<abstract xmlns="http://www.w3.org/1999/xhtml"><p>It is proved that the effective development of small farms is ensured by the level of their resource supply and the balance of production resources, the efficiency of which we have been carried out on the basis of the calculation of allocative and technical efficiency. According to the obtained equation of production function, we conclude that the most elastic factor is the cost of seeds, fertilizers, feed and other material costs. An increase of this resource by 1% will lead to an increase in the result by 0.395%. The smallest value of the coefficient of elasticity was obtained from such production resource as arable land. The obtained model shows that there is a decreasing effect on the scale, since the sum of the regression coefficients is less than 1 (equal to 0.962), which means that if the resources increase in some proportion, then the volumes of revenue increase in a smaller proportion. It is substantiated that allocative inefficiency is caused not by the excessive use of resources in small farms, but by the higher prices for them and the underestimated agricultural output.</p></abstract>

It is proved that the effective development of small farms is ensured by the level of their resource supply and the balance of production resources, the efficiency of which we have been carried out on the basis of the calculation of allocative and technical efficiency. According to the obtained equation of production function, we conclude that the most elastic factor is the cost of seeds, fertilizers, feed and other material costs. An increase of this resource by 1% will lead to an increase in the result by 0.395%. The smallest value of the coefficient of elasticity was obtained from such production resource as arable land. The obtained model shows that there is a decreasing effect on the scale, since the sum of the regression coefficients is less than 1 (equal to 0.962), which means that if the resources increase in some proportion, then the volumes of revenue increase in a smaller proportion. It is substantiated that allocative inefficiency is caused not by the excessive use of resources in small farms, but by the higher prices for them and the underestimated agricultural output.

Features of Formation and Use of Production Resources by Small Farms in Ukraine

Bila Tserkva National Agrarian University

Visegrad Journal on Bioeconomy and Sustainable Development

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Features of Formation and Use of Production Resources by Small Farms in Ukraine"}

It is proved that the effective development of small farms is ensured by the level of their resource supply and the balance of production resources, the...

Features of Formation and Use of Production Resources by Small Farms in Ukraine

Published Online: Sep 22, 2020

Page range: 69 - 74

DOI: https://doi.org/10.2478/vjbsd-2019-0013

Keywords
small farms, technical and allocative efficiency, production resources

© 2019 Olga Myronivna Varchenko et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Features of Formation and Use of Production Resources by Small Farms in Ukraine

Published Online: Sep 22, 2020

Page range: 69 - 74

DOI: https://doi.org/10.2478/vjbsd-2019-0013

Keywordssmall farms, technical and allocative efficiency, production resources

© 2019 Olga Myronivna Varchenko et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
small farms, technical and allocative efficiency, production resources