Productivity of Production Factors in Polish Agriculture and in The Selected European Union Countries with Regard to The Common Agricultural Policy Payments

Anna Ściubeł

No 311275, Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Abstract: The aim of the paper is to analyze the productivity of production factors of Polish and selected EU farms from 2004 to 2017, taking into account the Common Agricultural Policy (CAP) payments, based on the literature. In the postaccession period, there was a marked increase in the efficiency of production factors on Polish farms. The average land, labor, and capital productivity indices from 2004 to 2017 were EUR 442.89/ha, EUR 4,774.35/AWU, and EUR 0.25/ EUR 1, respectively. In 2014, land productivity increased to EUR 1,591.3/ha and labor productivity to EUR 11,800/AWU, amounting to 68.8% and 28.6% of the EU-28 average, respectively, while capital productivity was higher (EUR 1.41/EUR 1) compared to the EU-28 average (EUR 1.29/EUR 1). The share of CAP payments in the income of the Polish farms in 2014 increased to 49.5%; however, this was still below the EU-28 average (61.1%). Regardless of the fact that the total factor productivity (TFP) remains lower in comparison to other EU countries, the increased efficiency of Polish farms in the post-accession period should be considered as significant.

Keywords: Agricultural and Food Policy; Productivity Analysis (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-agr, nep-eff and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iafepa:311275

DOI: 10.22004/ag.econ.311275

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