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The Efficiency of Public Financial Support Investments into Dairy Farms in Poland by the European Union

Author

Listed:
  • Krzysztof Zalewski

    (Department of Agrotechnology and Agribusiness, Faculty Agriculture and Forestry, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland)

  • Piotr Bórawski

    (Department of Agrotechnology and Agribusiness, Faculty Agriculture and Forestry, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland)

  • Ireneusz Żuchowski

    (Department of Economics and Management, Higher School of Agribusiness in Lomża, ul. Studencka 19, 18-402 Łomza, Poland)

  • Andrzej Parzonko

    (Department of Economics and Organization of Enterprises, Faculty of Economics, Institute of Economics and Finance, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland)

  • Lisa Holden

    (Department of Animal Science, Faculty of Agricultural Sciences, Pennsylvania State University, University Park, PA 16802, USA)

  • Tomasz Rokicki

    (Department of Logistics, Faculty of Economics, Institute of Economics and Finance, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

Abstract

The main aim of this research was to evaluate the efficiency of the use of public financial support investment activities into selected dairy farms in Poland. The research targeted 207 farms that earned their living through milk production and benefited from the 2011–2014 European Union (EU) financial support for investments carried out under the “modernization of agricultural holdings” included in the Rural Development Programme (RDP 2007–2013). Two research hypotheses were developed for this work. The first research hypothesis, “the possibility of obtaining funding for an investment is a factor that determines its implementation”, was positively verified. This was mainly due to the size of the investments carried out in the research farms, where an average increase in fixed assets was recorded at the level of 90%. The econometric calculations were carried out indirectly from the declarations of the farmers themselves, who, during the research, excluded the possibility of carrying out investments without receiving external support. The second research hypothesis, “investments carried out in farms improved their economic situation”, was positively verified. This was shown with the calculated results of agricultural income in the research farms, which increased in the analyzed period from 66.5%, to 125%.

Suggested Citation

  • Krzysztof Zalewski & Piotr Bórawski & Ireneusz Żuchowski & Andrzej Parzonko & Lisa Holden & Tomasz Rokicki, 2022. "The Efficiency of Public Financial Support Investments into Dairy Farms in Poland by the European Union," Agriculture, MDPI, vol. 12(2), pages 1-26, January.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:2:p:186-:d:736598
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    Citations

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    Cited by:

    1. Zuba-Ciszewska Maria, 2023. "The role of state aid for the food industry – Based on the example of dairies in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(2), pages 101-116, June.
    2. Jagoda Zmyślona & Arkadiusz Sadowski & Krzysztof Piotr Pawłowski, 2024. "How Can Overinvestment in Farms Affect Their Technical Efficiency? A Case Study from Poland," Agriculture, MDPI, vol. 14(10), pages 1-16, October.
    3. Waldemar Bojar & Wojciech Żarski & Renata Kuśmierek-Tomaszewska & Jacek Żarski & Piotr Baranowski & Jaromir Krzyszczak & Krzysztof Lamorski & Cezary Sławiński & Konstadinos Mattas & Christos Staboulis, 2023. "A Comprehensive Approach to Assess the Impact of Agricultural Production Factors on Selected Ecosystem Services in Poland," Resources, MDPI, vol. 12(9), pages 1-19, August.

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