Diversification of the development level of multifunctional farms from the central Pomerania region in Poland
2018
Zawadzka, D., Koszalin Univ. of Technology (Poland). Faculty of Economics. Dept. of Finance | Kurdys-Kujawska, A., Koszalin Univ. of Technology (Poland). Faculty of Economics. Dept. of Finance
Diversification of farm income sources is an important way of counteracting the low profitability of farmers' activities. It also contributes to a more efficient use of resources and ensures a long-term stabilization of household income for farmers. The aim of this study is to determine the level of development of multifunctional farms and to indicate which factors influence this development. The study was carried out on a sample of 256 farms in Central Pomerania. We hypothesized that the determinant of development in multifunctional agricultural holdings is the level of diversification of income sources, where higher income diversification is associated with an increase in total incomes of farmers' households and their higher profitability. In order to determine the degree of variation in the level of development of multifunctional farms, a linear ordering method based on Z. Hellwig's taxonomic measure of development (TMD) was used. Information weights were used to determine the factors that had the greatest impact on the studied phenomenon. The results show that multifunctional farms in the Central Pomerania region are characterized by a high level of development differentiation. The level of development depends on the degree of diversification of income sources as well as the period of management of the farm by its owner. The other characteristics related to the agrarian structure of the farms were of marginal importance. Hence, the state's policy on supporting the development of agricultural holdings should focus on activities that will result in expanding the opportunities for diversification of income sources. The article is a part of the discussion on the impact of diversification on rural development, including the development of diversified agricultural holdings.
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