Improvements in sustainability at the farm level are the basic driver of agricultural sustainability at the macro level. This is a challenge that can only be met by farms which efficiently process inputs into products. The increase in the efficiency of European farms is largely conditioned by measures taken under the Common Agricultural Policy (CAP), especially its second pillar. The purpose of this study was to determine the net effect of pro-investment instruments available under the second pillar of the CAP in selected Central and Eastern European countries. Unpublished Farm Accountancy Data Network (FADN) microdata provided by the European Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI) were used as the source material. The study presented in this paper is unique in that the research tasks are based on unpublished microdata of selected Central and Eastern European farms. The study relied on the Propensity Score Matching approach; the net effect of pro-investment mechanisms was analyzed using productivity and profitability indicators calculated for farms which have been keeping FADN records for a continuous period of no less than 6 years. As shown by the study, structural funds available under the CAP clearly provided an investment incentive for farms. The conclusion from the assessment of changes in the availability of productive inputs is that the beneficiaries reported a greater increase in fixed asset value and in farm area in all countries except for the Czech Republic and Slovakia. The comparative analysis of countries covered by this study failed to clearly confirm that labor is substituted with capital to a significant extent. Every country covered by this study experienced a noticeable negative net effect on both the productivity and profitability of capital. When considering all the countries, the beneficiary group has no clear advantage over the control group in terms of changes in land and labor productivity and profitability (a statistically significant positive effect was recorded for land productivity and profitability in Slovenia). As regards labor, a statistically significant positive net effect (a difference in growth rate between the beneficiary group and the control group) was recorded in Slovenia, but also in Poland, where beneficiary farms reported a greater increment in labor profitability and reduced the negative difference in labor productivity.

In many circles, brown coal continues to be viewed as a cheap source of energy, resulting in numerous investments in new opencast brown coal mines. Such a perception of brown coal energy is only possible if the external costs associated with mining and burning coal are not considered. In past studies, external cost analysis has focused on the external costs of coal burning and associated emissions. This paper focuses on the extraction phase and assesses the external costs to agriculture associated with the resulting depression cone. This paper discusses the difficulties researchers face in estimating agricultural losses resulting from the development of a depression cone due to opencast mineral extraction. In the case of brown coal, the impacts are of a geological, natural-climatic, agricultural-productive, temporal, and spatial nature and result from a multiplicity of interacting factors. Then, a methodology for counting external costs in crop production was proposed. The next section estimates the external costs of crop production arising from the operation of opencast mines in the Konin-Turek brown coal field, which is located in central Poland. The analyses conducted showed a large decrease in grain and potato yields and no effect of the depression cone on sugar beet levels. Including the estimated external costs in the cost of producing electricity from mined brown coal would significantly worsen the profitability of that production.

Th e diversifi ed level of agricultural development and directions of evolution of rural areas in the individual EU countries results in complex and diversifi ed problems for the agricultural policy. Th at was a basic reason of giving a relatively great freedom to the individual member states to choose measures within the individual axes of the Rural Development Programmes. Th e allocation of expenses to the individual measures Member States should ensure that synergies among the economic, environmental and social aspects and, by assumption, it is supposed to refl ect the priorities of rural development. Th e analysis of the allocation of expenses within the national rural development programmes will indicate similarities and diff erences of the use of the CAP support in the regional aspect. Th e main goal of the paper was to determine the priorities of rural development in the individual EU member states. As results from the analysis the specifi c character of the individual programmes corresponded to the level of development of the individual countries and the needs of the agribusiness and rural areas resulting from that level. Th e diversifi cation concerning the directions of use of the assets from the European Agricultural Fund for Rural Development resulted from the diff erent wealth of the societies and rural communities in the individual countries.

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Ensuring adequate profitability of production, which can be ensured by optimal investments, can encourage farmers to be more caring about sustainable development. Several existing studies indicate that technical efficiency in agriculture varies regionally. Investments comprise a basic way to increase efficiency and thus reduce polarisation between regions. However, contrary to established assumptions, not every investment leads to increased efficiency, which entails a phenomenon of overinvestment. Investments should, by definition, be positively correlated with efficiency. However, existing studies indicate the existence of a significant problem of overinvestment, where increased efficiency may not occur. While for about 40% of farms in Poland the scale of investments can be assessed as optimal, more than quarter of farms exhibited absolute overinvestment and nearly one in five farms is underinvested. In response to this problem, this study aimed to identify regional differences in Poland with regard to overinvestment in farms, as well as to determine changes in farm efficiency depending on the region and level of overinvestment. The source material used in the following article consisted of unpublished Farm Accountancy Data Network (FADN) microdata derived from the DG AGRI of the European Commission. The study covered the period 2004–2015. For an original classification of farms according to their level of overinvestment the technical efficiency, using the stochastic frontier analysis approach, was used for determining regional differences that occurred as a result of overinvestment. Stochastic frontier analysis shown noticeable differences in the average technical efficiency for different overinvestment groups. As expected, underinvested farms are the least efficient (general in Poland and in all analyzed regions) and average technical efficiency did not increase. Interestingly, optimally investing farms do not have the highest technical efficiency. Higher efficiency was achieved by both relatively and absolutely overinvested farms. This is due to the fact that in order to produce efficiently in agriculture, it is necessary to at least maintain the level of tangible assets provision, and preferably to increase it as well. In terms of overinvestment levels, farm structure does not differ significantly between individual regions in Poland. However, there are differences between regions in terms of farm efficiency within each group. In all regions, only the underinvested farms did not increase their efficiency over the period under review and the highest efficiency growth rate was in regions where farms were least efficient at baseline.