THE FINANCIAL SITUATION OF AGRIBUSINESSES IN RELATION TO CLIMATIC CONDITIONS: EVIDENCE FROM THE V4 COUNTRIES.

The aim of the article is to provide a detailed statistical description and evaluation of the mutual relationship between the development of two types of agribusinesses' cash flows which represent the capacities of farms to save and self-finance in relation to changes in basic climatic parameters (i.e. temperature, precipitation). The calculations have been based on data obtained from the FADN (Farm Accountancy Data Network) and the CCKP (Climate Change Knowledge Portal). The figures on the V4 countries come from the period between 2004 and 2020. In terms of the net worth of agribusinesses and the values of their capital, V4 countries could be split into two groups. In Hungary and Poland, the development of temperature changes and the net worth or enterprise capital levels are moving in the same directions, while agribusinesses in Slovakia or Czechia, negative, but low correlation coefficients were measured. Regarding the relationship between cash flow and climatic conditions, we conclude that temperature changes are not happening to be a distinctive factor on the level of countries, but rather something that the whole Central European region has in common: the trend is suggesting the existence of a slight growing tendency and consequently pointing us to a direct relationship, but the nature of this relationship is rather weak and not indicative. The interaction of cash flow and of the development of precipitation levels is showing relatively more dynamics and fluctuations for all agro-businesses in the researched V4 countries. This results in a rising trend line where the yearly precipitation level is ranging from approximately 500 mm to 750 mm. Agrobusinesses, mostly in Czechia and Slovakia, in the years when precipitation levels exceed 750 mm per year report relatively lower levels of cash flows. [ABSTRACT FROM AUTHOR]