Interdependence between Energy Cost and Financial Situation of the EU Agricultural Farms—Towards the Implementation of the Bioeconomy

Abstract

The concept of a bioeconomy can be an opportunity for agricultural and rural development. The objective of this research is to identify groups of family farms which are able to implement the principles of this new development model based on a bioeconomy and to reduce operating costs, especially energy. The time scope of this study covers the period 2004–2020. The data source is the Farm Accountancy Data Network. On the basis of the values of output, family farm income, cash flow, net investment and total inputs (including energy costs), the classes of family farms are indicated. The ranking is based on geographical criteria and the results of panel data models with fixed effects which measure the relationship between energy costs and production, income, cash flow and net investment according to the economic size of the family farm. The results obtained are discussed within the framework of recommendations of the European Commission.