Stability and Social Sustainability of Farm Household Income in Poland in 2003–2020

Kata, Ryszard; Leszczyńska, Małgorzata

doi:10.3390/agriculture11121296

Cited by 10 publications

(4 citation statements)

References 43 publications

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“…This was reflected in the agricultural added value, which, after a significant rise in 2020, fell in the second year of the pandemic. Similarly, Kata and Leszczyńska (2021) observe that in 2020, despite the COVID-19 pandemic and its negative economic impact, farmers' incomes increased quite dynamically, rising by over 8% compared to 2019 when adjusted for inflation. Meanwhile, Zegar (2022) analyses the change in agricultural incomes over a longer period, namely in 2020 compared to 2010.…”

Section: Literature Reviewmentioning

confidence: 98%

Prices of Means of Production in Agriculture and Agricultural Prices and Income in Poland During the COVID-19 Pandemic

Jędruchniewicz,

Wielechowski

2023

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Theoretical background: Agriculture is an input-intensive sector of the economy. The sector of means of production in agriculture is one of the three basic components of the food economy. The prices of agricultural inputs shape the operational costs of farms and significantly affect their income situation. Key agricultural inputs represent fertilizers, plant protection products, seeds, energy and labour force. The COVID-19 pandemic has affected the functioning of food systems all over the world, including in Poland. The agricultural sector in Poland faced several challenges, including the surge in prices of means of production in agriculture. Purpose of the article: The study aims to identify and assess changes in the prices of means of production in agriculture and the impact of changes in these prices on the dynamics of selling prices of agricultural products and the income situation of farms in Poland during the COVID-19 pandemic. Research methods: The study employs various research methods, including critical literature analysis, the descriptive approach, the comparative method, verbal logic, and descriptive statistical methods. Moreover, we utilize a standardised questionnaire method utilising the CATI (computer-assisted telephone interviewing) technique, targeting 50 experts in the field of agricultural economics, to gather their perspectives on the possibility of transferring the rise in agricultural production costs to the pricing of products sold during the COVID-19 pandemic. The secondary data come from the Statistics Poland, the Agency for Restructuring and Modernization of Agriculture (ARMA), and the National Bank of Poland (NBP). The research period covers the years 2017–2021, with particular emphasis on the years 2020–2021, i.e., the period of the COVID-19 pandemic. Main findings: Research results show that only in 2020, the prices of goods purchased for current agricultural production decreased. However, in 2021, the costs of materials and services and other costs in agriculture, including wages, increased at a record pace. The demand-side causes of such cost increases were increases in money supply and agricultural income. Supply-side causes were shaped by commodity prices and wages. In Poland, the prices of goods and services purchased by farms were less variable than the prices of goods sold. The data analysis did not reveal significant relationships regarding the dynamics of the prices discussed. Such a conclusion is also confirmed by the results of a questionnaire survey directed to experts in agricultural economics. The responses concerning the possibility of transferring the increase in production costs to the prices of sold products during the pandemic years varied. In the years 2017–2021, the income situation of Polish farms was variable. In 2020, increases in income from production factors, operating surplus, and farmer’s income, and their decreases in 2021, were inversely correlated with changes in production costs in agriculture.

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Section: Literature Reviewmentioning

confidence: 98%

Prices of Means of Production in Agriculture and Agricultural Prices and Income in Poland During the COVID-19 Pandemic

Jędruchniewicz,

Wielechowski

2023

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“…A holistic look at farmers' income stability requires an investigation of the income obtained from agricultural activity (from an individual/family farm holding), as well as the overall income obtained by farmers' households. Some of the income comes from non-agricultural sources, which is of significance to the level of income of farming families and their exposure to risk, and thus income fluctuation [23,[36][37][38]. Considering the strong relationship between a farmer's household and the farm holding, there are strong connec-tions between agricultural income and income from other sources [39].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The literature has covered only some topics of the complex issue of farmers' income stability [7,10,[21][22][23]. Moreover, different interpretations of the stability itself can be found depending on the point of view taken by the researchers on the problem.…”

