, 1995 to 2017

Class 1: Most productive (21%)

Class 2: Least productive (4%)

Class 3: Medium productive (75%)

Index 1 - Structure -0.7182 0.5972 0.1709

Index 2 - Environmental sustainability -0.7333 0.2148 0.1931

Index 3 - Innovation-cooperation-commercialisation 0.6797 -0.3500 -0.1707

Index 4 - Technology -0.0845 0.2822 0.0101

Index 5 - Diversity 0.1285 0.0235 -0.0367

Index 6 - Individual 0.5209 -0.5220 -0.1198

Index 7 - Location 0.8777 -0.8127 -0.2050

Index 8 - Household 0.0713 1.0057 -0.0671

Index 9 - Financial 0.1592 0.3956 -0.0657

Note: 1. At class means, scaled values.

Source: Estimations.