IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v68y2022i2id361-2021-agricecon.html
   My bibliography  Save this article

The income-assets relationship for farms operating under selected models in Poland

Author

Listed:
  • Aleksander Grzelak

    (Department of Macroeconomics and Agricultural Economics, Institute of Economics, Poznań University of Economics and Business, Poznań, Poland)

Abstract

The aim of this paper is to outline the relationship between income and assets when taking into account selected models of farms' functioning. The following farm models are examined: traditional, industrial, sustainable, and organic. Panel models were used that were based on the results of individual unpublished data for farms in Poland that undertook agricultural accounting according to the Farm Accounting Data Network (FADN) principles from 2004 to 2019. It was found that industrial farms had the clearest income-assets relationship, while traditional farms had the least clear relationship. The value of land, as a component of assets, was found to weaken the income-assets relationship. In consequence, the value of assets increased faster than income. Thus, the farmers are becoming wealthier in terms of the value of their assets, but this is not reflected in their income.

Suggested Citation

  • Aleksander Grzelak, 2022. "The income-assets relationship for farms operating under selected models in Poland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(2), pages 59-67.
    • Handle: RePEc:caa:jnlage:v:68:y:2022:i:2:id:361-2021-agricecon
    DOI: 10.17221/361/2021-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/361/2021-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/361/2021-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/361/2021-AGRICECON?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert M. Solow, 1955. "The Production function and the Theory of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(2), pages 101-108.
    2. Winters, Paul & Davis, Benjamin & Corral, Leonardo, 2002. "Assets, activities and income generation in rural Mexico: factoring in social and public capital," Agricultural Economics, Blackwell, vol. 27(2), pages 139-156, August.
    3. Daniele Valenti & Danilo Bertoni & Daniele Cavicchioli & Alessandro Olper, 2021. "The capitalization of CAP payments into land rental prices: a grouped fixed-effects estimator," Applied Economics Letters, Taylor & Francis Journals, vol. 28(3), pages 231-236, February.
    4. Rein Haagsma, 2005. "Endogenous norms and preferencesand the farm income problem," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(1), pages 25-49, March.
    5. Clement A. Tisdell, 2014. "Sustainable agriculture," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 32, pages 517-531, Edward Elgar Publishing.
    6. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    7. Haley, Stephen L., 1991. "Capital accumulation and the growth of aggregate agricultural production," Agricultural Economics, Blackwell, vol. 6(2), pages 129-157, December.
    8. J. Zwolak, 2008. "The impact of fixed assets on Polish agricultural production," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(1), pages 20-25.
    9. H. Frederick Gale, 1994. "Longitudinal Analysis of Farm Size over the Farmer's Life Cycle," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(1), pages 113-123.
    10. Nijhum, Farzana & Westbrook, Cherie & Noble, Bram & Belcher, Ken & Lloyd-Smith, Patrick, 2021. "Evaluation of alternative land-use scenarios using an ecosystem services-based strategic environmental assessment approach," Land Use Policy, Elsevier, vol. 108(C).
    11. Filip Hampl, 2020. "A statistical analysis of the financial performance of organic and conventional farms in the Czech Republic with respect to their size," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 1-9.
    12. Stephen L. Haley, 1991. "Capital accumulation and the growth of aggregate agricultural production," Agricultural Economics, International Association of Agricultural Economists, vol. 6(2), pages 129-157, December.
    13. Maurice J. Roche, 2004. "Riskier product portfolio under decoupled payments," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 111-123, June.
    14. Kehinde Oluseyi Olagunju & Myles Patton & Siyi Feng, 2020. "Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    15. Jensen, Farrell E. & Pope, Rulon D., 2004. "Agricultural Precautionary Wealth," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-14, April.
