Does being located in less-favored areas weaken the profitability of Polish farm households? Empirical evidence

• Autorzy: Pastusiak R. , Jasinaik M. , Soliwoda M. , Stawska J.
• Języki publikacji: EN

Abstrakty

EN

Detailed analysis of Hill [1] based on EU FADN data indicate that the level of “incomes of farms in LFAs was lower than those in non-LFAs, even after including the special payments that the former receive.” The following question arises as to whether being located on less-favored areas may alter significantly the financial efficiency of farms and whether it is possible to identify such measures that would improve financial efficiency at a farm level and preserve the environmental value of the LFA and implement sustainable development policies. The article proposes an analysis of profitability according to criteria regarding being located on LFA, taking into account the peculiarities of production orientation. This is an important issue, not only from a scientific point of view but also an important element for agricultural policy and the issue of subsidies to agricultural holdings located in areas of environmental constraints. We confirmed that in Poland in 2009-2014 the farms located on LFAs significantly differentiate the financial efficiency of farms and are significantly less profitable assets and use financial resources less effectively than farms located in favorable areas. We also proved that farms located on LFAs that specialize in crop productions are described by the highest profitability.

• Wydawca: -
• Czasopismo: Polish Journal of Environmental Studies
• Rocznik: 2019
• Tom: 28
• Numer: 4
• Opis fizyczny: p.2331-2343,ref.

Twórcy

autor

Pastusiak R.

• Corporate Finance Department, Faculty of Economics and Sociology, University of Lodz, Lodz, Poland

autor

Jasinaik M.

• Corporate Finance Department, Faculty of Economics and Sociology, University of Lodz, Lodz, Poland

autor

Soliwoda M.

• Institute of Agricultural and Food Economics, National Research Institute, Warsaw, Poland

autor

Stawska J.

• Central Banking and Financial Intermediation Department, Faculty of Economics and Sociology, University of Lodz, Lodz, Poland

