Crop diversification finds an important place in the strategy of dealing with risk and uncertainty related to climate change. It helps to increase the resilience of farmers, significantly improving their income stability, but at the same time, it can lower the economic efficiency of small farms. The aim of the article is to identify the determinants of crop diversification and the impact of crop diversification on the economic efficiency of small farms in Poland. This article first provides a critical review of the literature on crop diversification, its role in stabilizing agricultural income and its impact on economic efficiency in small farms. Secondly, the level of crop diversification was determined and empirical research was conducted considering the economic, social and agronomic characteristics of farms. Thirdly, the economic efficiency of farms diversifying crops was compared with farms focused on one type of production. The research material consisted of small farms participating in the Polish system of collecting and using farm accountancy data (FADN) in 2018. The level of diversification was determined using the Herfindahl-Hirschman Index. The factors influencing crop diversification were identified using the logit regression model. The Mann–Whitney U rank sum test was used to assess the significance of the differences in distributions. The research results indicate an average level of crop diversification in small farms in Poland and its regional differentiation. In addition, a statistically significant positive impact on the probability of crop diversification in small farms in Poland was found of variables such as the level of exposure of agricultural production to atmospheric and agricultural drought and the location of the farm in the frost hardiness zone and a statistically significant negative impact of the variable: value of fixed assets. The existence of significant differences in the level of economic efficiency of farms diversifying crops and farms focused on one profile of agricultural production was proved. The study is an important voice in the discussion on increasing measures to strengthen support for small farms that diversify crops so as to ensure their greater stability and economic efficiency.

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The aim of this study was to identify and assess the factors influencing the increase in the financial energy of a farm through the use of external capital, taking into account the farmer’s and farm characteristics. For its implementation, a logistic regression model and a classification-regression tree analysis (CRT) were used. The study was conducted on a group of farms in Central Pomerania (Poland) participating in the system of collecting and using data from farms (Farm Accountancy Data Network—FADN). Data on 348 farms were used for the analyses, obtained through a survey conducted in 2020 with the use of a questionnaire. Based on the analysis of the research results presented in the literature to date, it was established that the use of external capital in a farm as a factor increasing financial energy is determined, on the one hand, by the socio-demographic characteristics of the farmer and the characteristics of the farm, and on the other hand, by the availability of external financing sources. Factors relating to the first of these aspects were taken into account in the study. Using the logistic regression model, it was established that the propensity to indebtedness of farms is promoted by the following factors: gender of the head of the household (male, GEND), younger age of the head of the household (AGE), having a successor who will take over the farm in the future (SUC), higher value of generated production (PROD_VALUE), larger farm area (AREA) and multi-directional production of the farm (production diversification), as opposed to targeting plant or animal production only (farm specialization—SPEC). The results of the analysis carried out with the use of classification and regression trees (CRT) showed that the key factors influencing the use of outside capital as a source of financial energy in the agricultural production process are, first of all, features relating to an agricultural holding: the value of generated production (PROD_VALUE), agricultural area (AREA) and production direction (SPEC). The age of the farm manager (AGE) turned out to be of key importance among the farmer’s features favoring the tendency to take debt in order to finance agricultural activity.

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