RESEARCH PAPER
THE LOCAL INSTITUTIONS AND TRANSACTION COSTS OF PUBLIC AID INTHE PROCESS OF AGRICULTURE MODERNIZATION
 
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Politechnika Rzeszowska im. Ignacego Łukasiewicza
CORRESPONDING AUTHOR
Dariusz Andrzej Kusz   

Politechnika Rzeszowska im. Ignacego Łukasiewicza
Publish date: 2019-06-25
Submission date: 2019-04-26
Acceptance date: 2019-06-07
 
Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 2019;359(2):43–68
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ABSTRACT
Objectives:
The main goal of the paper was to determine local institutions (organizations) and assessment of the level of private transaction costs incurred by beneficiaries of public aid related to the modernization of farms.

Material and methods:
The research was held in 2012 among 129 farms, which in 2004-2011 benefited from public financial aid. Selected farms were researched with the use of interview questionnaire concerning organisation of farms, obtained economic results, assessment of executed investments and relations of farmers with local institutions of the agricultural environment and the level of private transaction costs. An estimation of the level of private transaction costs related to the public aid was made on the basis of information obtained from farmers under the interview.

Results:
It was found that for farmers the most important were the Centre for Advisory Agricultural Service and the Agency for Restructuring and Modernization of Agriculture. According to the farmers, the main barriers to cooperation were high costs of using the services and difficult access to the institutions.

Conclusions:
The estimated level of private transaction costs borne by the beneficiaries to the acquired investment subsidies was on the low level and should not constitute a barrier to obtaining public aid. On farms characterized by lower value of investment outlays, the level of private transaction costs to the acquired investment subsidies was at a higher level than in other groups of farms. The largest share in the structure of estimated private transaction costs was related to the costs of collecting documentation and filling out applications.

eISSN:2392-3458
ISSN:0044-1600