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Taxation of Farms in the European Union and Its Sensitivity to Economic Indicators: Evidence from Poland (2004–2022)
The aim of this study is to present the taxation of the Polish farm sector in the years 2004–2022 in comparison with other EU countries. Three indicators were applied to describe the phenomenon: the value of taxes per farm, the share of taxes in family farm net income, and the value of taxes per hectare of agricultural utilized area. The analysis is based on data from the FADN database. Results for Poland were contrasted with those of other EU Member States. In addition, the sensitivity of the Polish farm tax burden to twelve basic production, economic, and financial categories was examined using the ordinary least squares method with a constant term. The findings were compared with EU averages, providing a descriptive overview of how tax burdens interact with farm performance and sustainability conditions.
Bezpieczeństwo finansowe i stabilność finansowa gospodarstw rolnych w Polsce po akcesji do Unii Europejskiej
Introduction: The aim of the study is to analyse the most important aspects of the financial safety and financial stability of agricultural farms. The auxiliary objective is to propose a synthetic measure of financial security for agricultural holdings based on known indicators from the analysis of financial data. According to the research hypothesis, financial stability is the premise for the financial security of a farm and both financial stability and security can be measured using indicators that provide effective tools to gauge progress and performance of an agricultural farm. The following research questions were formulated: • Does an increase in financial security mean a simultaneous increase in financial stability and vice versa? • Is it possible to recognize factors responsible for the financial security and stability of agricultural farms? • Is it possible to recognize factors threatening the financial security and stability of agricultural farms? • What are the institutional and behavioural determinants of farms’ financial decisions and what is their impact on the financial security and stability of agricultural farms? Material and methods: The research covers Polish agricultural farms keeping agricultural accounts according to the FADN system. The topic of the research is the financial security and stability of these farms. The time frame of the research is set for the years 2004–2019. The main source of secondary material are aggregated data from the FADN database. The most important research methods used in this research are panel models. Results and conclusions: The study identifies four areas of agricultural farms’ financial security. They include: 1. property and capital relations; 2. liquidity and debt; 3. operational efficiency; 4. financial efficiency. Special emphasis is placed on examining the relationship between assets, equity, agricultural farms’ financial autonomy, debt, and the excess liquidity of farms. The study also focuses on the relationship between net working capital and the farms’ operating cycle, in order to examine the profitability of farms while taking subsidies into account. A financial security index is also presented. It consists of elements measuring the situation in four key safety areas. The reference levels of this index are set to assess the financial stability and security of agricultural farms. As a result, types of farms with high and low financial security are identified. Additionally, there is an analysis of the types of farms that are at risk of losing financial security and the types of farms in which the level of such security is inappropriately high. The financial stability of the farms analysed is also assessed. Factors that affect the performance and progress of financial security are indicated. The results of the analysis can be used to assess the financial security and financial stability of agricultural farms. They carry important diagnostic information and can be used as an early warning system that enables preparations to be made and action to be taken that is appropriate and timely in order to reduce any threats to financial security and stability of agricultural farms.
Bezpieczeństwo finansowe polskich gospodarstw rolnych. Propozycja ujednoliconej miary
Celem głównym pracy było przedstawienie propozycji metodycznej kompozycji miernika bezpieczeństwa finansowego (BF) dla polskich gospodarstw rolnych. W opracowanym wskaźniku uwzględniono pięć czynników pochodzących z analizy wskaźnikowej danych finansowych. Podmiotem badań były gospodarstwa rolne z Polski, które prowadzą rachunkowość rolną w ramach systemu FADN. Przedmiotem badań było zaś bezpieczeństwo finansowe tych gospodarstw. Dokonano jego pomiaru, opierając się na wskaźnikach z zakresu relacji majątkowo-kapitałowych, płynności i zadłużenia, sprawności działania oraz efektywności finansowej. Najpierw opisano stan bezpieczeństwa finansowego w polskim sektorze gospodarstw rolnych na tle średnich wyników obserwowanych w Unii Europejskiej w latach 2004–2020. Następnie na podstawie eksperymentalnego zbiorczego wskaźnika BF powstał ranking gospodarstw rolnych dla 2020 r., pokazujący 10 najwyższych i najniższych wyników. W końcowej części pracy wykonano badanie wrażliwości wskaźnika BF na wybranych 12 podstawowych kategorii produkcyjnych, ekonomicznych i finansowych za pomocą klasycznej metody najmniejszych kwadratów ze stałą. Po wykonanych badaniach można stwierdzić, że polskie gospodarstwa rolne są bezpieczne finansowo, co wynika z: przewagi aktywów trwałych w sumie bilansowej, zachowania złotej reguły bilansowej, nadpłynności, niskiego zadłużenia, dodatniego udziału kapitału obrotowego netto w sumie bilansowej i zauważalnej dochodowości. Ponadto ich wyniki nie odbiegają znacząco od średniego poziomu obserwowanego w 28 krajach UE. Na podstawie rankingu wykazano, że tendencję do utrzymywania nadmiernego bezpieczeństwa finansowego mają gospodarstwa najmniejsze – do 12 ha, o dochodzie do ok. 11 tys. euro – niezależnie od kierunku produkcji. Potwierdzają to wyniki oszacowanych modeli z jedną zmienną. Im wyższe jest bezpieczeństwo finansowe gospodarstwa, tym niższe aktywa, zobowiązania, dochód i przepływ pieniężny.
Interdependence between Energy Cost and Financial Situation of the EU Agricultural Farms—Towards the Implementation of the Bioeconomy
The concept of a bioeconomy can be an opportunity for agricultural and rural development. The objective of this research is to identify groups of family farms which are able to implement the principles of this new development model based on a bioeconomy and to reduce operating costs, especially energy. The time scope of this study covers the period 2004–2020. The data source is the Farm Accountancy Data Network. On the basis of the values of output, family farm income, cash flow, net investment and total inputs (including energy costs), the classes of family farms are indicated. The ranking is based on geographical criteria and the results of panel data models with fixed effects which measure the relationship between energy costs and production, income, cash flow and net investment according to the economic size of the family farm. The results obtained are discussed within the framework of recommendations of the European Commission.
Renewable Energy Produced by Agricultural Farms in 2014-2022
The objective of this research is to show the family farms as an energy consumers and producers from renewable sources. It is a possibility for them to reduce operating costs. Time scope of the study covers the period 2014-2022. The data source is the Farm Accountancy Data Network. On the basis of the value of energy output and energy costs the rankings were prepared. After the ranks were awarded, the strong position of the Netherlands and Germany was indicated. It has been shown that the production and consumption of energy depend on the economic size of the farm, and do not depend on the type of production. As such, panel models were built for energy output and costs. The determinants that affect them were indicated. Energy output depends on total inputs – the higher they are, the higher the output. The energy costs are related to utilized agricultural area, total output and family farm income. The results obtained are discussed within the framework of recommendations of the European Commission.