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Determinants of Fixed Asset Investment in the Polish Farms

Author

Listed:
  • Elżbieta Jadwiga Szymańska

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

  • Mariusz Dziwulski

    (Department of Economic Analysis, PKO BP SA, 02-515 Warsaw, Poland)

  • Michał Kruszyński

    (Department of Management, Faculty of Logistics and Transport, The International University of Logistics and Transport in Wroclaw, 51-168 Wroclaw, Poland)

Abstract

The aim of this study was to determine the factors affecting the level of investment activity of agricultural producers in Poland. Detailed studies included 4309 farms that kept accounts within the Farm Accountancy Data Network (FADN) accounting system in the years 2010–2018. The study uses Person’s linear correlation method, the multiple correlation method, and regression analysis. For the regression analysis, both static and dynamic models were applied. The level of expenditure on agricultural investment varied in the surveyed households and showed an upward trend during the years 2010–2018. Studies have shown that the investment activity of Polish farms largely depends on the possibility of raising funds from European Union programs dedicated, inter alia, to the development of agricultural holdings. The regression analysis demonstrated that the principal factors affecting the level of agricultural investment include: the amount of long-term liabilities, the family income of the farm, and the amount of investment subsidies. Preferential loans are an important parameter in a dynamic investment model. This study suggests that agricultural policy factors should be taken into account to ensure the appropriate development of Polish farms.

Suggested Citation

  • Elżbieta Jadwiga Szymańska & Mariusz Dziwulski & Michał Kruszyński, 2021. "Determinants of Fixed Asset Investment in the Polish Farms," Sustainability, MDPI, vol. 13(24), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13741-:d:701178
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    References listed on IDEAS

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    2. LaDue, Eddy L. & Miller, Lynn H. & Kwiatkowski, Joseph H., 1988. "Factors Influencing Farm Investment Behavior," 1988 Regional Committee NC-161, October 4-5, 1988, McLean, Virginia 127330, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
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    5. Kataria, Karin & Curtiss, Jarmila & Balmann, Alfons, 2012. "Drivers of Agricultural Physical Capital Development: Theoretical Framework and Hypotheses," Factor Markets Working Papers 122, Centre for European Policy Studies.
    6. Geert Thijssen, 1996. "Farmers' Investment Behavior: An Empirical Assessment of Two Specifications of Expectations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 166-174.
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    Cited by:

    1. Bożena Kusz & Dariusz Kusz & Iwona Bąk & Maciej Oesterreich & Ludwik Wicki & Grzegorz Zimon, 2022. "Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    2. Luigi Biagini & Simone Severini, 2022. "How Does the Farmer Strike a Balance between Income and Risk across Inputs? An Application in Italian Field Crop Farms," Sustainability, MDPI, vol. 14(23), pages 1-15, December.

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