Income on the family farms

Abstract

In the paper the problematic of measuring the economic effectiveness of the family farms is discussed. The base of the discussion is the theory, which treats the family farm as a whole of production-technical factors and farm household, and where household members often, with their non-agricultural activities, provide necessary income for its operation. After short overview of different methods for estimating farm income and economic status of family farms in Slovenia and some EU countries, the problem of comparative measuring of farm income from pure agricultural activities is discussed. Then the concept of “economic power of farm” and “index of economic power of farm –IGM” as its measure are introduced. At the end the usage of that index is demonstrated on example of some model farms.