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Why is the Polish farm sector still so underdeveloped?

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  • Arne Henningsen

Abstract

This article presents a comprehensive review of the Polish farm sector. The main objective is to analyse the causes of its backwardness and slow development. Low remuneration of farm work and the resultant low profitability are the largest problems of many farms. Several causes of the low profitability are evaluated. We show that all relevant causes are closely interrelated and that the extraordinarily high labour intensity has the largest impact. Subsequently, we analyse several causes of the extremely large share of agricultural employment in the Polish economy. Low skills of farm workers, the poor performance of the land market and the high level of subsidisation of the social security system for farmers (KRUS) are identified as the most important causes. Finally, some policy recommendations are given.

Suggested Citation

  • Arne Henningsen, 2009. "Why is the Polish farm sector still so underdeveloped?," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 47-64.
    • Handle: RePEc:taf:pocoec:v:21:y:2009:i:1:p:47-64
    DOI: 10.1080/14631370802663646
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    1. Van Zyl, Johan & Miller, Bill R. & Parker, Andrew, 1996. "Agrarian structure in Poland : the myth of large-farm superiority," Policy Research Working Paper Series 1596, The World Bank.
    2. Christian H.C.A. Henning & Arne Henningsen, 2007. "Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 665-681.
    3. Henning, Christian H.C.A. & Henningsen, Arne, 2007. "AJAE Appendix: Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(3), pages 1-44, August.
    4. Zawojska, Aldona & Siudek, Tomasz, 2005. "Do Cooperative Banks Really Serve Agricultural Sector in Poland?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24479, European Association of Agricultural Economists.
    5. Wilkin, Jerzy, 2007. "Agriculture in new Member States - expectations and lessons learned," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8529, European Association of Agricultural Economists.
    6. Lerman, Zvi, 2002. "Productivity And Efficiency Of Individual Farms In Poland: A Case For Land Consolidation," 2002 Annual meeting, July 28-31, Long Beach, CA 19835, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Berthold, Norbert & Neumann, Michael, 2003. "Europas Kampf gegen die Arbeitslosigkeit - was bewirken die Strukturfonds?," Discussion Paper Series 63, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    8. Newell, Andrew T. & Socha, Mieczyslaw, 2005. "The Distribution of Wages in Poland, 1992-2002," IZA Discussion Papers 1485, Institute of Labor Economics (IZA).
    9. World Bank, 2001. "Poland - The Functioning of the Labor, Land and Financial Markets : Opportunities and Constraints for Farming Sector Restructuring," World Bank Publications - Reports 15457, The World Bank Group.
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    Cited by:

    1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    2. Agnieszka Bezat-Jarzębowska & Włodzimierz Rembisz & Sebastian Jarzębowski, 2024. "Maintaining Agricultural Production Profitability—A Simulation Approach to Wheat Market Dynamics," Agriculture, MDPI, vol. 14(11), pages 1-20, October.
    3. Tomas Baležentis, 2016. "Stochastic production frontier for the Lithuanian family farms," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(2), pages 283-298, April.
    4. Monika Stanny & Łukasz Komorowski & Andrzej Rosner, 2021. "The Socio-Economic Heterogeneity of Rural Areas: Towards a Rural Typology of Poland," Energies, MDPI, vol. 14(16), pages 1-23, August.
    5. Henningsen, Geraldine & Henningsen, Arne & Henning, Christian H.C.A., 2011. "Measuring the Influence of Information Networks on Transaction Costs Using a Non-parametric Regression Technique," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114547, European Association of Agricultural Economists.
    6. Tomas Baležentis & Aistė Galnaitytė & Irena Kriščiukaitienė & Virginia Namiotko & Lina Novickytė & Dalia Streimikiene & Rasa Melnikiene, 2019. "Decomposing Dynamics in the Farm Profitability: An Application of Index Decomposition Analysis to Lithuanian FADN Sample," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    7. Freshwater, David, 2017. "Znaczenie wzrostu atrakcyjności i możliwości zatrudnienia pozarolniczego dla małych gospodarstw rolnych," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).

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