Agricultural Resources and their Productivity: A Transatlantic Perspective
Purpose: The aim of the paper is to assess the production potential of the agricultural sector of the EU, including Poland, and the USA based on the assessment of resources and inputs of respective production factors, their relationships and their productivity, while also indicating changes in the farm structure and support policies addressing the agricultural sector. Design/Methodology/Approach: The volume of land and labor resources as well as capital input in agriculture are presented, which is followed by an evaluation of the ratios between inputs and their productivity. Analyses were also conducted on the farm structure. Changes in the agricultural support policy were analyzed using a selected set of OECD indicators. Findings: A stronger competitive position determined by more advantageous relationships between inputs, productivity and a greater scale of advanced concentration processes is found in the US agricultural sector. In the EU, despite evident structural transformation processes, a considerable gap is observed between agriculture of the EU-13 and that of the EU-15 in terms of both inputs and productivity. Although the share of financial support in total income of agricultural producers in the EU and the USA was decreasing, the income was nevertheless higher compared to that they would have attained without state intervention measures. Practical Implications: The study refers to the discussion on the competitive position of the EU and the USA on the international agricultural market and helps to answer the question: Are EU producers able to cope with the competitive pressure of the US agriculture? Originality/value: This is the first attempt to develop a comprehensive and up-to-date analysis of the agricultural potential and its productivity within the transatlantic partnership and rivalry, covering both the EU composed of 28 countries, including Poland, and the USA.