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Exploring the Flexibility of Polish Family Farms during Transition

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  • Pieniądz, Agata
  • Renner, Swetlana
  • Goraj, Lech

Abstract

Based on farm panel data we empirically investigate the determinants of Polish farm households' flexibility from 1994 to 2001. we focus on scale flexibility (adjustment in production volume) and scope flexibility (adjustment in product mix). The findings of our fixed-effects regression provide evidence that smaller farms are more flexible, both with regard to scale and scope of production. Farms with a higher share of variable costs tended to be more flexible, while producers who specialized in capital- intensive technologies turned out to be less flexible. Some results differ significantly from the prevailing expectations, in particular we found that farms where a generational succession took place displayed less flexibility over time. Moreover, access to off-farm income and finances have opposite effects on scale and scope flexibility. An explanation for these outcomes may be the varying term structure of liquidity sources. There are relevant differences in the strategies Polish farmers used to adjust to changing environmental conditions during transition, which should be taken into account in the design of supporting policies.

Suggested Citation

  • Pieniądz, Agata & Renner, Swetlana & Goraj, Lech, 2010. "Exploring the Flexibility of Polish Family Farms during Transition," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 205133, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:205133
    DOI: 10.22004/ag.econ.205133
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    1. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2005. "Technical and scale efficiency of crop and livestock farms in Poland : does specialization matte r?," Post-Print hal-02392195, HAL.
    2. Grubbstrom, Robert W. & Olhager, Jan, 1997. "Productivity and flexibility: Fundamental relations between two major properties and performance measures of the production system," International Journal of Production Economics, Elsevier, vol. 52(1-2), pages 73-82, October.
    3. Hanf, Jon Henrich & Pieniadz, Agata, 2007. "What does the 'New Quality' mean in view of Polish dairy cooperatives?," 105th Seminar, March 8-10, 2007, Bologna, Italy 7858, European Association of Agricultural Economists.
    4. Carlsson, Bo, 1989. "Flexibility and the theory of the firm," International Journal of Industrial Organization, Elsevier, vol. 7(2), pages 179-203, June.
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