Impact of the Type of Agricultural Activity Undertaken on Income Earned from Individual Farms in Poland – A Regional Analysis

Variation in income earned from individual farms is affected by a variety of factors such as soil quality, technical advancement, agricultural policy reforms, work efficiency, as well as scale and directions of agricultural production. The level of income earned by business entities, including individual farms, is a significant factor that affects expenses incurred in relation to the operation of an agricultural business and expenses to satisfy the needs of each member of a farmer’s household. The objective of this paper is to determine the impact of the type of agricultural activity undertaken and the area of agricultural land on income earned by individual farms in Poland. In addition, an attempt was made to evaluate regional variation in financial, area-related, and production indicators taken into consideration in the course of the study between individual farms. The results have been presented at the regional NUTS 2 level in Poland for 2017. Results of the study conducted have been visualised by means of the statistical, descriptive, comparative, and graphical method. Coefficients of variation Vs and correlation coefficients rxy were calculated. The study has revealed that there is a significant regional variation in Poland in terms of income earned by individual farms. Regional variation has also been found in the scale and type of agricultural production undertaken. In addition, it has been proven that the level of income earned from individual farms depends on the type of agricultural activity undertaken and on the area of agricultural land.