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Significance of public funds in investment activity of farms in Poland (on the example of Podkarpacie)

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  • Kusz, Dariusz

Abstract

The paper aims at assessment of the public funds support to investment activities of agricultural holdings and determination of how possible it was to fund the implemented investments without the state aid. The research was held in 2012 among 129 farms, which in 2004-2011 benefited from public financial aid in their investment activity. The selected farms were researched with the use of interview questionnaire concerning organisation of farms, obtained economic results and assessment of executed investments. To determine the possibilities of financing investments at researched farms without the public financial aid the linear programming method was used to develop models of farms, where public financial aid was replaced with commercial loan or own cash, if possible. It was decided that state aid in financing investments should be directed at farms likely to develop, which are not able to finance investments without state aid. Farms, which are too small to guarantee independent development in the future, and too large, which can gather up funds for investments without state aid, should be excluded from the support.

Suggested Citation

  • Kusz, Dariusz, 2015. "Significance of public funds in investment activity of farms in Poland (on the example of Podkarpacie)," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 235487, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:235487
    DOI: 10.22004/ag.econ.235487
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    References listed on IDEAS

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    1. Hubbard, R Glenn & Kashyap, Anil K, 1992. "Internal Net Worth and the Investment Process: An Application to U.S. Agriculture," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 506-534, June.
    2. Mundlak, Yair, 1985. "The Aggregate Agricultural Supply," Working Papers 232646, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    3. 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.
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    Cited by:

    1. Kusz, Dariusz & Zając, Stanisław & Dziekan, Ryszard, 2020. "Regional Diversification Of Investment Outlays And Labour Profitability In Agriculture In Poland," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(4).
    2. Dariusz Kusz & Bożena Kusz & Paweł Hydzik, 2022. "Changes in the Price of Food and Agricultural Raw Materials in Poland in the Context of the European Union Accession," Sustainability, MDPI, vol. 14(8), pages 1-21, April.

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