Determinants of a Balanced Economic and Social Development of Family Agricultural Farms in Poland Cover Image

Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce
Determinants of a Balanced Economic and Social Development of Family Agricultural Farms in Poland

Author(s): Sebastian Stępień, Jan Polcyn, Michał Borychowski
Subject(s): Agriculture, Economic policy, Political economy, Economic development, Socio-Economic Research
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: small agricultural farms; economic and social balance; Poland;

Summary/Abstract: The discussion on a balanced development of small agricultural farms is justified by the importance of the very concept of a balanced economic and social development of agriculture and the important role of small family farms in the Polish agriculture. In this subject area, there is an evident research gap regarding cross-sectional research concerning small family farms. The analysis of this subject presented in this article is based on theoretical concepts of political economy and new institutional economics. The main aim of the article is to identify microeconomic and political factors and market links that affect the level of economic and applying the TOPSIS method, the authors calculated first the degree of economic and social balance in individual farms, and then using the multiple regression they estimated the impact of the selected factors on the equilibrium level. The analysis indicates that the key determinant of a balanced development of agricultural farms is their integration with the market and their position in the marketing chain. Efficient distribution channels and trade links strengthen the economic and social position of the farm. A positive effect is also provided by the education and young age of the farmer, as well as by the output volume and size of the farm. On the other hand, a high share of EU subsidies in the farmer’s income hampers a balanced development of the farm. As far as production structure is concerned, a mixed production model contributes more to a balanced development of the farm than the one-sided specialization in the vegetable or animal production. These dependencies may be an important advice for the policy providing governmental support for small agricultural farms in Poland.

  • Issue Year: 2021
  • Issue No: 1
  • Page Range: 56-86
  • Page Count: 31
  • Language: Polish
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