TY - JOUR
T1 - The Efficiency of Public Financial Support Investments into Dairy Farms in Poland by the European Union
AU - Zalewski, Krzysztof
AU - Bórawski, Piotr
AU - Żuchowski, Ireneusz
AU - Parzonko, Andrzej
AU - Holden, Lisa
AU - Rokicki, Tomasz
N1 - Funding Information:
Interventionism in the European Union (EU) consists of conducting a policy in the community that not only allows for harmonious change, but also allows for the development of the economies of the countries that make it up. Only then will economic growth and development be possible throughout the community. In connection with such assumptions, the European Union supports the economies of the community countries, as well as those striving for integration with the EU. Farms invest in machinery, milking systems, and other equipment [4]. This is done through the transfer of funding from European funds. These funds must be allocated by the candidate countries for the development and adjustment of individual industries and agriculture to the European Union (EU) standards. The European Union has a community budget. A characteristic feature of this budget is that it cannot be used as a macroeconomic policy tool that could fulfill regulatory functions for the budgets of the community countries. However, a feature of state budgets is the fact that an important role is, in fact, played by the budget deficit, and the properly conducted financial policy of the state towards it, through this deficit. The most important item in the EU budget on the expenditure side is agriculture. In the decade from 1960 to 1970, as much as 85% of the expenditure from the community budget was allocated to this sector of the economy. It is still a critical point, but the reforms carried out with greater or lesser success allowed for the reduction of budget expenditures in the following years.
Publisher Copyright:
© 2022 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2022/2
Y1 - 2022/2
N2 - The main aim of this research was to evaluate the efficiency of the use of public financial support investment activities into selected dairy farms in Poland. The research targeted 207 farms that earned their living through milk production and benefited from the 2011–2014 European Union (EU) financial support for investments carried out under the “modernization of agricultural holdings” included in the Rural Development Programme (RDP 2007–2013). Two research hypotheses were developed for this work. The first research hypothesis, “the possibility of obtaining funding for an investment is a factor that determines its implementation”, was positively verified. This was mainly due to the size of the investments carried out in the research farms, where an average increase in fixed assets was recorded at the level of 90%. The econometric calculations were carried out indirectly from the declarations of the farmers themselves, who, during the research, excluded the possibility of carrying out investments without receiving external support. The second research hypothesis, “investments carried out in farms improved their economic situation”, was positively verified. This was shown with the calculated results of agricultural income in the research farms, which increased in the analyzed period from 66.5%, to 125%.
AB - The main aim of this research was to evaluate the efficiency of the use of public financial support investment activities into selected dairy farms in Poland. The research targeted 207 farms that earned their living through milk production and benefited from the 2011–2014 European Union (EU) financial support for investments carried out under the “modernization of agricultural holdings” included in the Rural Development Programme (RDP 2007–2013). Two research hypotheses were developed for this work. The first research hypothesis, “the possibility of obtaining funding for an investment is a factor that determines its implementation”, was positively verified. This was mainly due to the size of the investments carried out in the research farms, where an average increase in fixed assets was recorded at the level of 90%. The econometric calculations were carried out indirectly from the declarations of the farmers themselves, who, during the research, excluded the possibility of carrying out investments without receiving external support. The second research hypothesis, “investments carried out in farms improved their economic situation”, was positively verified. This was shown with the calculated results of agricultural income in the research farms, which increased in the analyzed period from 66.5%, to 125%.
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U2 - 10.3390/agriculture12020186
DO - 10.3390/agriculture12020186
M3 - Article
AN - SCOPUS:85124160210
SN - 2077-0472
VL - 12
JO - Agriculture (Switzerland)
JF - Agriculture (Switzerland)
IS - 2
M1 - 186
ER -