MARGIN AND COSTS DISTRIBUTION MODELS IN SELECTED TYPOLOGIES OF MEDITERRANEAN AGRICULTURAL ENTERPRISES

C.R. García, G. Pérez, V. Gavilán
Since 1991 three macrosurveys were carried out in Granada, a Mediterranean province in the south of Spain. With a wide variety of climates, from mild subtropical to high mountain ones, Granada has many "agricultures" better than only one. This special frame made the province of Granada ideal as a representative region of the mediterranean agrarian sector in Spain (Loring et al., 2001).
Simplifying, our research has a double objective: first, to design and develop an information system to support political decisions (García et al., 1996) and second, to know the structure of our agrarian enterprises (García et al., 2001; Loring et al., 1993 and Ramos et al., 1999).
From the perspective of the politicians the economic success of a decision is as important as the political success. Thus, the key of any policy measure is the analysis of its distributive effects on income and this is the same for any global economic policy. This analysis that it has been relatively forgotten by the literature. Costs and income distributions and models are decisive tools for designing and carrying out agricultural policies in order to increase farmers’ economic profits and rural stability.
Using standard margin to estimate the income of agricultural enterprises, our research shows a beta distribution with some irregularities due to technology related with horticultural and fruit farms. Mixed agricultural enterprises (cereals, olive trees, oil seeds and fruits) show a very important dependence on subsidies. The CAP of UE lets small farmers maintain their cultivation structure and land property. Without subsidies labour costs in more than 50% of farms cannot be paid and the gross margin becomes negative. In this economic situation rural development of large regions in the south of Spain is difficult.
García, C.R., Pérez, G. and Gavilán, V. (2001). MARGIN AND COSTS DISTRIBUTION MODELS IN SELECTED TYPOLOGIES OF MEDITERRANEAN AGRICULTURAL ENTERPRISES. Acta Hortic. 566, 461-466
DOI: 10.17660/ActaHortic.2001.566.59
https://doi.org/10.17660/ActaHortic.2001.566.59
Income distributions, agrarian subsidies, agricultural policies
English

Acta Horticulturae