IDEAS home Printed from https://ideas.repec.org/a/ags/polpwa/329709.html
   My bibliography  Save this article

Influence of Changes in the Prices of Fertilizers and Fuels on the Profitability of Production of Selected Agricultural Crops

Author

Listed:
  • Weremczuk, Arkadiusz
  • Malitka, Grzegorz

Abstract

The prices of raw materials necessary for production play an important role in the production decisions of farmers, and thus in shaping the level of supply of agricultural raw materials. The constant increase in the prices of raw materials for production increases its costs. Therefore, it should be noted that the rising prices of fuel and fertilizers affect the decisions and profitability of plant production. In connection with the above, this study attempts to indicate the impact of changes in fertilizer and fuel prices on the profitability of production of selected agricultural crops in Poland. The paper uses secondary data on the price level of fertilizers, fuels and selected agricultural products, as well as the structure of their production costs. Based on the sensitivity analysis, the potential impact of the increase in fuel and fertilizer prices on the profitability of the production of selected species was indicated. The results showed that the increase in the prices of the above-mentioned raw materials can significantly affect the economic efficiency of the production activity.

Suggested Citation

  • Weremczuk, Arkadiusz & Malitka, Grzegorz, 2022. "Influence of Changes in the Prices of Fertilizers and Fuels on the Profitability of Production of Selected Agricultural Crops," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 22(3), September.
    • Handle: RePEc:ags:polpwa:329709
    DOI: 10.22004/ag.econ.329709
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/329709/files/4_art_Weremczuk_Malitka.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.329709?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. Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economic Reports 34081, United States Department of Agriculture, Economic Research Service.
    2. Dawson, C.J. & Hilton, J., 2011. "Fertiliser availability in a resource-limited world: Production and recycling of nitrogen and phosphorus," Food Policy, Elsevier, vol. 36(Supplemen), pages 14-22, January.
    3. El Benni, Nadja & Finger, Robert, 2014. "Where is the risk? Price, yield and cost risk in Swiss crop production," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    4. Zhang, Zibin & Lohr, Luanne & Escalante, Cesar & Wetzstein, Michael, 2010. "Food versus fuel: What do prices tell us?," Energy Policy, Elsevier, vol. 38(1), pages 445-451, January.
    5. Chang, Ting-Huan & Su, Hsin-Mei, 2010. "The substitutive effect of biofuels on fossil fuels in the lower and higher crude oil price periods," Energy, Elsevier, vol. 35(7), pages 2807-2813.
    6. Asgharipour, Mohammad Reza & Mondani, Farzad & Riahinia, Shahram, 2012. "Energy use efficiency and economic analysis of sugar beet production system in Iran: A case study in Khorasan Razavi province," Energy, Elsevier, vol. 44(1), pages 1078-1084.
    7. Dawson, C.J. & Hilton, J., 2011. "Fertiliser availability in a resource-limited world: Production and recycling of nitrogen and phosphorus," Food Policy, Elsevier, vol. 36(S1), pages 14-22.
    8. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
    9. Sobczak, Wioleta & Sobczak, Anna, 2021. "Profitability Of Red Sweet Pepper (Capsicum Annuum L.) Production In Field Cultivation," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(3).
    10. Nigatu, Getachew & Badau, Flavius & Seeley, Ralph & Hansen, James, 2020. "Factors Contributing to Changes in Agricultural Commodity Prices and Trade for the United States and the World," Economic Research Report 301181, United States Department of Agriculture, Economic Research Service.
    11. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Yoshino, Naoyuki, 2019. "Energy and Food Security: Linkages through Price Volatility," Energy Policy, Elsevier, vol. 128(C), pages 796-806.
    Full references (including those not matched with items on IDEAS)

