SIGNIFICANCE OF PRODUCTION DIVERSIFICATION IN ENSURING FINANCIAL SECURITY OF FARMS IN POLAND

Agnieszka Kurdyś-Kujawska

Journal of Agribusiness and Rural Development, 2016, vol. 40, issue 2

Abstract: The purpose of the present study is to define, based on a theoretical identification, the significance of production diversification in ensuring financial security of agricultural farms and a presentation of the specificity of multi-directional farms in Poland. The entities included in the research were the ones conducting agricultural activity of a mixed type: mixed cropping and mixed crops-livestock in the years 2007-2013. The analysis was carried out based on data obtained from the statistical publications of the Central Statistical Office. On the basis of an analysis of the structure and dynamics. The size of utilised agriculturally area and their use, economicsize, the type and structure of plantation as well as the species and number of farm animals were all taken into consideration in the analysis. Based on the theoretical considerations presented it is evident that production diversification plays an important role in the reduction of the agricultural activity risk, and thus it contributes to maintaining stability and thereby preserving the financial security of farms. The results of empirical research prove that those farms that diversify their production are mainly farms of small economic size, producing for their own use. Diversification acts as a safety buffer in the case of these farms. It ensures self-sufficiency in terms of consumption and fodder production as well as small income. In the case of farms with bigger UAA it ensures proper functioning and survival on the market.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Farm Management; Financial Economics; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; Industrial Organization; Institutional and Behavioral Economics; International Development; International Relations/Trade; Labor and Human Capital; Land Economics/Use; Livestock Production/Industries; Marketing; Political Economy; Production Economics; Productivity Analysis; Public Economics; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods; Resource/Energy Economics and Policy; Risk and Uncertainty; Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pojard:253846

DOI: 10.22004/ag.econ.253846

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