THE ROLE OF SUCCESSOR IN CAPITAL ACCUMULATION IN POLISH FAMILY FARMS

The aim of this work was to study the behaviour of farmers both with and without successors, within the scope of achieving economic profits and investment implementation. It was acknowledged that these two elements are the markers of capital accumulation in family farms. The research was conducted between the years 2004-2011 on a group of farmers aged over 50. Logit models showed that having a successor did not prejudge the ability to make an economic profit, but did however influence the farms’ investment level

Ujemny kapitał własny w przedsiębiorstwie a kontynuacja działalności

The paper analyzes the financial situation of enterprises, which had negative equity in the period 2012–2015 in the context of their continued activity. Profitability and debt ratios and repayment periods indicated a very unfavorable financial situation. According to the legal provisions, these companies should be bankrupt (liquidated) but they still function, unfortunately, increasing the shortage of equity by systematic debt, which puts creditors in a very difficult situation.W artykule przeprowadzono analizę sytuacji finansowej przedsiębiorstw, które charakteryzowały się ujemnym kapitałem własnym w okresie 2012–2015 w kontekście kontynuowania przez nie działalności. Wskaźniki rentowności i zadłużenia oraz okres spłaty długów wskazywały na bardzo niekorzystną sytuację finansową. Zgodnie z zapisami prawnymi przedsiębiorstwa te powinny być postawione w stan upadłości (likwidacji), ale nadal funkcjonują, niestety powiększając niedobory kapitału własnego przez systematyczne zadłużanie się, co stawia wierzycieli w bardzo trudnej sytuacji

Zarządzanie oparte na wartości - filozofia i wyzwanie w zarządzaniu finansami współczesnego przedsiębiorstwa

Prowadzenie działalności gospodarczej wymaga uprzedniego zdefiniowania celu działania przedsiębiorstwa oraz określenia środków którymi ten cel (te cele) będą osiągane. Odzwierciedleniem filozofii działania przedsiębiorstwa są zatem misja i wizja zdefiniowane w postaci celów strategicznych oraz celów operacyjnych umożliwiających realizację długoterminowych planów i zamierzeń . Sama strategia z kolei jest wyrazem przyjętej koncepcji biznesu oraz określonych sposobów umożliwiających przedsiębiorstwu zachowanie korzystnej stabilności względem otoczenia . Celem artykułu jest prezentacja różnych koncepcji zarządzania wartością w kontekście traktowania ich jako istoty funkcjonowania przedsiębiorstwa. Praca ma charakter przeglądowy, a przy realizacji celu posłużono się analizą opisową

Do farm subsidies improve labour efficiency in farms in EU countries?

PURPOSE: Agricultural support programmes most commonly aim at attaining higher production of raw food materials or supporting processes resulting in agricultural yield. One of the most important challenges is to increase labour productivity, thanks to which working in the agricultural sector may be attractive in comparison with working in the nonagricultural sector. In literature, in the scope of agricultural economy, there is a lack of consistent results concerning the relation between the level of subsidies for operational activity and labour productivity in agriculture. The question arises whether or not subsidies for agriculture help achieve the intended results in the form of an increase in labour productivity. This reasoning gave rise to this study, which aimed at indicating the directions and strength of association between subsidies for operational activity on farms expressed per one employed and the attained labour productivity.DESIGN/METHODOLOGY/APPROACH: The study was carried out for EU countries divided into quartile groups defined according to labour productivity. Data from the Farm Accountancy Data Network for the period 2013-2018 were applied, and for analysis the panel regression method (with random effects) was used.FINDINGS: It was found that together with an increase in labour productivity, the direction and the strength of impact of direct subsidies also altered. On farms of countries with a lower labour productivity, no significant relation was found. However, for the quantile groups Q2 and Q3, an increase in the level of labour productivity resulted in a positive, yet decreasing impact of subsidies. On farms of countries with the lowest labour productivity, a negative impact of subsidies was observed.PRACTICAL IMPLICATIONS: The conducted analysis gives reason to state that farms that have attained a high level of development, subsidies do not lead to a further growth of productivity, but only support the maintenance of the same level of farm income.ORIGINALITY/VALUE: The assessment of whether and under what conditions the subsidies bring the intended effects allows for a change in the directions of support in order to obtain better effects from spending public funds. The research was conducted for a long period of time for a group of all EU countries.peer-reviewe

SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS

Ensuring business continuity requires maintaining financial liquidity and a certain level of cashholdings. This also applies to farms whose owners obtain funds from various sources, includingforeign capital. For this reason, the study aimed to identify sources and determine cash resourcesin farms in Central and Eastern European countries that are in the EU. Additionally, based ondetailed data from Polish farms, we assessed and compared the importance of cash holdings infarms characterised by a high level of financial security and those for which we identify thebankruptcy risk. Data for the research is from the Farm Accounting Data Network (FADN) databasefor 2013-2018 (for all the EU countries we consider). In the analysis touching upon bankruptcy riskin Polish farms, we used data from FADN-PL for 2010-2018. In the study, we used the panel method– weighted least squares method (WLS). We applied the dynamic approach to calculate the cashholdings. Inferences from our study indicate that budget support for farmers and sales value perfarm are the main sources and determinants of cash holdings in farms in New Member State of theEU. It should be underlined that the influence of budget support on cash holdings in Polish farmswas weaker than in other surveyed countries. Moreover, it was found that the level of indebtednesswas also an important factor that impacted cash holdings. On Polish farms, the impact of the debtlevel on cash holdings was negative, and in other countries – positive.The added value of work is identifying factors that affect cash holdings changes, so it is a dynamicapproach to cash holdings