    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. Mensi, Walid & Hammoudeh, Shawkat & Nguyen, Duc Khuong & Yoon, Seong-Min, 2014. "Dynamic spillovers among major energy and cereal commodity prices," Energy Economics, Elsevier, vol. 43(C), pages 225-243.
    2. Nazlioglu, Saban & Erdem, Cumhur & Soytas, Ugur, 2013. "Volatility spillover between oil and agricultural commodity markets," Energy Economics, Elsevier, vol. 36(C), pages 658-665.
    3. Zhengyi Dong, 2019. "Does the Development of Bioenergy Exacerbate the Price Increase of Maize?," Sustainability, MDPI, vol. 11(18), pages 1-16, September.
    4. Khaled Mokni & Manel Youssef, 2020. "Empirical analysis of the cross‐interdependence between crude oil and agricultural commodity markets," Review of Financial Economics, John Wiley & Sons, vol. 38(4), pages 635-654, October.
    5. Aleksandra Dimitrijević & Marija Gavrilović & Sanjin Ivanović & Zoran Mileusnić & Rajko Miodragović & Saša Todorović, 2020. "Energy Use and Economic Analysis of Fertilizer Use in Wheat and Sugar Beet Production in Serbia," Energies, MDPI, vol. 13(9), pages 1-12, May.
    6. Hanif, Waqas & Areola Hernandez, Jose & Shahzad, Syed Jawad Hussain & Yoon, Seong-Min, 2021. "Tail dependence risk and spillovers between oil and food prices," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 195-209.
    7. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Yoshino, Naoyuki, 2018. "Volatility Linkages between Energy and Food Prices: Case of Selected Asian Countries," ADBI Working Papers 829, Asian Development Bank Institute.
    8. Monika Roman & Aleksandra Górecka & Joanna Domagała, 2020. "The Linkages between Crude Oil and Food Prices," Energies, MDPI, vol. 13(24), pages 1-18, December.
    9. Shokoohi, Zeinab & Saghaian, Sayed, 2022. "Nexus of energy and food nutrition prices in oil importing and exporting countries: A panel VAR model," Energy, Elsevier, vol. 255(C).
    10. Serra, Teresa & Zilberman, David, 2013. "Biofuel-related price transmission literature: A review," Energy Economics, Elsevier, vol. 37(C), pages 141-151.
    11. Wang, Yudong & Wu, Chongfeng & Yang, Li, 2014. "Oil price shocks and agricultural commodity prices," Energy Economics, Elsevier, vol. 44(C), pages 22-35.
    12. Mustafa Gülerce & Gazanfer Ünal, 2017. "Forecasting Of Oil And Agricultural Commodity Prices: Varma Versus Arma," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 1-30, September.
    13. Debdatta Pal & Subrata K. Mitra, 2017. "Diesel and soybean price relationship in the USA: evidence from a quantile autoregressive distributed lag model," Empirical Economics, Springer, vol. 52(4), pages 1609-1626, June.
    14. Agus Widarjono & Indah Susantun & Sarastri M. Ruchba & Ari Rudatin, 2020. "Oil and Food Prices for a Net Oil Importing-country: How Are Related in Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 255-263.
    15. Navid Kargar Dehbidi & Mansour Zibaei & Mohammad Hassan Tarazkar, 2022. "The effect of climate change and energy shocks on food security in Iran's provinces," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 417-437, April.
    16. Bastianin, Andrea & Galeotti, Marzio & Manera, Matteo, 2014. "Causality and predictability in distribution: The ethanol–food price relation revisited," Energy Economics, Elsevier, vol. 42(C), pages 152-160.
    17. Dániel Fróna & János Szenderák & Mónika Harangi-Rákos, 2019. "The Challenge of Feeding the World," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    18. Gbadebo Oladosu & Siwa Msangi, 2013. "Biofuel-Food Market Interactions: A Review of Modeling Approaches and Findings," Agriculture, MDPI, vol. 3(1), pages 1-19, February.
    19. Meyer-Aurich, Andreas & Karatay, Yusuf Nadi, 2019. "Effects of uncertainty and farmers' risk aversion on optimal N fertilizer supply in wheat production in Germany," Agricultural Systems, Elsevier, vol. 173(C), pages 130-139.
    20. Michael Barrowclough & L. Geyer, 2015. "Biofuel Policies: The Underground Limitation on Biofuels," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 55-65, March.

    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:polpwa:329709. 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: https://edirc.repec.org/data/wesggpl.html .

    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.