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Economic Situation and Development Perspectives of Farms in Poland - An Analysis Based on Survey Data from Selected Polish Voivodships and a Comparison with German Farms

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  • Petrick, Martin
  • Spychalski, Grzegorz
  • Switlyk, Michal
  • Tyran, Ewa

Abstract

The aim of this paper is to present an analysis of farm-level data collected in a survey of 464 Polish farms in 2000. Performance indicators of farms in three Polish voivodships are compared with farm accountancy data from two German Länder. The results show that Polish farms are much less profitable than their German counterparts. The gap in income levels is much higher between persons employed in the agricultural sector than between average working persons in the two countries. Living standards of the Polish farm population in the north-west exceed those in the south-east of the country. The analysis suggests that the lower profitability of farms has two major reasons. First, farms in the German regions receive much higher levels of subsidies. Second, there are pronounced structural deficiencies due to a quite unfavourable workforce-land ratio on Polish farms. These farms are less productive and less specialised than the German farms analysed. There is a generally conservative attitude among Polish farmers that prefers the continuation of farming over leaving the sector. Nevertheless, income from agriculture is to a substantial extent complemented by off-farm employment in the southern regions. Our overall conclusion is that Polish farms currently are in the midst of a regional, economic, and social differentiation process fuelled by severe imbalances in terms of income levels between rural and urban population groups. This process is however seriously slowed down or even halted by a number of effective institutional barriers, particularly with regard to rural labour markets. These barriers should be properly addressed by a formulation of future policies in order to avoid further social frictions in the course of the Polish EU accession.

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  • Petrick, Martin & Spychalski, Grzegorz & Switlyk, Michal & Tyran, Ewa, 2002. "Economic Situation and Development Perspectives of Farms in Poland - An Analysis Based on Survey Data from Selected Polish Voivodships and a Comparison with German Farms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 51(4), pages 203-214.
    • Handle: RePEc:zbw:espost:304538
    DOI: 10.52825/gjae.v51i4.1516
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    1. David Mushinski, 1999. "An analysis of offer functions of banks and credit unions in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 36(2), pages 88-112.
    2. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng, Luo, 1989. "Agricultural credit and farm performance in China," Journal of Comparative Economics, Elsevier, vol. 13(4), pages 508-526, December.
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    1. Petrick, Martin & Latruffe, Laure, 2003. "Credit access and borrowing costs in Poland's agricultural credit market: a hedonic pricing approach," IAMO Discussion Papers 46, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. Petrick, Martin, 2004. "Farm investment, credit rationing, and governmentally promoted credit access in Poland: a cross-sectional analysis," Food Policy, Elsevier, vol. 29(3), pages 275-294, June.
    3. Petrick, Martin, 2002. "Farm Investment, Credit Rationing, And Public Credit Policy In Poland: A Microeconometric Analysis," IAMO Discussion Papers 14872, Institute of Agricultural Development in Transition Economies (IAMO).
    4. Czubak, Wawrzyniec & Pawłowski, Krzysztof Piotr & Sadowski, Arkadiusz, 2021. "Outcomes of farm investment in Central and Eastern Europe: The role of financial public support and investment scale," Land Use Policy, Elsevier, vol. 108(C).
    5. Martin Petrick & Laure Latruffe & . Leibniz Institute of Agricultural Development In Central And Eastern Europe, 2004. "Measuring the quality of agricultural credit contracts : a hedonic regression analysis of borrowing costs on Polish credit markets," Post-Print hal-02392196, HAL.
    6. Petrick, M., 2004. "Investitionsverhalten und staatliche Kreditförderung in der polnischen Landwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    7. Petrick, M., 2003. "Sind Polens Landwirte kreditrationiert? Eine mikroökonomische Analyse von Marktversagen in Transformationsprozessen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 38.
    8. Petrick, Martin & Latruffe, L., 2005. "Measuring the Quality of Agricultural Credit Contracts – A Hedonic Regression Analysis of Effective Interest Rates on Polish Credit Markets," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.

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