Bibliografia

• 1. HILL B., BRADLEY D. Comparison Of Farmers’ Incomes In The EU Member States Study, Directorate-General For Internal Policies Policy Department B: Structural And Cohesion Policies Agriculture And Rural Development, 2015.
• 2. RAHMAN S., HASAN M.K. Environmental constraints and profitability relationships in agriculture: a case study of wheat farming in Bangladesh. Journal of the Asia Pacific Economy, 16, (4), 630, 2011.
• 3. SHERLUND S.M., BARRETT C.B., ADESINA A.A. Smallholder technical efficiency controlling for environmental production conditions. Journal of Development Economics, 69, 851, 2002.
• 4. TERLUIN I.J., GODESCHALK F.E., VON MEYER H. AND STRIJKER D. Agricultural Income in Less Favoured Areas of the EC: A Regional Approach. Journal of Rural Studies 11 (2), 217, 1995.
• 5. DAX T., HELLEGERS P. Policies for less-favored areas. CAP Regimes and the European Countryside: Prospects for Integration between Agricultural, Regional and Environmental Policies, Wallingford: CAB International, 179, 2000.
• 6. DWYER J., BALDOCK D., BEAUFOY G., BENNETTH., LOWE P., WARD W. Comparative report by IEEP: Europe’s Rural Futures - The Nature of Rural Development II, London, 2002.
• 7. DAX T., HOVORKA G. A holistic approach to mountain development research: Experiences from the Federal Institute for Less-Favoured and Mountainous Areas, Austria, Paper given at The Innovative Structures for the Sustainable Development of Mountainous Areas (ISDEMA) Conference, School of Agriculture, Aristotle University of Thessaloniki, 8-9 November 2002.
• 8. DAX T. The Redefinition of Europe’s Less Favoured Areas. 3rd Annual Conference ‘Rural Development in Europe’ – Funding European Rural Development in 2007-2013. London, 15-16 November 2005.
• 9. European Commission. Less-favoured areas scheme, Retrieved from https://ec.europa.eu/agriculture/ruraldevelopment- previous/2007-2013/less-favoured-areasscheme_ pl (19.08.2017).
• 10. KULAWIK J., MAJEWSKI E., PAWŁOWSKA-TYSZKO J., WĄS, A., WIELICZKO B. Budgetary determinants of the competitiveness of agriculture (Budżetowe uwarunkowania konkurencyjności rolnictwa) [in:] The CAP and the competitiveness of the Polish and European food sector (WPR a konkurencyjność polskiego I europejskiego sektora żywnościowego) (ed. Kowalski A, Wigier M., Wieliczko B.). IERiGŻ-PIB, Warsaw, 28, 2014 [In Polish].
• 11. BERGER T., SCHREINEMACHERS P., WOELCKE J. Multi-agent simulation for the targeting of development policies in less-favored areas. Agricultural Systems, 88 (1), 28, 2006.
• 12. BIGMAN D. Globalization and the Developing Countries. Emerging Strategies for Rural Development and Poverty Alleviation. CAB International and ISNAR, Wallingford, 2002.
• 13. FAN S., CHAN-KANG C. Returns to investment in less-favored areas in developing countries: a synthesis of evidence and implications for Africa. Food Policy, 2004.
• 14. RUBEN R., KUYVENHOVEN A., HAZELL P. Investing in poor people in less-favored areas: institutions, technologies, and policies for poverty alleviation and sustainable resource use. Staying Poor: Chronic Poverty and Development Policy’at IDPM, University of Manchester, 7, 2003.
• 15. KUYVENHOVEN A. Creating an enabling environment: policy conditions for less-favored areas. Food Policy, 29 (4), 407, 2004.
• 16. DE JANVRY A., SADOULET E., ARANJO C. Geography of poverty: territorial growth and rural development. World Bank ABCDE Paper, Washington, DC, April 30, 2002.
• 17. JOURNEAUX P. The effect of environmental constraints on land prices. AGFIRST, 2015.
• 18. SOJKOVÁ Z., KROPKOVÁ Z., BENDA V. Slovak agricultural farms in different regions-comparison of efficiency. Zemedelska Ekonomika-Praha, 54 (4), 158, 2008.
• 19. ANDERSON D.J., KEATLEY P. What LFA beef and sheep farmers should do and why they should do it. In 83rd Annual Conference, March 30-April 1, Dublin, Ireland: No. 50930. Agricultural Economics Society, 2009.
• 20. PENDER J., HAZELL P. Focus 4. Promoting sustainable development in less-favored areas. International Food Policy Research Institute, Washington, 2000.
• 21. UEMATSU H., KHANAL A.R., MISHRA A.K, The impact of natural amenity on farmland values: A quantile regression approach. Land Use Policy, 33, 151, 2013.
• 22. PROGRAM. Rural Development Program for 2014-2020. (Program Rozwoju Obszarów Wiejskich na lata 2014-2020). The Ministry of Agriculture and Rural Development, Warsaw, 2017 [In Polish].
• 23. MATUSZAK-FLEJSZMAN A., HADRYJAŃSKA B., GÓRNA J. Changes in Environmental Management after Poland’s Entry to the EU-the Example of the Dairy Sector. Polish Journal of Environmental Studies, 22 (3), 2013.
