The impact of the direction of production of the European Union agricultural enterprises at the level of total farming overheads

Purpose: The main aim of the study is to analyse the relationship between the production direction of the European Union agricultural enterprises and the different types of total farming overheads incurred by these agricultural enterprises. Additionally, the achieved results are to present how the direction of production of the European Union agricultural enterprises influences on the incurred total farming overheads relating to the functioning of the agricultural enterprises. Design/methodology/approach: The one-way analysis of variance ANOVA was used to realise the aim of the study. To present the production directions the data relating to the eight agricultural types listed in the FADN base were used. The conducted studies have been focused on the four types of total farming overheads relating to the performed production activities. The study covers all European Union member countries from the period from 2005 to 2017. Findings: The most frequent differences in bearing the different types of total farming overheads are evident between the type of horticulture, wine and permanent crops and the types of agricultural enterprises focused on livestock production. The several differences may be observed in case of the agricultural enterprises oriented on the same food sources Originality/value: There are significant differences in the level of the incurred total farming overheads between the agricultural enterprises oriented on crop production and livestock production. The much higher costs may be observed in the agricultural enterprises oriented on crop production, in particular in case of horticulture, wine and permanent crops.