Impact Analysis of the Young Farmers’ Support Program on Slovenian Dairy Sector Development Using Econometric Modeling Approach

Abstract

This study analyzes the effects that action 112 of the Rural Development Policy had on the socioeconomic status of Slovenian dairy farms. The data used in this paper were collected from Farm Accountancy Data Network (FADN), a database for applicants in action 112 (young farms transferees), from whose applications for participation in this action the data were obtained. Twenty-eight different econometric models were developed during the first stage of the research. The evaluation of the models was subsequently performed by applying valid statistical and econometric criteria. The results reveal the main positive effects that action 112 had on socioeconomic indicators of the dairy farms: number of full-time labor power, number of head of large livestock, total revenue (in euros) and net value added. Statistically significant differences in benefits from action 112 among dairy farms were determined by using two sets of dummy variables: region and level of education. The research in the field of the effect of the rural development policy action support of young farmers on socioeconomics performance of milk farms can make a significant contribution to developing the researchers’ work and policy makers’ decisions. Furthermore, this research is important from the agronomic point of view, since its results support two of the basic goals of Common agricultural policy after 2020: environmental care and conservation of landscape and biodiversity.