EN
High share of mechanization in costs of agricultural production (in some developed countries up to 40%) emphasizes the significance of interrelations between agriculture and farm machinery industry. The purpose of this paper is to present some aspects of these interrelations from the point of view of competitiveness of both branches on international markets. So far the Polish made machines are cheaper as compared with the ones imported from Western countries. At the end of 1995 the price of 35 kW four wheel driven was in FRG and France twice higher then in Poland. The price of cereal harvester was in France three times higher. This comparison does not take into consideration the quality differences. However, at present Polish made machines are more convenient for our farmers (as compared to the imported from West) on account of prices and satisfactory as far as technical level is concerned. Prices of farm machines have significant effect on production costs in contemporary mechanized agriculture. Also demand for tractors and implements depends on the prices. Higher demand makes it possible to increase the level of serial production and thus to decrease the fixed costs at factories. Therefore there is a common interest of farmers and farm machinery producers to keep the prices on the level stimulating the demand. The purchasing power of farmers depends of price relations between farm machinery and agricultural products. The future shape of Polish farm machinery industry will depend on capacity to adjust to changing macroeconomic conditions. The improvement of the efficiency and quality of products as weil as the efficient marketing system will be necessary to ensure the competitiveness of Polish made farm machines on home and international markets. Instead the border barriers against the foreign competition would cause attenuation of incentives stimulating the implementation of technological and organization innovations.