Divestments in Agricultural Farms – Essence, Definitions, Division

Abstract

Processes leading to reductions in the agricultural production of farms or to the abandonment of such production are becoming more and more frequently observable. Simultaneously, the process of relocation of resources is under way, which leads to the transfer of a considerable part of these resources to non-agricultural sectors of the economy. Such phenomena are being described in scientific literature as an economic collapse and bankruptcy of agricultural farms, which is unjustified in many cases. Decisions to limit production and reduce the engagement of the resources of farmers’ families in agricultural production can be seen as elements of the restructuring of specific economic entities that agricultural farms are. One of the strategic options of such restructuring can be divestments. In the presented paper efforts were launched to adapt the term “divestments” for the purposes of agricultural economics, which is indispensable to facilitate the analysis and description of processes occurring in agricultural farms. The considerations included in the paper do not cover all aspects of the problem. It is necessary to examine the scale, the course, the structure and the effectiveness of divestments in agriculture for these issues have not been described so far in any publications.