New EU members struggle with lower farm efficiency, impacting competitiveness.
Efficiency of farm assets is crucial for successful farming. A study looked at EU agriculture from 1989 to 2005, focusing on how new member countries joining in 2004 affected asset and labor efficiency. The research found that farms in new member countries have lower equipment levels and use assets less efficiently than older member countries, making them less competitive. However, new member countries focused on improving arable farming, narrowing the gap in labor productivity compared to horticulture or animal husbandry. Large-scale farms in new member countries have the widest gap in labor productivity due to lower assets and capital efficiency.