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The research was performed to define development perspectives of farms located on meadows in Upper Narew valley with restrictions imposed by environmental protection. The attempt was made to answer the question, whether environmental protection can comply with the agricultural and economic requirements. In practice there was a need for a scientific of economic and production models of farms which could match specified economic conditions (established labour and capital productivity level), taking into account environmental and landscape protection restrictions in three distinctive parts of Upper Narew valley. The research yielded the conclusion that, farms located in part I and III of the valley have thus far a prospect of further development by sensible intensification of production on permanent meliorated grassland. By augmenting their production and mastering economic results the farms can grow in the area by means of purchasing new land and getting more competitive on the agricultural products marked. The situation is somewhat different, if located in the protected part II of the valley are concerned. These farms have been actually deprived of huge parts of previously possessed land which could be subject to melioration as in part III and to some extend, part I of the valley. As a result neither can these farms secure demanded economic results, nor can they develop by intensification of production on land in the Narew valley. Shortage of income yielding from this intensification results in their disability of increasing farms’ area in order to augment the scale of production leading to benefits in agricultural population income. The only gain these farms can count on is eligibility for state and environmental organisations subsidies, which could cover their loses created by environmental protection. The level of such subsidies should generate annual income similar to that acquired by forms located im meliorated part III of the valley. It should be equal to roughly 115 US$ per 1 ha of agricultural land annually.
The aim of the studies was to determine the anticipated level of agricultural production intensity and development perspectives for agricultural farms in the Kurpiowska Valley under the conditions of economically and ecologically balanced development. The analysis and evaluation of the target level of agricultural production organization and intensity in discussed Valley were performed, by use of model economic analysis method. It results from the studies that shaping ecologically and economically balanced agricultural areas in the regions dominated by pastural-breeding management, requires the changes in structure of land utilization; it is supported by the example of Kurpiowska Valley. Such a task consists mainly in the transformation of a part of very dry meadow habitats into arable land and arable land on very weak soils of class VI into forest grounds. At the territory of Kurpiowska Valley, there is a possibility to reconcile the principles of eco-development with maintaining of effectiv agricultural production on adequately high level, allowing the farmers to develop their farms. It may be reached by full utilization of productive potential of permanent grassland and by effective processing of meadow and pastural forage into milk and beef.
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