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Znaczenie dotacji inwestycyjnych w poszczególnych typach rolniczych gospodarstw rolnych
Investment subsidies under the Common Agricultural Policy have significantly influenced the development of agricultural holdings in Poland. This impact has been observed both in financial terms, through the introduction of new non-refundable support instruments, and in organizational terms, related to improved working conditions and the modernization of farms’ technical base. It is therefore justified to examine the role of investment subsidies with regard to specific farming types. The aim of this study was to identify relationships between the amount of investment subsidies received, the level of investment, and production output in Polish agricultural holdings by farming type in 2007-2023. The analysis revealed significant differences in the level of investment support across farming types. The most highly subsidized included mixed farms, holdings specializing in pig production, and farms focused on permanent crops. In recent years, an increase in both investment support and investment expenditure has been observed in holdings oriented toward livestock production, particularly pig farming. This trend was related to the post-2014 focus of support programmes on piglet and milk production, as well as measures aimed at combating African swine fever (ASF).
Variability in Levels of Investment, Investment Subsidies, and Costs in Polish Farms Depending on the Type of Agricultural Production
Changes in Farm Production in the Context of Overinvestment: A Case Study from Poland
Investments are the development core of every economic operator and the driving force for national economic development. While finding the optimal investment point is extremely difficult, every operator may seek to attain a level of fixed assets which allows them to maintain an increase in production and keep their income flowing. The difficulties in finding this optimum may lead to overinvestment. Hence, this paper estimates the parameters of the production function at various investment levels. Its purpose is to identify the relationship between the investment levels, the use of productive inputs, and growth or decline in production (output) levels. This study used microdata for 3273 Polish farms, as retrieved from the FADN (Farm Accountancy Data Network). The differences found at various farm investment levels allow for highlighting some problematic areas, e.g., in the context of excessive capital use relative to yearly increments in production values. The proposed method of analyzing overinvestment based on the production function can be extended to other countries. According to this paper, farms that invested too little or too much in relation to their production potential showed the worst economic performances, including the greatest declines in production.
Possibilities of Changes in Energy Intensity of Production Depending on the Scale of Farm Investments in a Polish Region
The purpose of this paper was to analyze the possibility of changes in energy intensity of production in the context of farm investment scale. The empirical section relies on unpublished FADN microdata. The study answers the question of whether investments and fixed capital growth can contribute to improvements in environmental performance of agricultural production. As it turns out, the group of farms with the greatest amount of investments saw an increase in energy consumption costs, though at a much slower rate than growth in production value. As a result, there was a drop in energy intensity of production, defined as the ratio between energy costs and production value. These findings corroborate the hypothesis advanced in this study, namely that upon reaching a sufficiently large amount of investments, farms can become capable of reducing the energy intensity of their production activity. Hence, higher levels of capital productivity are attained when the farms invest in more energy-efficient fixed assets. Conclusions cannot be universal, as the analysis involved a portion of selected farms. However, the research indicates a trend in the study of energy intensity of production depending on the scale of investment and the validity of the investment comprehensiveness approach. These conclusions provide a basis for recommendations for an agricultural policy which should include support for investments that are large and comprehensive (in relation to the farm’s assets) and go beyond the simple renewal of assets. Therefore, in its investment-oriented measures, the agricultural policy should take the innovativeness (including energy efficiency) criterion into account.