FINANCIAL SECURITY OF FARMS IN SELECTED European Union COUNTRIES IN THE CONTEXT OF ENVIRONMENTAL PROTECTION REQUIREMENTS

The article deals with the issue of financial security in an average farm in the Czech Republic, Poland, the Netherlands and Germany. The data collected under the FADN in the period 2013-2017 was used in this work. Financial security was measured using a cash adequacy indicator and the variability of family farm income is used. The work also used the subsidy rate, which determined to what degree farmers could feel safe in financial terms without any subsidies or financial support. Research shows that the worst situation from the perspective of the relationship between cash flows and debt servicing occurred on an average Dutch farm, and the highest sufficiency index was shown by a Polish farm. However, these discrepancies are the result of risk aversion in recent uncertain financial times. If additional requirements for outlays related to environmental protection appear, then the most difficult situation will occur on farms in the Czech Republic and Poland due to the fact that, for them, direct payments constitute a significant source of income. In these countries, a lack of compensation for any possible consequences arising from environmental restrictions may cause a feeling of financial insecurit

Capital concentration versus financial efficiency of family farms

The paper presents research findings concerning financial efficiency in the context of capital concentration in the economy. The research was based on farm data collecting information on accounting for 2004-2011. The research shows that returns, obtained by farms more intensively gathering capital, are below the weighted average cost of capital

Konwergencja efektywności ekonomicznej w gospodarstwach rolnych Wielkopolski

The increase in farming efficiency is a condition for the survival of farms in the conditions of continuous technical progress and changes in the agricultural environment. Farms of smaller economic size faced the greatest challenges due to their lower potential for modernization. To meet the environment’s requirements regarding the production size, their growth dynamics should be higher than in other size classes. The work aims to determine changes in the efficiency of production factors on farms according to their economic size and to determine whether there is convergence of the efficiency of production factors on farms of different economic sizes. The research covered farms from Wielkopolska Voivodeship for the years 2010–2020. During the study period, the productivity and efficiency of factors in real terms deteriorated in farms of all size classes except the largest. There was no convergence in terms of the efficiency indicators examined, and in the case of capital efficiency, a divergence was observed, i.e. an increase in the difference between smaller and larger farms. Findings from the research provide grounds for the statement that development opportunities in Wielkopolska Voivodeship are currently observed for farms with an area of 30 ha and more, the number and importance of which is growing. The number of farms with an area of 1–20 ha is decreasing. A dichotomous development of farms is visible; more and more smaller farms will only perform auxiliary or residential functions.Wzrost efektywności gospodarowania jest warunkiem przetrwania gospodarstw rolnych w warunkach ciągłego postępu technicznego i zmian w otoczeniu rolnictwa. Największe wyzwania stoją przed gospodarstwami o mniejszej wielkości ekonomicznej ze względu na ich mniejszy potencjał do modernizacji. Aby sprostać wymaganiom otoczenia co do rozmiaru produkcji, dynamika ich wzrostu powinna być wyższa niż w pozostałych klasach. Celem pracy jest określenie zmian efektywności czynników produkcji w gospodarstwach według ich wielkości ekonomicznej oraz ustalenie, czy występuje konwergencja efektywności czynników produkcji w gospodarstwach o różnej wielkości ekonomicznej. Badaniami objęto gospodarstwa z województwa wielkopolskiego za lata 2010–2020. W badanym okresie produkcyjność i wydajność czynników w ujęciu realnym pogarszała się w gospodarstwach każdej klasy wielkości oprócz największych. Nie występowała konwergencja w zakresie badanych wskaźników efektywności, a w przypadku wydajności kapitału obserwowano zwiększanie różnicy między mniejszymi i większymi gospodarstwami. Ustalenia z badań dają podstawę do twierdzenia, że szanse rozwoju w warunkach województwa wielkopolskiego obserwuje się obecnie dla gospodarstw o powierzchni 30 ha i większej, których liczba i znaczenie rosną. Ubywa gospodarstw o powierzchni 1–20 ha. Widoczny jest dychotomiczny rozwój gospodarstw, coraz więcej gospodarstw mniejszych będzie więc pełniło tylko funkcje pomocnicze lub rezydencjonalne

Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland

This paper proposes a methodology for calculating the cost of equity for unlisted agricultural companies in Poland. An analysis of a fixed effects panel model was conducted on a sample of 79 agricultural enterprises from the Farm Accountancy Data Network (FADN) field of observation in 2012–2015. The empirical model includes a value of land, agricultural area, depreciation, sale earnings, and payables. The study confirmed that in the valuation of the cost of equity capital in agricultural enterprises, factors that are specific to this sector must be taken into account. As the basic source of production is agricultural land, it must be taken into consideration while estimating the cost of equity capital. This factor was included in the theoretical model