<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The article examines trends in changes in relations among three production factors (land, labor, and capital) in agriculture in the selected European Union countries. For the purpose, the assumptions regarding the direction and the mechanism of changes in the relations were verified empirically. It was assumed that the basis of the mechanism is the ratio of changes in factor productivity to changes in the prices (remuneration) of these factors. Trends in production factors were verified empirically using agricultural economic accounts as well as statistics on labor and land inputs in agriculture collected by Eurostat. The trends in changes in the relations among production factors correspond to the capital-intensive stage of growth in agriculture. A strong trend of decline in the labor factor in agriculture was demonstrated along with the reduction of land in the EU agriculture. The changes were accompanied by diversified involvement of the capital factor in agriculture. With a constant increase in the volume of agricultural production, there is a corresponding increase in the productivity of the production factors. The increase is the smallest in the case of the capital factor, because it performs not only a growth function, but also is a substitute for the decline in other factors. An increased productivity of the production factors is related to an increase in their remuneration reflected by an increase in their prices. The deviations from capital-intensive growth in agriculture observed in the empirical study indicate other factors influencing the remuneration of production factors in agriculture.</p>
</abstract>

The article examines trends in changes in relations among three production factors (land, labor, and capital) in agriculture in the selected European Union countries. For the purpose, the assumptions regarding the direction and the mechanism of changes in the relations were verified empirically. It was assumed that the basis of the mechanism is the ratio of changes in factor productivity to changes in the prices (remuneration) of these factors. Trends in production factors were verified empirically using agricultural economic accounts as well as statistics on labor and land inputs in agriculture collected by Eurostat. The trends in changes in the relations among production factors correspond to the capital-intensive stage of growth in agriculture. A strong trend of decline in the labor factor in agriculture was demonstrated along with the reduction of land in the EU agriculture. The changes were accompanied by diversified involvement of the capital factor in agriculture. With a constant increase in the volume of agricultural production, there is a corresponding increase in the productivity of the production factors. The increase is the smallest in the case of the capital factor, because it performs not only a growth function, but also is a substitute for the decline in other factors. An increased productivity of the production factors is related to an increase in their remuneration reflected by an increase in their prices. The deviations from capital-intensive growth in agriculture observed in the empirical study indicate other factors influencing the remuneration of production factors in agriculture.

Changes in Production Factor Relations and their Determinants in Agriculture in Selected European Union Countries

Department of Agricultural Holdings Accountancy

Department of Agricultural Markets and Quantitative Methods

Zagadnienia Ekonomiki Rolnej

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

The article examines trends in changes in relations among three production factors (land, labor, and capital) in agriculture in the selected European Union...

Changes in Production Factor Relations and their Determinants in Agriculture in Selected European Union Countries

Published Online: Dec 22, 2023

Page range: 26 - 51

Received: Jun 30, 2023

Accepted: Dec 11, 2023

DOI: https://doi.org/10.30858/zer/176771

Keywords
productivity of production factors, factors relations, production factors remuneration, Herlemann–Stamer model

© 2023 Zbigniew Floriańczyk et al., published by Sciendo

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

Changes in Production Factor Relations and their Determinants in Agriculture in Selected European Union Countries

Published Online: Dec 22, 2023

Page range: 26 - 51

Received: Jun 30, 2023

Accepted: Dec 11, 2023

DOI: https://doi.org/10.30858/zer/176771

Keywordsproductivity of production factors, factors relations, production factors remuneration, Herlemann–Stamer model

© 2023 Zbigniew Floriańczyk et al., published by Sciendo

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

Keywords
productivity of production factors, factors relations, production factors remuneration, Herlemann–Stamer model