Farmers’ opi nion on determi nants of managi ng comm ercial credit
Journal Title: Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu - Year 2015, Vol 17, Issue 6
Abstract
The paper presents the opinions of farmers on the management of commercial credit in relation to cash flow streams. Individual farms from the Podlaskie Voivodeship were the subject of research. Most farmers covered their liabilities immediately. The higher the general balance of cash flow was, the less inclined to cover the liabilities the farmers were. Taking upon the decision of paying back the money, such factors were taken into account by the farmers as the level of income of the farm and the date of receiving the payment. Farmers who had the highest level of the balance of cash flows from operating activities and without financial liquidity, took a subsidized loan or went for an overdraft. When the value of the balance of cash flows from operating activities and final cash rose, farmers were more likely to have problems with financial liquidity. Also, the farmers indicated that they turn the profit into both further expansion and spend money on current expenditures.<br/><br/>
Authors and Affiliations
Mirosław Wasilewski, Magdalena Forfa
Keywords
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