DOI: https://doi.org/10.5513/JCEA01/23.2.3464
Original scientific paper
Profitability of farms receiving subsidies for protection of semi-natural and natural grasslands habitats in the Slovak Republic
2022, 23 (2) p. 455-463
Tomáš Rábek, Ivan Holúbek, Anna Látečková, Jozef Palkovič
Abstract
For maintenance of biodiversity, mainly in sites of European importance and in hight natural value areas, is important the management of selected semi-natural and natural grasslands (SNaNG). In the first part of the paper we define SNaNG habitats in 7 categories (A-G), grouping several types of habitats. The categories were defined due to financing under the Rural Development Programme (RDP). Then, we provide their management conditions for 2014-2020, applied since 2015. The conditions must be applied by farms in order to claim subsidies within the submeasure protection of SNaNG habitats. The support belongs to the non-project measures of the RDP. In the last part of paper, we evaluated and analysed selected two financial ratios of profitability (return on equity and basic earning power) of a set of farms in Slovakia in year 2019. The farms are divided into two groups (supported farms receiving subsidies for protection of SNaNG habitats and unsupported farms without these subsidies) on the base of the Logit model. The data used for the analysis were obtained from the Information letters of the Ministry of Agriculture and Rural Development of the Slovak Republic (MARD SR). The supported farms proved lower profitability in both ratios, but only in return on equity has been statistically significant difference (at the 90% confidence level). We can conclude that the subvention for protection of SNaNG habitats should be increased as the SNaNG habitats are also vital for non-productive ecosystem services (ES).
Keywords
grasslands habitats, support policy, profitability, ecosystem services, farms
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