It is estimated that about 1/4th of all greenhouse gas (GHG) emissions may be caused by the global food system. Reducing the GHG emissions from food production is a major challenge in the context of the projected growth of the world’s population, which is increasing demand for food. In this context, the goal should be to achieve the lowest possible emission intensity of the food production system, understood as the amount of GHG emissions per unit of output. The study aimed to calculate the emission intensity of food production systems and to specify its determinants based on a panel regression model for 14 countries, which accounted for more than 65% of food production in the world between 2000 and 2014. In this article, emission intensity is defined as the amount of GHG emissions per value of global output. Research on the determinants of GHG emissions related to food production is well documented in the literature; however, there is a lack of research on the determinants of the emission intensity ratio for food production. Hence, the original contribution of this paper is the analysis of the determinants of GHG emissions intensity of food production systems. The study found the decreased of emission intensity from an average of more than 0.68 kg of CO2 equivalent per USD 1 worth of food production global output in 2000 to less than 0.46 in 2014. The determinants of emission intensity decrease included the yield of cereals, the use of nitrogen fertilizers, the agriculture material intensity, the Human Development Index, and the share of fossil fuel energy consumption in total energy use. The determinants of growth of emission intensity of food production systems included GDP per capita, population density, nitrogen fertilizer production, utilized agriculture area, share of animal production, and energy use per capita.
Ensuring adequate profitability of production, which can be ensured by optimal investments, can encourage farmers to be more caring about sustainable development. Several existing studies indicate that technical efficiency in agriculture varies regionally. Investments comprise a basic way to increase efficiency and thus reduce polarisation between regions. However, contrary to established assumptions, not every investment leads to increased efficiency, which entails a phenomenon of overinvestment. Investments should, by definition, be positively correlated with efficiency. However, existing studies indicate the existence of a significant problem of overinvestment, where increased efficiency may not occur. While for about 40% of farms in Poland the scale of investments can be assessed as optimal, more than quarter of farms exhibited absolute overinvestment and nearly one in five farms is underinvested. In response to this problem, this study aimed to identify regional differences in Poland with regard to overinvestment in farms, as well as to determine changes in farm efficiency depending on the region and level of overinvestment. The source material used in the following article consisted of unpublished Farm Accountancy Data Network (FADN) microdata derived from the DG AGRI of the European Commission. The study covered the period 2004–2015. For an original classification of farms according to their level of overinvestment the technical efficiency, using the stochastic frontier analysis approach, was used for determining regional differences that occurred as a result of overinvestment. Stochastic frontier analysis shown noticeable differences in the average technical efficiency for different overinvestment groups. As expected, underinvested farms are the least efficient (general in Poland and in all analyzed regions) and average technical efficiency did not increase. Interestingly, optimally investing farms do not have the highest technical efficiency. Higher efficiency was achieved by both relatively and absolutely overinvested farms. This is due to the fact that in order to produce efficiently in agriculture, it is necessary to at least maintain the level of tangible assets provision, and preferably to increase it as well. In terms of overinvestment levels, farm structure does not differ significantly between individual regions in Poland. However, there are differences between regions in terms of farm efficiency within each group. In all regions, only the underinvested farms did not increase their efficiency over the period under review and the highest efficiency growth rate was in regions where farms were least efficient at baseline.
The purpose of this paper was to assess the level of overinvestment in Polish farms grouped by economic size. As the volume of investments clearly continues to grow, the authors noticed the need to address that problem. Using FADN data, they developed their own method for measuring overinvestment, and identified its size and extent. Indeed, overinvestment proves to be widespread in Polish agriculture. The reasons probably include inadequate subsidies allocated under European Union aid schemes, and improper farm management practices. In the future, this could give rise to dysfunctions, ultimately resulting in farm bankruptcies.
Organic agriculture is a relatively new production system, which is growing in importance worldwide. As in all enterprises, economic results are important for organic farms. This article aims to determine the economic situation of organic farms against the background of conventional entities on the example of Poland by comparing production potential and relations between production factors, production volume, and the economic results. The analysis was based on the data of the Polish FADN. Since organic farms in Poland are subject to the special EU support, the economic results were presented in two variants, i.e. with and without subsidies for operating activities. Such an approach constitutes an attempt to assess to what extent the two analyzed groups (i.e. organic and conventional farms) can function on the market without public support. The analysis was conducted for two extreme periods, i.e. 2007-2009 and 2016--2018. The first one marks the moment of launching the first Rural Development Programme in Poland for a full seven-year implementation period. The year 2018 provides the latest data available. According to the results, organic farms have lower production potential than conventional farms and less favourable relationships between production factors. Yields and animal productivity are also lower. More importantly, they achieve much lower economic results, which are
The purpose of this study was to determine the relationship between plant protection and fertilizer use efficiency, on one side, and overinvestment in Polish agriculture, on the other. This is an important topic because of a number of essential issues, such as the concern for the environment, the development of sustainable agriculture, or the need to ensure food security which can only be achieved by keeping production volumes at least at the same level. Reconciling these goals often requires investment which, however, involves the risk of overinvesting, i.e., a situation where the value of assets grows without a proportional increment in labor productivity. This paper uses the author’s own method of farm classification by overinvestment level. The study revealed some differences in the cost intensity of fertilizing and using plant-protection products between investment levels. The most rational results were found in farms at optimum investment levels, whereas the greatest cost intensity was recorded in farms affected by overinvestment.
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