RESEARCH PAPER
SITUATION AND OPPORTUNITIES OF DEVELOPMENT OF COMMERCIAL FARMS CONSIDERED TO BE ECONOMICALLY WEAK
 
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Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej – PIB
 
 
Acceptance date: 2011-03-14
 
 
Publication date: 2011-03-14
 
 
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2011;326(1):81-104
 
ABSTRACT
The aim of the study was to evaluate the economic situation of three groups of farms, singled out of a sample with the economic size of 2 to 8 ESU. Farms are grouped according to the level of income from the farm, and the results are presented in a quartile system. The objective of the study was to define perspectives for the future functioning of farms in the distinguished groups of the best, average and the weakest farms. The data of the Polish FADN were used in the study. The analysis carried out indicate that the best farms have the biggest chance for longer functioning in future. In comparison to the average and the weakest ones, they had a better structure of assets and capital. The property was used more effectively in those holdings and working assets, including loan capital for current production, were also managed more rationally. Fixed assets replacement was more active as well. Only those farmers, whose farms were recognised as the best, could expect to obtain income (profit) from good management. Those from the average and weakest groups incurred financial losses, which means that total production costs (economic costs) were only partially covered. Analysis of the property status and financial situation shows that persons managing the farms covered by the study, including those from the best group, should make significant changes to their management methods.
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