FARM INCOME SITUATION ACCORDING TO THE ECONOMIC SIZE

Abstract

The economic situation of farms has been analyzed according to the economic size. On the basis of data from FADN Farm Accountancy Data Network there has been made an analysis of the income situation of an average Polish and European Union farm. For the need of the analysis, the farms have been divided into 6 classes of economic size (ES6): to 4, 4–8, 8–16, 16–40, 40–100, 100 – and more ESU (European Size Unit). Due to the fact that FADN Standard Results include mean values for identified groups with definite minimal number of agricultural farms, simple methods of analysis of statistical series as well as vertical and horizontal analysis method have been applied. In the work, information from all the farms which used FADN accountancy in the years 2004–2008 has been provided, and for the Polish farms, additionally from the years 2005–2007. The quantity of the earned income was closely correlated with the farm economic size. Along with its rise, the level of earned income increased, as well. However, Farm Net Income exceeding the average net wage1 in the national economy, in 2004, was reached by Polish farms only of medium small (8–16 ESU) economic size, whereas, in 2008 by a medium large one (16–40 ESU). In large farms (40–100 ESU) and very large (100 ESU and more) in 2008, and additionally, medium large (16–40 ESU), in 2004, the earned income of unpaid labor per head was many times higher than the average net wage. The contribution of subsidies to the size of earned income is constantly growing.