The article presents the economic effectiveness of farming by land lessees when compared to farms using their own land. The study was carried out on the selected groups of limited liability companies using leased land (Group 1.), own land but with a significant share of foreign capital (Group 2.) and own land with a predominance of own capital (Group 3.). All farms participaded in the „Ranking 300” carried out by the IAFE-NRI in the years 2009-2014. The study adopted the following research hypothesis: „Land lease makes it possible to pursue the economic activity giving the higher current economic effects from land being used than in a situation where this land is owned”. The studies confirmed this hypothesis. Farms run by land lessees obtained the higher values for land, labour, assets and own capital profitability indices than those using own land. With regard to the land, labour and capital productivity, the better effects were obtained by farms from Group 3.
The paper aims to present the method to facilitate assigning a farm to the competitiveness status based
the advantage of resource ownership and economic efficiency of its functioning. Despite flaws in a form
of assigning entire economic rent to the sphere of skills, the presented method allows to situate farms in
various areas and to assess them. It is a proposal to expand the measurement of competitiveness of farms
at the microeconomic level.
the paper presents the role and importance of land lease in structural changes in agriculture and its relations to efficiency of farming. it was demonstrated that land lease was a more efficient and cheaper method of increasing farm area (production scale) than land purchase. research was held on selected limited liability companies using leased land (1 st group) and own land (2 nd group), and participating in the "ranking 300" run by the institute of agricultural and Food economics-National research institute between 2009 and 2014. research results showed that farms run by lessees reached higher return on equity and Value creation index. the differences were not statistically confirmed, which meant that they were not significant. on the other hand, farms using own land have shown a higher level of financial security, as evidenced by higher values of liquidity ratios (current and quick) and cash flow-to-debt ratio. the hypothesis that "the lessee is more efficient than the owner" was not fully confirmed.
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