Determinants of the use of subsidies for the development of rural areas by small agricultural holdings: case of Poland
2019
Wieliczko, B., Institute of Agricultural and Food Economics – National Research Inst., Warsaw (Poland) | Sompolska-Rzechula, A., West Pomeranian Univ. of Technology in Szczecin (Poland). Faculty of Economics. Dept.of Applied Mathematics in Economics | Kurdys-Kujawska, A., Koszalin Univ. of Technology (Poland). Faculty of Economics. Dept. of Finance
The study analysed factors influencing farmers' decisions on the use of subsidies for rural development in small farms in Poland. The study included technical, economic and social features of 1,485 farms with an area of up to 10 ha of UAA participating in the FADN system in 2016. Applying an econometric probit model, variables were identified that should be taken into account when developing rural development policy aimed at increasing the likelihood of using subsidies in farms and thus fostering the achievement of the CAP objectives. The study showed that four variables were significant of eleven analysed. They presented a good fit into the model, as evidenced by the used measures for assessing the quality of the model (coefficient Rsub(calc)sup(2) and ROC curve). It was found that the decision to use subsidies for rural development in small farms in Poland depends on the farmer's level of education, the quality of the land, the area of arable land and the efficiency of agricultural activity. The chance of using subsidies unrelated to production in small farms grows with increasing area of arable land. On the other hand, the chance of using subsidies for rural development decreases with the increase in the farmer's level of education, better soil quality and increased agricultural productivity. The presented research shows that the characteristics of farmers (education), technical characteristics of farms (soil quality, agricultural area) and the agricultural system (agricultural productivity) are important aspects that should be taken into account in the creation of a new conceptual framework for rural development policy to intensify use of subsidies by farmers from small farms. A comprehensive approach to agricultural development programs, including a whole range of factors that influence farmers' decisions on the use of subsidies for rural development will bring tangible results in the form of significant and sustainable development.
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