Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size

Abstract

Farms in Poland come in a wide variety of sizes, and the effect of farm size on the profitability of labor has not been sufficiently investigated. This paper takes a fresh look at the model for labor profitability determinants of family farms in Poland in relation to their economic size. The purpose of this paper is to analyze the factors that determine the labor profitability index in farms of various economic size classes (classes ES1–ES5). In the analysis of factors shaping the profitability of labor in family farms, a panel analysis was applied. Family farm income expressed per family labor unit was adopted as the dependent variable. The following variables were used as explanatory variables: (1) macroeconomic index of price relations (“price gap”); unemployment; average monthly gross wages and salaries; inflation; (2) technical-agricultural production efficiency index; (3) microeconomic ratio of total assets to agricultural land; technical equipment for work; land-to-labor ratio; debt ratio, subsidy ratio, and investment effort. A diversified influence of selected factors determining the level of profitability of labor in agriculture in particular groups of farms was found. The econometric models developed also indicate different strategies that are adopted by farmers on various farms. There is no single solution here; strategies for improving the profitability of work must take into account the specificity of a given entity. The models estimated indicate the necessity of using other mechanisms and tools of agricultural policy for farms of various economic sizes. It should be expected that, in the future, there will be a dichotomous development of farms. Medium-sized farms will become larger and economically effective, and smaller farms will perform residential functions, with the disappearing function of agricultural production.

Which Scale Is Appropriate for the Sustainable Management of Paddy Field?—A Case Study of Jiaxing, China

“…Omotilewa et al also have found that agricultural policy can promote the growth of agricultural productivity, agricultural commercialisation, and food security in Nigeria [45]. Kusz et al discussed the impact of macro factors and agricultural subsidies on the scale change of grain farms in Poland [46]. This is because geography and policy support may continue to influence the business decision-making behaviour of farmers in other nations, as evidenced by studies on the agricultural scale and efficacy of the dairy industry in Western Europe and the grape industry in Western Cape, South Africa [47].…”

Sustainable Development between Demonstration Farm and Agricultural Labor Productivity: Evidence from Family Farms in the Mountainous Area of Western China

“…[5][6][7][35][36][37]. Notwithstanding, the economic, social and ecological benefits of family farms can also be disturbed by various influencing factors [6,7,[35][36][37]40,41]. For instance, mechanisms and tools of agricultural policy, agricultural mechanization, crop establishment, wage labor, quality capabilities of agricultural managers, level of internal management, rural financial credit system, satisfaction of social service demand, support for agricultural science and technology, and quality and safety of agricultural products, etc.…”

“…For instance, mechanisms and tools of agricultural policy, agricultural mechanization, crop establishment, wage labor, quality capabilities of agricultural managers, level of internal management, rural financial credit system, satisfaction of social service demand, support for agricultural science and technology, and quality and safety of agricultural products, etc. [40][41][42][43][44][45][46]. As it should be, objectively speaking, the development of family farms in different countries and regions at different stages of development is affected by natural, social, economic, cultural, technical and other factors.…”

Wykorzystanie metody DEA do analizy zmian produktywności i efektywności w zakresie produkcji zbóż według województw w latach 1997-2019

“…Ustalono, że województwo zachodniopomorskie, które przed 2004 rokiem było w grupie województw o najmniej efektywnej produckji zbóż, stało się efektywne pod tym względem w okresie kilkunastu lat. Mogło to wynikać z korzystnej struktury obszarowej gospodarstw, gdyż w większych gospodarstwach poziom korzystania z postępu oraz efektywność wykorzystania nakładów jest wyższa niż w mniejszych [Kusz i in. 2022].…”