IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2025i12p1314-d1682573.html
   My bibliography  Save this article

Remuneration for Own Labour in Family-Run Dairy Farms Versus the Salaries and Wages in Non-Agricultural Sectors of the Economy—Evaluation of the Situation in Poland in 2005–2022

Author

Listed:
  • Andrzej Parzonko

    (Department of Economics and Organization of Enterprises, Institute of Economics and Finance, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland)

  • Tomasz Wojewodzic

    (Department of Economics and Food Economy, Faculty of Agriculture and Economics, University of Agriculture in Krakow, al. Mickiewicza 21, 31-120 Krakow, Poland)

  • Marta Czekaj

    (Department of Management and Economics of Enterprises, Faculty of Agriculture and Economics, University of Agriculture in Krakow, al. Mickiewicza 21, 31-120 Krakow, Poland)

  • Renata Płonka

    (Department of Agricultural Holdings Accountancy, Institute of Agricultural and Food Economics—National Research Institute, ul. Świętokrzyska 20, 00-002 Warszawa, Poland)

  • Anna Justyna Parzonko

    (Department of Tourism, Social Communication and Consulting, Institute of Economics and Finance, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland)

Abstract

Income level is a key indicator of the standard of living and the economic efficiency of undertaken activities. This paper aims to evaluate the earnings of Polish dairy farmers compared to those in other economic sectors between 2005 and 2022. The analysis covered 1688 family-run farms that participated continuously in the FADN system throughout the study period, with particular emphasis on farms that expanded their dairy cow herds. The remuneration for the labour of farmers and their families was estimated ex post by subtracting the opportunity costs of owned land and capital from farm income. The alternative cost of engaging one’s own land was determined on the basis of actual rental prices for farmland occurring in the surveyed farm groups in the years analysed. This information is collected in the FADN system from which the studied group of farms was drawn. The basis for determining the alternative cost of involvement of own capital was the average interest rates on deposits for households, concluded for a period of 6 months to 1 year inclusive, reported by the National Bank of Poland. The analysed population was divided into seven groups based on the number of dairy cows maintained. The analysis focused on two three-year reference periods: 2005–2007 and 2020–2022. The results were compared with average salaries and wages in non-agricultural sectors of the economy. Structural changes in agriculture, increased productivity, and the expansion of production scale in dairy farms indicate a growing professionalisation of the sector. The rise in farm incomes during the analysed period contributed to a significant increase in the remuneration for farmers’ and their families’ labour. The highest growth in remuneration was observed among farms with the greatest production potential and scale. While in 2005–2007 the remuneration for labour in dairy farms was lower than in non-agricultural sectors, this situation changed in 2020–2022. During this latter period, the average remuneration for labour on dairy farms slightly exceeded the average salary and wages in other sectors of the economy.