• 24. 24. GÓRAL J. Subsidies versus economics, finances, and income of farms. 2, IAFE-NRI Press, Warsaw 2016.
• 25. KLEPACKA-KOLODZIEJSKA D. Support for less favored areas as an instrument affecting the development of rural areas in Poland (Wsparcie obszarów o niekorzystnych warunkach gospodarowania jako instrument oddziałujący na rozwój obszarów wiejskich w Polsce). Folia Pomer. Univ. Technol. Stetin., Oeconomica, 268 (54), 45, 2009.
• 26. SUTKOWSKA B., ROZBICKI J., GOZDOWSKI D. Farming Systems in High Nature Value (HNV) Farmland: a Case Study of Wigry National Park, Poland. Polish Journal of Environmental Studies, 22 (2), 2013.
• 27. NEHRING R., GILLESPIE J., HALLAHAN CH., HARRIS J.M., ERICKSON K. What is driving the economic and financial success of US cow-calf operations?. Agricultural Finance Review, 74, (3), 311, 2014.
• 28. NIEWĘGŁOWSKA G. The impact of payments for less-favored areas (LFA) on agricultural firms in Poland (Wpływ płatności dla obszarów o niekorzystnych warunkach gospodarowania (ONW) na gospodarstwa rolne Polsce), IERiGŻ-PIB, Warsaw 2008 [In Polish].
• 29. AGENCY OF RESTRUCTURING AND MODERNIZATION OF AGRICULTURE. Payments for areas with natural constraints or other specific restrictions (so-called LFA payments) – Basic information - campaign 2015 (Płatności dla obszarów z ograniczeniami naturalnymi lub innymi szczególnymi ograniczeniami (tzw. płatność ONW) – podstawowe informacje - kampania 2015) Retrieved from http://www.arimr.gov.pl /pomoc-unijna /prow-2014 -2020/ dzialanie-13-platnosci-dla-obszarow-z-ograniczeniami naturalnymi-lub-innymi-szczegolnymi-ograniczeniami tzw- platnosc-onw-podstawowe-informacje/platnosci-dla obszarow-z-ograniczeniami-naturalnymi-lub-innymi szczegolnymi- ograniczeniami-tzw-platnosc- onw-podstawowe-informacje-kampania-2015.html (19.08.2017) [In Polish].
• 30. KOPIŃSKI J. The impact of the CAP on the organization and economic effects of farms with different production directions (Wpływ WPR na organizację i efekty ekonomiczne gospodarstw o różnych kierunkach produkcji). Annals SERiA, XIV (3), 197, 2012.
• 31. FADN (2017). Organisation of European FADN (Organizacja Europejskiego FADN). Retrived from:http://fadn.pl/organizacja/europejski-fadn/organizacjaeuropejskiego-fadn/(19.08.2017) [In Polish].
• 32. BARRY P.J., ELLINGER P.N. Financial Management in Agriculture. 7th Edition. Upper Saddle River, NJ: Prentice-Hall, 2012.
• 33. STEFANI G., GADANAKIS Y., LOMBARDI G.V., TIBERTI M. The impact of financial leverage on farms capacity to react to market shocks. Proceedings of European Association of Agricultural Economists (EAAE), International Congress, August 28-September 1, Parma, Italy, 2017.
• 34. LANGEMEIER M. Leverage and Financial Risk, “farmdoc daily”. 6, 28, Department of Agricultural and Consumer Economics, the University of Illinois at Urbana-Champaign, February 12, 2016.
• 35. KOPIŃSKI A. Financial analysis of a group of companies with the standard systems of inequalities (Analiza finansowa grupy przedsiębiorstw za pomocą wzorcowych układów nierówności). Scientific Papers of the University of Szczecin (Zeszyty Naukowe Uniwersytetu Szczecińskiego) 768, Finance, Financial Markets, Insurance (Finanse, Rynki Finansowe, Ubezpieczenia). 3, 261, 2013 [In Polish].
• 36. MISHRA A.K., EL-OSTA H.S., STEELE C.J., Factors affecting the profitability of limited resource and other small farms. In: Agricultural Finance Review. 59, 78, 1999.
• 37. MISHRA A.K., HARRIS J.M., ERICKSON K.W., HALLAHAN CH., DETRE J.D. Drivers of agricultural profitability in the USA: An application of the Du Pont expansion method. Agricultural Finance Review. 72 (3), 325, 2012.
• 38. NEHRING R., GILLESPIE A.L., HALLAHAN CH., HARRIS J.M., ERICKSON K. What’s Driving U.S. Broiler Farm Profitability? International Food and Agribusiness Management Review. 18 (A), 59, 2015.
• 39. ENJOLRAS G., SENTIS P. Crop insurance policies and purchases in France, Agricultural Economics 42, 475, 2011.
• 40. KRÓLCZYK J.B., LATAWIEC A.E., KUBOŃ M. Sustainable Agriculture – the Potential to Increase Wheat and Rapeseed Yields in Poland. Polish Journal of Environmental Studies. 23 (3), 663, 2014.
• 41. NIEWĘGŁOWSKA G. Chances and limitations of farms located in the area of environmental restrictions based on the data of the Polish FADN (Szanse i ograniczenia gospodarstw położonych w strefie ograniczeń środowiskowych na podstawie danych Polskiego FADN). Journal of Agribusiness and Rural Development. 2 (12), 147, 2009 [In Polish].
• 42. KEULEN H. Heterogeneity and density in less-favored areas. Agricultural Systems 88, 1, 2006

Identyfikatory

DOI

10.15244/pjoes/86197