Factors affecting the situation of economically weak farms in Switzerland

Abstract

Data from the Farm Accountancy Data etwork (FAD) over the period 2005 to 2010 were used to determine the factors that contribute to the financial performance of economically weak farms in Switzerland. The study analyses the economic performance of all farms represented in the 2005-2010 sample period found in terms of work income per family labour unit. To address this issue, the farms were split into two groups: the successful Group A, comprising farms with incomes above CHF 18,300, and the unsuccessful Group B, in which farms remain below this threshold. The differences between the farms in Group A and B were analysed using a panel data logit models. The study found ample evidence that full-time farms tend to be more successful in belonging to the successful group A than farms run only on a part-time basis. The analysis reveals that farms with specialist crops (fruit, vegetables, vines) and finishing farms (pigs and poultry) more frequently belong to the successful Group A than those geared to a different type of production (e.g. cattle rearing or dairy farming).