The study aimed to examine the changes in income inequalities in Polish farms and the impact of introducing the threshold of direct payments for farms (EUR 60 000) to form these inequalities. The research was based on data from the Farm Accountancy Data Network (FADN) for the years: 2006, 2013 and 2018. In each year, the sample included at least 10 000 observations that represented over 700 000 farms. The results were verified using statistical tests relating to the comparisons of averages and distributions of farm income for two samples and the Gini coefficient. The study noted deepening income inequalities in Polish farms, as evidenced by the increasing value of the Gini coefficient in the subsequent years and the growing share of payments in the formation of these inequalities. Neither for the sample analysed nor the field of observation of farms will introduce the threshold for direct payments per farm of at least EUR 60 000 (including labour costs) change the polarisation of income.
Purpose The purpose of this paper is to analyse tendency of farms to switch from conventional to organic production. Design/methodology/approach The study used data on 6,229 individual farms, which in 2009–2016 continued to participate in the Polish FADN. Estimation of logit models allowed the authors to indicate, separately for each period in the years between 2009 and 2015, a set of characteristics influencing the decision of farms on the use of organic production. Findings The authors demonstrate that, first of all, land factors were of major importance when deciding on conversion to organic farming, with only the own land inputs (owned by the farm) having a positive impact on the transition of farms to organic production. But then the resource of the capital factor, identified with the assets owned by the farm, exercised a significant negative impact. Income derived from the family farm, although had a positive impact, did not significantly determine the farm’s decision on conversion to organic production. While support for agri-environmental purposes had a positive impact on the decision of farm to convert, the payments received under the direct payments affected this decision negatively. The tendency to start organic production is also conditioned regionally. Research limitations/implications The data of this study are limited in size, and limited to the Polish context. Originality/value The research setting for this paper is original; the study takes part in the discussion about factors of conversion to organic farming, on example of Poland and is a voice in the discussion on effective support for the development of organic farming in the context of sustainable development.
Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.
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