On-Farm Production of Renewable Energy in 2014–2022

The main purpose of this study is to present family farms as consumers and producers of renewable energies which provide them with an opportunity to reduce operating costs. The time
scope of the study is 2014–2022, and the Farm Accountancy Data Network is used as the data source. The following research methods were employed: comparative and descriptive analysis, intensity indicators, ranking assignment and panel regression. Based on the values of energy output and energy costs, the rankings revealed a strong position of the Netherlands and Germany. As demonstrated by the study, energy production and consumption volumes depend on the farms’ economic size, but are not impacted by production type. Another finding is that energy production covers only one-third of its costs. Also, both production volumes and costs were on a growth path on a year-over-year basis, with similar growth ratios. The European Union’s leaders in energy consumption and production are the Netherlands, Germany, Belgium, Denmark, Czech Republic, Hungary, Luxembourg, Slovakia and Sweden. The study included the structuring of panel models for energy output and costs and identified their determinants. Energy output depends on total inputs and grows as they grow. Energy costs, in turn, are related to utilized agricultural area, total output and family farm income. An important limitation of this study is that FADN is a provider of high-level data. Hence, it is impossible to tell what specific sources of renewable energy are used by farms, and how they are affected by such exogenous factors as climate, earmarked subsidies or energy policy. The findings from this study are discussed in the context of the European Commission’s recommendations laid down in the Bioeconomy Strategy of the EU (2013), the Seventh Environment Action Program, the New Innovation Agenda of the European Union, the Report “Transforming OurWorld: the United Nations 2030 Agenda for Sustainable Development” and the Circular Economy Action Plan.