Filters
Ocena skuteczności proinwestycyjnych mechanizmów interwencyjnych w rozwoju gospodarstw rolnych w krajach Europy Środkowo-Wschodniej
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 The data source was unpublished individual data from the agricultural accounting “Polish FADN” results for all farms in the Wielkopolska Voivodship who had continuously participated in the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).
The Potential Impact of the European Green Deal on Farm Production in Poland
The proposed changes in the European Green Deal require the restructuring of the agricultural sector throughout the European Union. Particularly crucial for the agri-food industry are “From Farm to Fork” strategies and new legislation “for biodiversity,” which are an integral part of the European Green Deal. From an environmental perspective, changes are required immediately, but at the same time, they may reduce agricultural production in Poland. Therefore, this study aims to assess the potential consequences of implementing the European Green Deal principles on Polish agriculture’s productivity. The study is based on two key assumptions which involve a 50% reduction in the use of plant protection products and a 20% reduction in fertilisation. The conducted analyses rely on data from the Farm Accountancy Data Network (FADN). The results were obtained by constructing a panel regression model for farms of different economic sizes. Although the most significant reduction in production value may concern the largest farms (using the most fertilisers and plant protection products), the smallest farms may experience the most critical difficulties. The potential decline in crop production in Polish agriculture could be stopped by implementing modern technologies enabling the development of precision and digital agriculture 4.0.