Agric. Econ. - Czech, 2022, 68(2):59-67 | DOI: 10.17221/361/2021-AGRICECON

The income-assets relationship for farms operating under selected models in PolandOriginal Paper

Aleksander Grzelak ORCID...
Department of Macroeconomics and Agricultural Economics, Institute of Economics, Poznań University of Economics and Business, Poznań, Poland

The aim of this paper is to outline the relationship between income and assets when taking into account selected models of farms' functioning. The following farm models are examined: traditional, industrial, sustainable, and organic. Panel models were used that were based on the results of individual unpublished data for farms in Poland that undertook agricultural accounting according to the Farm Accounting Data Network (FADN) principles from 2004 to 2019. It was found that industrial farms had the clearest income-assets relationship, while traditional farms had the least clear relationship. The value of land, as a component of assets, was found to weaken the income-assets relationship. In consequence, the value of assets increased faster than income. Thus, the farmers are becoming wealthier in terms of the value of their assets, but this is not reflected in their income.

Keywords: agriculture; Common Agricultural Policy (CAP); economic situation; panel models; wealth effect

Published: February 18, 2022  Show citation

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Grzelak A. The income-assets relationship for farms operating under selected models in Poland. Agric. Econ. - Czech. 2022;68(2):59-67. doi: 10.17221/361/2021-AGRICECON.
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