Financial resources and farm performance: Empirical evidence from dairy farms in Kosovo

Abstract

Agriculture, including dairy farming, is a key sector for Kosovo's economy, but faces major challenges such as limited access to financial resources and barriers to investment in technology and productivity improvement. The aim of this study is to analyze the impact of financial resources on the economic performance of dairy farms in Kosovo. Data collection was conducted on a sample of 136 dairy farms, and the information obtained was analyzed using SPSS software. The influence of financial resources was evaluated using multiple linear regression (MLR) and the ANOVA test. The results of the study show that the use of a single financial resource is not sufficient to ensure good economic performance of dairy farms. In particular, subsidies significantly increase farm income (β = 0.290, p = 0.001), while loans negatively impact profitability (β = -0.294, p = 0.003). The findings suggest that combining subsidies with loans enhances financial stability. It is recommended that policymakers should improve access to diversified financial sources and develop targeted financial instruments to support the sustainability of dairy farms in Kosovo.