Section: Introductionmentioning

confidence: 99%

Income Variability of Agricultural Households in Poland: A Descriptive Study

Kata,

Wosiek

2024

Agriculture

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Among the different types of households, agricultural ones are perceived as the most exposed to the problem of income instability. Income fluctuations pose a threat not only to the financial stability of farming families but also to the sustainable development of the agriculture sector. Investigating the scale and factors of the variability of farmers’ household incomes is important in designing and monitoring agricultural policy measures that aim to stabilize farmers’ incomes. In this context, the main objective of this article is to assess the income variability of agricultural households in Poland and to identify the main correlates of farmers’ income fluctuations in the period 1996–2022. To emphasize the significance of the problem of income instability for agricultural households, a comparative assessment of income variability was performed (relative to non-agriculture households). Furthermore, two research subperiods (1996–2003; 2004–2022; before and after EU accession) were distinguished to capture the association between the Common Agriculture Policy (CAP) and the stability of agricultural income. The study focusses on associations between variables (regression and correlation analyses were used). The income of agricultural households was shown to exhibit greater variability (year-on-year) than the income of households of workers and of self-employed people, with a lower scale of fluctuations after 2004. Furthermore, the study reveals a group of factors that could be correlated with the variability of the income of agricultural households: income structure (share of income from agriculture), natural and climatic conditions (variability of the yields and agricultural production), and changes in prices of the means of agricultural production. The findings raise, however, a question about the effectiveness of CAP instruments in stabilizing agricultural income.

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“…Relevant scholars have conducted much research on the influencing factors of farmers’ income (Kata & Leszczynska, 2021) and the effect of participating in cooperatives on farmers’ income (Fischer & Qaim, 2012; Ma & Abdulai, 2016), but there are fewer studies on how the influence of risk tolerance changes the mechanism on the income of households after they join agricultural professional cooperatives. Tobacco agriculture is different from other agricultural industries (Ngarava, 2020), as professional tobacco cooperatives play a crucial and positive role in promoting tobacco‐growing technology, training tobacco farmers, improving the efficiency of tobacco production organizations and effectively communicating with tobacco departments and farmers (Chavez et al., 2012).…”

Section: Introductionmentioning

confidence: 99%

The regulatory effect of cooperation degree in increasing tobacco farmers’ income by mitigating production risk shocks

Zhang

Chen

2023

Ann Public Coop Econ

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Context: Different from general agriculture, tobacco agriculture in China adopts the production mode of farmers’ cooperatives to instruct farmers to engage in tobacco agricultural production under a policy of tobacco control. In addition to providing convenience for industry technical standardization, the policy goal aims to cope with the impact of production risk shocks and ultimately ensure the modernization and transformation of the tobacco industry and the stability of income of farmers.Objective: This study intends to explore the influence mechanism of the different degrees of cooperation and participation in cooperatives on the income of tobacco farmers from the perspective of risk shocks.Methods: Through the quantitative methods of the OLS regression model, hierarchical regression model and moderation model, this paper analyzes the data of 393 farmers engaged in tobacco agricultural production in Shaanxi Province obtained from survey and empirically analyzes the relationship between the degree of cooperation and participation in cooperatives and income. Interaction terms between risk shocks and cooperation are introduced to verify the regulatory effect of participation in tobacco farmers’ professional cooperatives on mitigating risk shocks and improving agricultural income.Results and conclusions: The results show that while risk shocks, including natural risks, market risks and policy risks, negatively affect the income of tobacco farmers, the degree of cooperation and participation has a significant positive effect on the income of tobacco farmers, and the degree of peasant households’ participation in the professional cooperative of tobacco farmers as a moderator variable has a regulatory effect on mitigating the impact of risk shocks on the income of tobacco farmers. The mechanism of action is that tobacco farmers participate in cooperatives to a higher degree, which can further promote the association of farmers and jointly resist risk shocks by reducing production costs, improving the technical level, and strengthening risk prevention and other measures to improve the income level.Significance: It would be helpful to encourage tobacco farmers to take the initiative to participate in the daily management‐related affairs and decisions of cooperatives, strengthen technical training, obey cooperative management, and actively respond to cooperative policies to effectively resist risk shocks and stabilize farmers’ income level and family welfare.

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Stability and Social Sustainability of Farm Household Income in Poland in 2003–2020

Cited by 10 publications

References 43 publications

Prices of Means of Production in Agriculture and Agricultural Prices and Income in Poland During the COVID-19 Pandemic

Prices of Means of Production in Agriculture and Agricultural Prices and Income in Poland During the COVID-19 Pandemic

Income Variability of Agricultural Households in Poland: A Descriptive Study

The regulatory effect of cooperation degree in increasing tobacco farmers’ income by mitigating production risk shocks

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