RESEARCH PAPER
ECONOMIC SIZE AND PRODUCTION EFFICIENCY OF FARMS SPECIALIZING IN FIELD CROPS IN POLAND
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Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej - Państwowy Instytut Badawczy
Submission date: 2018-11-08
Final review date: 2018-12-17
Acceptance date: 2019-02-13
Publication date: 2019-03-18
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2019;358(1):64-87
KEYWORDS
ABSTRACT
The article presents the economic results and production efficiency for farms
specializing in field crops classified by economic size classes. The FADN UE
data from 2010 and 2015 were used for the analysis. The income from the farm
was a measure of the economic situation. The assessment of production efficiency
was carried out at the production and technical level, the profitability
of current assets as well as the cost consumption and economic efficiency of
production were examined. The debt of farms was also analyzed.
Income from the farm without subsidies for operating activities in economic
size classes 1-5 successively increased, while for farms in the sixth class there
was a strong decline in it, as a result income was a negative value. In 2010,
the subsidies covered the loss on production and ensured a certain amount of
income, while in 2015 the loss was only partially covered (in 95%). The highest
income without subsidies per 1 ha of arable land was obtained on farms from
the third and fourth economic size classes (in 2010: EUR 267 and EUR 201,
respectively, in 2015 – EUR 161 and EUR 193). Farm production in the third
and fourth classes also stand out in terms of production efficiency, while in sixth
class of farms, the efficiency was the lowest. Together with the increase in the
economic size of farms, their debt increased. In all groups, the liabilities were
mostly long-term loans, but its smallest share was found in the sixth class of
farms. This means that significant funds were allocated to finance the current
operations of these farms.