THE ANNALS OF “VALAHIA” UNIVERSITY OF TARGOVISTE 2017 DOI: 10.1515/agr-2017-0003 METHODS OF ASSESSING THE ECONOMIC EFFICIENCY OF SMALL AND MEDIUM FARMS Dragos PANAGORET, Ioana PANAGORET, Andreea PANAGORET Valahia University of Targoviste, Faculty of Sciences and Engineering Alexandria E-mail: ioana_panagoret@yahoo.com Abstract Farm profitability assessment is of particular importance, displaying its economic character. There are simple procedures for small farmers to carry out a correct analysis of the mode of land use and exploitation of animals, so that, by reorganizing the holding and proper management, to become profitable. Methodologically, this analysis consists of: identifying the factors influencing the level of yields per hectare; measure the influence of each factor on results achieved; establish critical points of the technical system of production; establishing the measures necessary to eliminate the weak elements of the system and design a new improved technical system for production for each crop; new design of new productions per hectare and of production costs, as well as evaluating the effectiveness of the extra production costs. Keywords: reed biomass (Phragmites australis), renewable energy, cultivation, Korça field. 1. INTRODUCTION Agricultural holdings are complex organizational forms of property, which utilise the land, animals and other means of production, interrelated in a unitary system, in view of the execution of works, provision of services and the effective obtaining of agricultural products (***). Depending on the economic activity, socio-professional structure and demographic dynamics, Kayser, in 1992, outlined the following areas: deep rural areas, the semi- agricultural rural, the rural in change, stagnation rural areas, the intermediate rural. By analyzing agricultural exploitations in our country, one can outline the multi-active character of the family, the subsistence role which the agricultural production of the holding plays and the mixed nature of the farm family income. These characteristics are found widespread throughout Romanian rural areas of the three main zones - plains, hills and mountains and are typical of suburban farms in rural areas, where retired persons, available employees (possibly unemployed) and households can be encountered in the same family. Pensioners, available persons and housekeepers handle the farm, as well as those employed in their spare time, a large part of the agricultural production serves for own consumption and productive human family, there may remain some availabilities for sale. These families are in permanent search of solutions to improve their household income. In these circumstances, the correct management by rational use of land holding and obtaining quality agricultural products, organic farming and creation of small and medium improved animal breeds are an alternative for people in this area. Alternatives to increase the economic efficiency of farms, as well as some incentives for farm consolidation, focusing on increasing the average size of the holding, on the necessary changes in the production structure and on the possibilities of encouraging associative forms (Luca, Cionga și Giurcă, 2012). In Western countries (here are considered, first of all, the European Union and the US), the best performing farms have proven to be the private-family farms, managed or leased by direct labor. In this type of productive activity, holdings combine with family life, work is performed almost entirely by family members, and employment (seasonal, mostly) is little used (Tofan, 2006). The rural economy must be transformed gradually from subsistence economy to competitive commercial economy (Tătaru, 2016). 2. MATHERIAL AND METHOD Assessing the profitability of an agricultural exploitation is starting with the analysis of the stage where it is in terms of economic results obtained in the present, so that the opportunities to improve these results on short and medium term can be analysed. Thus, an analysis of the manner in which the land is used, the assortment of plants, cultivated surfaces, obtained production and use of this production will be performed. Farm management must also include the default calculation of crop production and crop production index merchandise. Analyzing the animal production tangible results on global agricultural production can be obtained, ie its economic dimension. The analysis of the economic efficiency of the agricultural production obtained on the farm includes: analysis of production costs, gross margin analysis, profitability analysis and analysis of income parity.