Remuneration for Own Labour in Family-Run Dairy Farms Versus the Salaries and Wages in Non-Agricultural Sectors of the Economy—Evaluation of the Situation in Poland in 2005–2022

Andrzej Parzonko, Tomasz Wojewodzic, Marta Czekaj (), Renata Płonka and Anna Justyna Parzonko
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Andrzej Parzonko: Department of Economics and Organization of Enterprises, Institute of Economics and Finance, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland
Tomasz Wojewodzic: Department of Economics and Food Economy, Faculty of Agriculture and Economics, University of Agriculture in Krakow, al. Mickiewicza 21, 31-120 Krakow, Poland
Marta Czekaj: Department of Management and Economics of Enterprises, Faculty of Agriculture and Economics, University of Agriculture in Krakow, al. Mickiewicza 21, 31-120 Krakow, Poland
Renata Płonka: Department of Agricultural Holdings Accountancy, Institute of Agricultural and Food Economics—National Research Institute, ul. Świętokrzyska 20, 00-002 Warszawa, Poland
Anna Justyna Parzonko: Department of Tourism, Social Communication and Consulting, Institute of Economics and Finance, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland

Agriculture, 2025, vol. 15, issue 12, 1-15

Abstract: Income level is a key indicator of the standard of living and the economic efficiency of undertaken activities. This paper aims to evaluate the earnings of Polish dairy farmers compared to those in other economic sectors between 2005 and 2022. The analysis covered 1688 family-run farms that participated continuously in the FADN system throughout the study period, with particular emphasis on farms that expanded their dairy cow herds. The remuneration for the labour of farmers and their families was estimated ex post by subtracting the opportunity costs of owned land and capital from farm income. The alternative cost of engaging one’s own land was determined on the basis of actual rental prices for farmland occurring in the surveyed farm groups in the years analysed. This information is collected in the FADN system from which the studied group of farms was drawn. The basis for determining the alternative cost of involvement of own capital was the average interest rates on deposits for households, concluded for a period of 6 months to 1 year inclusive, reported by the National Bank of Poland. The analysed population was divided into seven groups based on the number of dairy cows maintained. The analysis focused on two three-year reference periods: 2005–2007 and 2020–2022. The results were compared with average salaries and wages in non-agricultural sectors of the economy. Structural changes in agriculture, increased productivity, and the expansion of production scale in dairy farms indicate a growing professionalisation of the sector. The rise in farm incomes during the analysed period contributed to a significant increase in the remuneration for farmers’ and their families’ labour. The highest growth in remuneration was observed among farms with the greatest production potential and scale. While in 2005–2007 the remuneration for labour in dairy farms was lower than in non-agricultural sectors, this situation changed in 2020–2022. During this latter period, the average remuneration for labour on dairy farms slightly exceeded the average salary and wages in other sectors of the economy.

Keywords: milk production; commercial farm; income from a family-run farm; remuneration for own labour; work productivity; Poland; FADN (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2025
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