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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 The empirical section relies on unpublished FADN microdata.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.
Zmiany aktywów trwałych w gospodarstwach rolnych o różnej skali inwestycji w województwie wielkopolskim
The operation and development of any economic entity require the implementation of investments. In the case of farms in Poland, characterized by inadequate capital and structural problems, it is particularly necessary to undertake investment activities to modernize the farms. The main purpose of the study was to evaluate agricultural investments made on farms in the Wielkopolska Voivodeship. The analysis is based on unpublished data of the individual results registered in the Polish FADN for the farms which continuously participated in the system of agricultural accounting from 2009 to 2021. Measuring the scale of investments, the comprehensiveness of the implemented investments was determined by relating the sum of investment expenditures to the average annual size of fixed assets (reduced by the value of land). The results confirm that the initial level of farm resources strongly impact the capacity for development. The size of the farm, measured by the area of utilised agriculture area, determines the incurring of an appropriate and relatively stable amount of investment in subsequent years of operation. The results of the study indicate that not only the implementation of investments in general but also their scale (in relation to the value of assets) determines the development capabilities of farms and, therefore, the improvement of the farms’ resources.
Trzeba pilnować swoich interesów [Wywiadu udzielił prof. UPP dr hab. Wawrzyniec Czubak, rozmowę przeprowadzili Grzegorz Ignaczewski i Dominika Mulak]
The Impact of Agricultural Investments on the Economic Efficiency of Production Factors: An Empirical Study of the Wielkopolska Voivodeship
The functioning and development of each economic entity requires the implementation of investments. In the case of farms in Poland, which are characterised by structural problems and a lack of capital, it is essential to undertake investment activities of a modern nature. The main objective of this research was to assess agricultural investments made in farms, considering the example of the Wielkopolska Voivodship in Poland, from the point of view of their impacts on changes in the economic efficiency of production factors. The data source was unpublished individual data from the agricultural accounting “Polish FADN” results for all farms in the Wielkopolska Voivodship who had continuously participated in the data collection system from 2009 to 2021. The project’s complexity was determined by measuring the scale of investments, relating the sum of investment expenditures to the average annual value of fixed assets (reduced by land value). Farmers endowed with a greater asset base had the ability to invest more comprehensively (i.e., in their most desirable scale regarding the value of possessed fixed assets) in a manner primarily concerning the value of fixed assets, especially the agricultural area, as a primary agricultural production factor. In terms of the effects of differentiating the scale of investment outlays (which was the aim of the study), a better initial state allowed farms to increase their area significantly, with an average annual rate of change of 3%. On the other hand, a lack of investment led to the decapitalisation of assets (−6.7% per year), which also concerned land sales (−1.5% per year). These research results indicate that not only does the undertaking of investments, in general, impact the development possibilities of farms—and, therefore, improvements in the resource situation of farms—but also the scale of investment (with respect to the value of possessed fixed assets).
