Effectiveness of Polish Farms. A Problem or a Hope?

Abstract

An analysis has been conduced of the sales profitability and technical efficiency of selected groups of Polish farms in 2004–2006. These groups of farms differ in terms of size measured in ESU as well as in terms of agricultural type and form of ownership. It has been established that over 90% of farms owned by natural persons is characterised by insufficient technical efficiency. The average technical efficiency index for farms owned by legal persons reached the level of 0.75, whereas the index for farms belonging to natural persons and specialising, for example, in the production of milk proved to be 0.68. This means that outlays in the two groups of farms could be reduced by at least 20% and 27%, respectively, without a negative effect for their production results. There is evidence suggesting that about a half of all owners of farms is not interested in the improvement of their effectiveness and that the greater part of the remaining farm owners lacks the knowledge of management and marketing methods and even the knowledge of advanced techniques and technologies of agricultural production. In addition, they display weak pro-innovative attitudes.