Efficiency analysis of a sheep farm

Our study shows an analysis of a sheep farm. The present farm was chosen for analysis due to the fact that it is run under special natural conditions and as for the sheep farming, it has quite a few non-typical features. These raise some economic issues, which have to be analysed, questions have to be answered that may result in useful conclusions. Since sheep farming does not seem to be able to overcome its difficulties on its own, the EU support system could give the initial step necessary for the success and would also help to sustain sheep farms. The amount of grant that is usual in the EU could provide for the sustainability of this sector, the relative safety of sales, the equal chances of the farms operating under different capabilities and if possible it could also reduce the fluctuation in the producers’ prices. In 2005 the farm could only apply for the single area payment and was not entitled to receive the grant based on the number of milk-ewe older than one year. This condition changed by 2006 and therefore they had access to those grants. In the following years if support funds could be used at a maximum level, the earning ability of the sector would change significantly. Since 2006 the available support funds can be requested from several sources for the above mentioned farm. If these sources can be assured for the farm it is also necessary to work out the professional conditions and efficiency and profitability shall be taken into consideration