What Determines the Profitability of Agricultural Production? Reflections on the Example of Farms in Poland Cover Image

Co determinuje opłacalność produkcji rolnej? Rozważania na przykładzie gospodarstw rolnych w Polsce
What Determines the Profitability of Agricultural Production? Reflections on the Example of Farms in Poland

Author(s): Agnieszka Strzelecka, Agnieszka Kurdyś-Kujawska, Danuta Zawadzka
Subject(s): Economy, Business Economy / Management, Agriculture, Transport / Logistics
Published by: Społeczna Akademia Nauk
Keywords: factors; profitability of agricultural production; logistic regression model

Summary/Abstract: The aim of the research is to identify endogenous factors related to the farm’s potential, affecting the profitability of agricultural production and to assess their significance for shaping the relation of the value of agricultural production to the level of costs in curredon the farm. The study was based on data from the Polish FADN. The research sample included 12,027 individual farms, which in 2015 ran agricultural accounting. The logistic regression model was used to determine the factors affecting the probability of higher profitability of production. The formal selection of parameters with variables was made using the back wardelimination method. It has been shown that a statistically significant positive impact on the probability of obtaining higher profitability of agricultural production is obtained by: human labor input and effective use of this production factor (labor productivity), the value of crop production per 1 ha and the value of animal production per 1 LU, production specializationas well as investments in fixed assets. On the other hand, the negative, statistically significant impact on the profitability of production was due to: the value of fixed assets, technical land utilities, the amount of direct costs and the amount of external factors.

  • Issue Year: 19/2018
  • Issue No: 4.2
  • Page Range: 349-362
  • Page Count: 14
  • Language: Polish