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Farm Productivity Depending on Economic Size

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  • Miroslaw Wasilewski

    ()
    (Warsaw University of Life Sciences)

  • Tomasz Felczak

    ()
    (Warsaw University of Life Sciences)

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    Abstract

    In the study, effectiveness of functioning of individual farms varying in terms of economic strength was measured using the residual income formula. The values used have been obtained from the European data collection system - Farm Accountancy Data Network for year 2011. The study encompassed farms in Poland, divided according to economic size. On the basis of the research conducted, it was found that the share of current assets and liabilities increased along with the economic strength of farms, which reflects the increasing production scale. As the standard value of production of a farm increased, so did the share of current assets. Increase in economic strength also resulted in an increase in the level of residual income, which indicates higher effectiveness of a farm. All of the groups of farms examined recorded a positive result of residual risk, which proves that agricultural activity of these farms is profitable.

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    Bibliographic Info

    Article provided by Institute of Accounting and Finance in its journal Accounting and Finance.

    Volume (Year): (2013)
    Issue (Month): 3 (September)
    Pages: 113-117

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    Handle: RePEc:iaf:journl:y:2013:i:3:p:113-117

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    Keywords: farm; economic strength; effectiveness; residual income;

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