    16. Bazyli Czyżewski & Piotr Kułyk & Łukasz Kryszak, 2019. "Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 2080-2098, January.
    17. Hisham S. El‐Osta & Ashok K. Mishra & Mitchell J. Morehart, 2007. "Determinants of economic well‐being among U.S. farm operator households," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 291-304, May.
    18. Jason Hickel, 2019. "The contradiction of the sustainable development goals: Growth versus ecology on a finite planet," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(5), pages 873-884, September.
    19. Bonfiglio, Andrea & Arzeni, Andrea & Bodini, Antonella, 2017. "Assessing eco-efficiency of arable farms in rural areas," Agricultural Systems, Elsevier, vol. 151(C), pages 114-125.
    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. George Frisvold & Kevin Ingram, 1995. "Sources of agricultural productivity growth and stagnation in sub‐Saharan Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 51-61, October.
    2. Baoling Zou & Zanjie Ren & Ashok K. Mishra & Stefan Hirsch, 2022. "The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 923-945, October.
    3. Rocchi, B & Marino, M & Severini, S, 2018. "Does a farm household income problem still exist in the European Union?," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275653, Italian Association of Agricultural and Applied Economics (AIEAA).
    4. Sabrine Dhahri & Anis Omri, 2020. "Does foreign capital really matter for the host country agricultural production? Evidence from developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(1), pages 153-181, February.
    5. Jin, Wanfu & Zhou, Chunshan & Zhang, Guojun, 2020. "Characteristics of state-owned construction land supply in Chinese cities by development stage and industry," Land Use Policy, Elsevier, vol. 96(C).
    6. Gokhan Akay, 2009. "Trade, wages, and the specific factors model: empirical evidence from manufacturing industries in Ghana," Journal of Productivity Analysis, Springer, vol. 31(1), pages 47-55, February.
    7. Le, Kien, 2020. "Land use restrictions, misallocation in agriculture, and aggregate productivity in Vietnam," Journal of Development Economics, Elsevier, vol. 145(C).
    8. Khanal, Aditya R. & Mishra, Sachin K & Honey, Ummey, 2018. "Certified organic food production, financial performance, and farm size: An unconditional quantile regression approach," Land Use Policy, Elsevier, vol. 78(C), pages 367-376.
    9. Ben Abdallah, Skander & Lasserre, Pierre, 2016. "Asset retirement with infinitely repeated alternative replacements: Harvest age and species choice in forestry," Journal of Economic Dynamics and Control, Elsevier, vol. 70(C), pages 144-164.
    10. Oscar Gutiérrez & Francisco Ruiz-Aliseda, 2011. "Real options with unknown-date events," Annals of Finance, Springer, vol. 7(2), pages 171-198, May.
    11. Timothy Erickson & Toni M. Whited, 2000. "Measurement Error and the Relationship between Investment and q," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1027-1057, October.
    12. Arve, Malin & Zwart, Gijsbert, 2023. "Optimal procurement and investment in new technologies under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    13. Shively, Gerald E., 2001. "Price thresholds, price volatility, and the private costs of investment in a developing country grain market," Economic Modelling, Elsevier, vol. 18(3), pages 399-414, August.
    14. Marks, Phillipa & Marks, Brian, 2007. "Spectrum Allocation, Spectrum Commons and Public Goods: the Role of the Market," MPRA Paper 6785, University Library of Munich, Germany.
    15. Stern, Nicholas, 2018. "Public economics as if time matters: Climate change and the dynamics of policy," Journal of Public Economics, Elsevier, vol. 162(C), pages 4-17.
    16. Krause, M.U., 2002. "Inter-Industry Wage Differentials and Job Flows," Discussion Paper 2002-3, Tilburg University, Center for Economic Research.
    17. Wong, Kit Pong & Yi, Long, 2013. "Irreversibility, mean reversion, and investment timing," Economic Modelling, Elsevier, vol. 30(C), pages 770-775.
    18. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    19. Atal, Vidya & Bar, Talia & Gordon, Sidartha, 2016. "Project selection: Commitment and competition," Games and Economic Behavior, Elsevier, vol. 96(C), pages 30-48.
    20. Yonggu Kim & Keeyoung Shin & Joseph Ahn & Eul-Bum Lee, 2017. "Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement," Sustainability, MDPI, vol. 9(10), pages 1-16, October.

    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:caa:jnlage:v:68:y:2022:i:2:id:361-2021-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.