Eco-Efficiency and Human Capital Efficiency on the Example of Small and Medium-Sized Family Farms in the Selected European Countries

Abstract

Small and medium-sized family farms are the place of life and source of income for about half of the population. The aim of the analysis was to determine the relationship between Eco-Efficiency, Human Capital Efficiency in small and medium-sized family farms. The analyses were carried out using an economic measure (value of agricultural production per work hour calculated per 1 ha) and synthetic measures: human capital and environmental measures. The synthetic measures were determined using the CRITIC-TOPSIS method by defining weights for variables used in the synthetic measures. The analyses covered five countries, namely: Lithuania (960 farms), Moldova (532 farms), Poland (696 farms), Romania (872 farms), and Serbia (524 farms). All the countries qualified for analysis are characterised by a high fragmentation of agricultural holdings. The analyses carried out allowed us to formulate the following conclusions: the Eco-Efficiency and Human Capital Efficiency indexes increase with area for small and medium-sized family agricultural farms. An increase in the Eco-Efficiency index with an increase in farm area leads to a suspicion that the smaller the farm area is, the more extensive the agricultural production being carried out. In addition, an increase in human capital efficiency with an increase in the area of a farm indicates that there is inefficiency in the utilisation of human capital resources in the agricultural farms studied.