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Changes in Farm Production in the Context of Overinvestment: A Case Study from Poland

cris.lastimport.scopus2025-10-23T07:01:00Z
cris.virtual.author-orcid0000-0001-6386-7857
cris.virtual.author-orcid0000-0002-8236-1007
cris.virtual.author-orcid#PLACEHOLDER_PARENT_METADATA_VALUE#
cris.virtualsource.author-orcid09c968f3-6efb-441d-a2cd-290ae72d88fd
cris.virtualsource.author-orcidc1cd59ae-7c44-45ed-872c-9e41f16d31a3
cris.virtualsource.author-orcid#PLACEHOLDER_PARENT_METADATA_VALUE#
dc.abstract.enInvestments 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.
dc.affiliationWydział Ekonomiczny
dc.affiliation.instituteKatedra Ekonomii i Polityki Gospodarczej w Agrobiznesie
dc.contributor.authorZmyślona, Jagoda
dc.contributor.authorSadowski, Arkadiusz
dc.contributor.authorKurzawa, Izabela
dc.date.access2025-03-27
dc.date.accessioned2025-03-27T12:02:01Z
dc.date.available2025-03-27T12:02:01Z
dc.date.copyright2025-02-05
dc.date.issued2025
dc.description.abstract<jats:p>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.</jats:p>
dc.description.accesstimeat_publication
dc.description.bibliographyil., bibliogr.
dc.description.financeother
dc.description.financecost11970,69
dc.description.if3,3
dc.description.number2
dc.description.points100
dc.description.versionfinal_published
dc.description.volume17
dc.identifier.doi10.3390/su17031288
dc.identifier.issn2071-1050
dc.identifier.urihttps://sciencerep.up.poznan.pl/handle/item/2635
dc.identifier.weblinkhttps://www.mdpi.com/2071-1050/17/3/1288
dc.languageen
dc.pbn.affiliationeconomics and finance
dc.relation.ispartofSustainability
dc.relation.pagesart. 1288
dc.rightsCC-BY
dc.sciencecloudsend
dc.share.typeOPEN_JOURNAL
dc.subject.enfarm investments
dc.subject.enfarm production
dc.subject.enfarm overinvestment
dc.subject.enPoland
dc.subject.enFADN
dc.titleChanges in Farm Production in the Context of Overinvestment: A Case Study from Poland
dc.typeJournalArticle
dspace.entity.typePublication
oaire.citation.issue3
oaire.citation.volume17
project.funder.nameNarodowe Centrum Nauki grant nr. 2021/41/N/HS4/00443