IDEAS home Printed from https://ideas.repec.org/a/ags/pojard/259679.html
   My bibliography  Save this article

The Significance Of Financing Farms With Personal Equity In The Opinion Of Individual Farmers In Poland

Author

Listed:
  • Magdalena Mądra-Sawicka,
  • Mirosław Wasilewski

Abstract

The aim of this research was to present the role and significance of financing with equity capital on individual farms in Poland. The research was carried out with the use of an interviewer questionnaire on a group of 100 farmers running individual farms as well as keeping the agricultural accounts in the FADN system. The research was conducted in the Mazowsze. Limitation of financing of the operational and investment activity only to the equity capital, in the opinion of farmers, contributes to less dynamic development of agricultural production due to a lack of sufficient equity resources for the purchase of machines and devices. The farmers included no requirements concerning warranties and guarantees in the situation of financing with a loan as the most significant advantages of financing with equity capital. Most farmers allocated the saved financial surplus to current or planned investments, assessing such financial strategy as the average level of risk. Such approach to self-financing of the activity was assessed by farmers as average in the context of the effectiveness of using equity capital.

Suggested Citation

  • Magdalena Mądra-Sawicka, & Mirosław Wasilewski, 2017. "The Significance Of Financing Farms With Personal Equity In The Opinion Of Individual Farmers In Poland," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 43(1), March.
    • Handle: RePEc:ags:pojard:259679
    DOI: 10.22004/ag.econ.259679
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/259679/files/12_1_2017.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.259679?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
    2. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    3. Charles Ou & George Haynes, 2006. "Acquisition of Additional Equity Capital by Small Firms – Findings from the National Survey of Small Business Finances," Small Business Economics, Springer, vol. 27(2), pages 157-168, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Danuta Zawadzka & Agnieszka Strzelecka & Ewa Szafraniec-Siluta, 2021. "Debt as a Source of Financial Energy of the Farm—What Causes the Use of External Capital in Financing Agricultural Activity? A Model Approach," Energies, MDPI, vol. 14(14), pages 1-17, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meilin Ma & Richard J. Sexton, 2021. "Modern agricultural value chains and the future of smallholder farming systems," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 591-606, July.
    2. Lili Li & Yiwu Zeng & Zi Ye & Hongdong Guo, 2021. "E‐commerce development and urban‐rural income gap: Evidence from Zhejiang Province, China," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 475-494, April.
    3. Geng, Jinqiang & Huo, Qingqing & Jia, Shanshan, 2023. "Parasitic Behavior and Separation Countermeasures in Large-scale Farming: Insights from Shijiazhuang, China," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(4), October.
    4. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    5. Meilin Ma & Jessie Lin & Richard J. Sexton, 2022. "The Transition from Small to Large Farms in Developing Economies: A Welfare Analysis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 111-133, January.
    6. J.P.B. Lillesø & C. Harwood & Abayneh Derero & L. Graudal & J. M. Roshetko & R. Kindt & S. Moestrup & W. O. Omondi & N. Holtne & A. Mbora & P. van Breugel & I. K. Dawson & R. Jamnadass & H. Egelyng, 2018. "Why institutional environments for agroforestry seed systems matter," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 89-112, March.
    7. Latynskiy, Evgeny & Berger, Thomas, 2016. "Networks of Rural Producer Organizations in Uganda: What Can be Done to Make Them Work Better?," World Development, Elsevier, vol. 78(C), pages 572-586.
    8. Biggeri, Mario & Carraro, Alessandro & Ciani, Federico & Romano, Donato, 2022. "Disentangling the impact of a multiple-component project on SDG dimensions: The case of durum wheat value chain development in Oromia (Ethiopia)," World Development, Elsevier, vol. 153(C).
    9. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    10. Xianqing Ji & Scott Rozelle & Jikun Huang & Linxiu Zhang & Tonglong Zhang, 2016. "Are China's Farms Growing?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(1), pages 41-62, January.
    11. Zeng, Yiwu & Jia, Fu & Wan, Li & Guo, Hongdong, 2017. "E-commerce in agri-food sector: a systematic literature review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), February.
    12. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    13. Fischer, Klara, 2016. "Why new crop technology is not scale-neutral—A critique of the expectations for a crop-based African Green Revolution," Research Policy, Elsevier, vol. 45(6), pages 1185-1194.
    14. Silvia Ștefania Maican & Andreea Cipriana Muntean & Carmen Adina Paștiu & Sebastian Stępień & Jan Polcyn & Iulian Bogdan Dobra & Mălina Dârja & Claudia Olimpia Moisă, 2021. "Motivational Factors, Job Satisfaction, and Economic Performance in Romanian Small Farms," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    15. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.
    16. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 56-86.
    17. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    18. Fredrick Bagamba & Proscovia R. Ntakyo & Geoffrey Otim & David J. Spielman & Bjorn Van Campenhout, 2023. "Policy and performance in Uganda's seed sector: Opportunities and challenges," Development Policy Review, Overseas Development Institute, vol. 41(3), May.
    19. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    20. Dorosh, Paul A. & Thurlow, James, 2014. "Beyond agriculture versus nonagriculture: Decomposing sectoral growth–poverty linkages in five African countries:," IFPRI discussion papers 1391, International Food Policy Research Institute (IFPRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pojard:259679. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.jard.edu.pl/en/main .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.