The income-assets relationship for farms operating under selected models in Poland

Abstract

The aim of this paper is to outline the relationship between income and assets when taking into account selected models of farms' functioning. The following farm models are examined: traditional, industrial, sustainable, and organic. Panel models were used that were based on the results of individual unpublished data for farms in Poland that undertook agricultural accounting according to the Farm Accounting Data Network (FADN) principles from 2004 to 2019. It was found that industrial farms had the clearest income-assets relationship, while traditional farms had the least clear relationship. The value of land, as a component of assets, was found to weaken the income-assets relationship. In consequence, the value of assets increased faster than income. Thus, the farmers are becoming wealthier in terms of the value of their assets, but this is not reflected in their income.

Development vs efficiency of Polish farms - trade-off or synergy effects?

“…The results also indirectly indicate that greater digressive of decoupled payments should take place, depending on the UAA (Grzelak, 2022a). The idea is to limit the impact of the rent-seeking phenomenon on-farm efficiency.…”

Konwergencja efektywności ekonomicznej w gospodarstwach rolnych Wielkopolski

“…Realny wzrost produkcyjności kapitału występował tylko w gospodarstwach największych. Może to wynikać z faktu, że w mniejszych gospodarstwach wciąż konieczne są nakłady inwestycyjne związane z wprowadzaniem postępu technicznego i dążeniem do substytucji pracy kapitałem (Grzelak 2022), a ich wartość jest nieproporcjonalna do przyrostu produkcji. Inwestycjom sprzyjała relatywnie dobra koniunktura w rolnictwie oraz dostępność środków na inwestycje w ramach działań wspólnej polityki rolnej (Grzelak 2016, Wicki 2015b).…”

A new financial settlement approach to stabilize profitability of pig production

“…This problem has been recognized for some time, but there has been a failure to implement solutions. Because of this, large corporations that conduct contract fattening account for almost 50% of the entities involved in pork production [ 4 , 19 , 20 ]. Contract fattening has negative consequences for market participation by smaller farms, which are more capable of realizing the important idea of shortening the supply chain [ 4 , 19 , 20 ].…”

“…Because of this, large corporations that conduct contract fattening account for almost 50% of the entities involved in pork production [ 4 , 19 , 20 ]. Contract fattening has negative consequences for market participation by smaller farms, which are more capable of realizing the important idea of shortening the supply chain [ 4 , 19 , 20 ]. This is particularly important in the Polish context where small farms dominate.…”