OVERINVESTMENT IN POLISH AGRICULTURE

Abstract

The purpose of this paper was to assess the level of overinvestment in Polish farms grouped by economic size. As the volume of investments clearly continues to grow, the authors noticed the need to address that problem. Using FADN data, they developed their own method for measuring overinvestment, and identified its size and extent. Indeed, overinvestment proves to be widespread in Polish agriculture. The reasons probably include inadequate subsidies allocated under European Union aid schemes, and improper farm management practices. In the future, this could give rise to dysfunctions, ultimately resulting in farm bankruptcies.