SUBSIDIES VS. ECONOMIC AND FINANCIAL EFFECTIVENESS OF FARMS BELONGING TO NATURAL PERSONS
Journal Title: Zagadnienia Ekonomiki Rolnej - Year 2013, Vol 336, Issue 3
Abstract
The research on the panel of 6,173 farms keeping accounts compliant with the Polish FADN methodology focused on the correlations between subsidies and economic and financial effectiveness in 2005-2010.The traditional ratio analysis showed that the significance of budgetary support in the shaping of the aforementioned effectiveness decreases along with an increase in the extent of conducted activity. The difference in the level od subsidies is, however, considerable between individual production types of farms. Moreover, it turned out that the farms receiving the highest support (farms with field crops, mixed crops and farms keeping ruminants) did not have a directly proportional advantage as regards effectiveness as compared to the farms the least dependent on budgetary support (horticulture and farms keeping granivores).Further on, the regressive calculations showed that the three examined levels of subsidies were most often negatively correlated with effectiveness. There are no, however, clear, in statistical terms, relations between effectiveness and decoupling of budgetary support from agricultural production.
Authors and Affiliations
Jacek Kulawik, Renata Płonka
Keywords
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