A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size

摘要

Organic farming represents an?environment-friendly alternative to?conventional farming techniques. The?aim of?this paper is to?assess whether there are differences in?financial performance of?the Czech agricultural enterprises as?measured by?financial analysis indicators in?relation to?the selected farming system (conventional vs. organic), the?farm size (with respect to?organic and conventional farms) and the?interaction of?these two factors in?the period 2012–2016. A three-step approach including two-way multivariate analysis of?variance (MANOVA), non-parametric two-way analysis of?variance (ANOVA), specifically the?Scheirer-Ray-Hare test, and post hoc Dunn’s test has?been employed. The?data sample comprises of?172?conventional and 136?organic farms, divided into three size categories. The?effect of?the selected farming system is manifested in?return on sales, cost ratios, and asset turnover ratio. The?farm size affects return on assets, cost ratios, liquidity and debt. The?interaction of?the factors has?only been detected as?regards return on assets.