Suggested Citation

  • Andrzej Parzonko & Tomasz Wojewodzic & Marta Czekaj & Renata Płonka & Anna Justyna Parzonko, 2025. "Remuneration for Own Labour in Family-Run Dairy Farms Versus the Salaries and Wages in Non-Agricultural Sectors of the Economy—Evaluation of the Situation in Poland in 2005–2022," Agriculture, MDPI, vol. 15(12), pages 1-15, June.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:12:p:1314-:d:1682573
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/12/1314/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/12/1314/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Czyżewski Andrzej & Staniszewski Jakub, 2015. "Contemporary agrarian question and alternative ways to its solution," Management, Sciendo, vol. 19(1), pages 98-112, May.
    2. Rodica Chetroiu & Ana Elena Cișmileanu & Elena Cofas & Ionut Laurentiu Petre & Steliana Rodino & Vili Dragomir & Ancuța Marin & Petruța Antoneta Turek-Rahoveanu, 2022. "Assessment of the Relations for Determining the Profitability of Dairy Farms, A Premise of Their Economic Sustainability," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    3. Bożena Kusz & Dariusz Kusz & Iwona Bąk & Maciej Oesterreich & Ludwik Wicki & Grzegorz Zimon, 2022. "Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    4. Ivana Kravčáková Vozárová & Rastislav Kotulič, 2025. "Exploring the Role of EU Subsidies in Enhancing the Competitiveness of Slovak Farms," Agriculture, MDPI, vol. 15(7), pages 1-15, March.
    5. Renata Matysik-Pejas & Małgorzata Bogusz & Kamila Daniek & Monika Szafrańska & Łukasz Satoła & Andrzej Krasnodębski & Paweł Dziekański, 2023. "An Assessment of the Spatial Diversification of Agriculture in the Conditions of the Circular Economy in European Union Countries," Agriculture, MDPI, vol. 13(12), pages 1-22, December.
    6. Rūta Savickienė & Aistė Galnaitytė, 2024. "Unveiling Determinants of Successful Dairy Farm Performance from Dairy Exporting EU Countries," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    7. Piotr Bórawski & Marta Guth & Aneta Bełdycka-Bórawska & Krzysztof Józef Jankowski & Andrzej Parzonko & James W. Dunn, 2020. "Investments in Polish Agriculture: How Production Factors Shape Conditions for Environmental Protection?," Sustainability, MDPI, vol. 12(19), pages 1-26, October.
    8. V. Demircan & T. Binici & H. Koknaroglu & A.R. Aktas, 2006. "Economic analysis of different dairy farm sizes in Burdur province inTurkey," Czech Journal of Animal Science, Czech Academy of Agricultural Sciences, vol. 51(1), pages 8-17.
    9. Ryszard Kata & Małgorzata Wosiek, 2024. "Income Variability of Agricultural Households in Poland: A Descriptive Study," Agriculture, MDPI, vol. 14(3), pages 1-17, February.
    10. Andrzej Hornowski & Andrzej Parzonko & Pavel Kotyza & Tomasz Kondraszuk & Piotr Bórawski & Luboš Smutka, 2020. "Factors Determining the Development of Small Farms in Central and Eastern Poland," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    11. Jérôme Adda & Christian Dustmann, 2023. "Sources of Wage Growth," Journal of Political Economy, University of Chicago Press, vol. 131(2), pages 456-503.
    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. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.
    2. Emilia Herman, 2025. "Changes and Challenges in EU Agricultural Holdings and Their Impact on Rural Development," Land, MDPI, vol. 14(5), pages 1-37, May.
    3. Albanese, Andrea & Cockx, Bart & Dejemeppe, Muriel, 2024. "Long-term effects of hiring subsidies for low-educated unemployed youths," Journal of Public Economics, Elsevier, vol. 235(C).
    4. Arellano-Bover, Jaime & Saltiel, Fernando, 2021. "Differences in On-the-Job Learning across Firms," IZA Discussion Papers 14473, Institute of Labor Economics (IZA).
    5. Kusz, Dariusz, 2023. "Motives and Barriers to Innovations and Implementation in Cattle Farms," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).
    6. Cristina Pavanello & Marcello Franchini & Stefano Bovolenta & Elisa Marraccini & Mirco Corazzin, 2024. "Sustainability Indicators for Dairy Cattle Farms in European Union Countries: A Systematic Literature Review," Sustainability, MDPI, vol. 16(10), pages 1-25, May.
    7. Wawrzyniec Czubak & Krzysztof Piotr Pawłowski, 2024. "The Impact of Agricultural Investments on the Economic Efficiency of Production Factors: An Empirical Study of the Wielkopolska Voivodeship," Agriculture, MDPI, vol. 14(12), pages 1-16, December.
    8. Corekcioglu, Gozde & Francesconi, Marco & Kunze, Astrid, 2024. "Expansions in paid parental leave and mothers’ economic progress," European Economic Review, Elsevier, vol. 169(C).
    9. M.M. Artukoglu & A. Olgun, 2008. "Cooperation tendencies and alternative milk marketing channels of dairy producers in Turkey: A case of Menemen," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(1), pages 32-37.
    10. Ewa Mackiewicz-Walec & Sławomir Józef Krzebietke & Stanisław Sienkiewicz, 2022. "The Influence of Crops on the Content of Polycyclic Aromatic Hydrocarbons in Soil Fertilized with Manure and Mineral Fertilizers," IJERPH, MDPI, vol. 19(20), pages 1-14, October.
    11. Tingting Huang & Jiangfeng Hu & Qinghua Huang, 2023. "Sustainable Development between Demonstration Farm and Agricultural Labor Productivity: Evidence from Family Farms in the Mountainous Area of Western China," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
    12. Agnieszka Kurdyś-Kujawska & Agnieszka Strzelecka & Danuta Zawadzka, 2021. "The Impact of Crop Diversification on the Economic Efficiency of Small Farms in Poland," Agriculture, MDPI, vol. 11(3), pages 1-21, March.
    13. Burdin, Gabriel & Garcia-Louzao, Jose, 2025. "Employee-owned firms and the careers of young workers," Labour Economics, Elsevier, vol. 93(C).
    14. Erica Delugas & Francesco Giffoni & Emanuela Sirtori & Johannes Gutleber, 2025. "The Human Capital Accumulation at Research Infrastructures: Reexamining Wage Returns to Training, Models, Interpretation, and Magnitude," Papers 2502.07419, arXiv.org.
    15. Ioan Prigoreanu & Gabriela Radu & Andreea Grigore-Sava & Carmen Luiza Costuleanu & George Ungureanu & Gabriela Ignat, 2025. "Assessing the Economic Sustainability of the EU and Romanian Farming Sectors," Sustainability, MDPI, vol. 17(10), pages 1-33, May.
    16. Parzonko, Andrzej & Bórawski, Piotr, 2021. "Competitive Position of Polish Dairy Farms on the EU Market in 2005-2018," Monographs: Applied Economics, AgEcon Search, number 317788, December.
    17. Si, Ruishi & Lu, Qian & Aziz, Noshaba, 2021. "Does the stability of farmland rental contract & conservation tillage adoption improve family welfare? Empirical insights from Zhangye, China," Land Use Policy, Elsevier, vol. 107(C).
    18. Oana Coca & Diana Creangă & Ștefan Viziteu & Ioan Sebastian Brumă & Gavril Ștefan, 2023. "Analysis of the Determinants of Agriculture Performance at the European Union Level," Agriculture, MDPI, vol. 13(3), pages 1-23, March.
    19. Andrzej Parzonko, 2023. "Rentowność kapitału własnego w polskich gospodarstwach mlecznych zróżnicowanych skalą produkcji w latach 2005-2020," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(3).
    20. Moritz Mendel, 2024. "Nonstandard Educational Careers and Inequality," CRC TR 224 Discussion Paper Series crctr224_2024_592, University of Bonn and University of Mannheim, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jagris:v:15:y:2025:i:12:p:1314-:d:1682573. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.