Greening of Polish Agriculture and Public Expenditure – Empirical Research Results

Aim: This paper attempts to close the research gap on the reasons for discontinuing organic farming in Poland. The goal is to explore the aspects that make Polish farmers cease organic farming and the barriers and factors which condition their re-embarking on the organic path. Methodology: This paper relies on data from a survey of 134 Polish farmers who moved away from organic farming. This study was carried out with former farmers who ceased organic farming between 2014 and 2018. It comprised two stages: the first was an interview with a non-random group of 18 farmers who discontinued organic farming. The second stage used a diagnostic survey with an original questionnaire administered to farmers who shifted away from organic production. The survey was conducted in 2021. Initially, 534 questionnaires were sent by mail. As the return rate was low, the procedure was repeated twice. As a result, 134 questionnaires were received back out of 1,569. Results: The study found the following to be the key reasons for discontinuation: end of the five-year period of financial support, high production costs, insufficient levels of support, low yields, and un-profitable production. The “committed pragmatic farmers” was the most prevalent of the three types covered by the study. The drivers of their decision to go organic included both economic (financial support and incomes) and environmental aspects. However, the key reasons for ceasing organic farming were of a financial (end of the five-year support period) and institutional (burdensome bureaucracy and inspections) nature. Conclusions: Although certain countries witness considerable discontinuation rates, there is a relative scarcity of papers dealing with this issue. Poland is an example of a country which has seen an acceleration in the shift away from organic farming over the recent years, resulting in a drop in the area of organic farmland (by 185,000 ha from 2014 to 2018).

Summary The main aim of this paper is to present the relation between the state of the natural environment and the food quality produced on a given area. The two groups of analysed business activities are ecological farms and eco-friendly food processing plants. In the work, the author conducted a comparative analysis of the Polish voivodships with large and small shares of valuable natural areas in the total area of the voivodship in relation to the ecological farms and eco-friendly food processing plants. The problem discussed in this paper is poor quality of food. The main aim of the research was verification of the hypothesis that the quality of food is better if the food is produced in regions with a large scale of protected areas. The paper includes an analysis of the effect of the natural environment on the quality of food produced on a given area. There are 2 groups of entities affecting food quality: organic farms and eco-friendly food processing farms. For the first group, increasing demand for high quality food will determine the rise in quantities of sustainable agriculture farms offering organic products. Organic agriculture farms specialize in high quality food production. Eco-friendly food processing plants are the second group of entities affecting the quality of foodstuffs. Local food processing plants that use high quality raw material contribute to the high quality of final foodstuffs (Ministry of Agriculture and Rural Development, 2011). The paper presents a comparative analysis of the voivodships in Poland with large and small participation of protected areas in the general area of the voivodship in relation to organic farms and eco-friendly food processing plants.

This study was designed to provide a thorough characterization of individual organic farms with certified animal production in Poland in the years 2009-2011. The study consisted of a direct survey using a standard questionnaire. Monitoring of organic farms showed that organic animal production in Poland is still developing. The most common type is backyard subsistence farming for own consumption and possibly for direct sales at local markets. Organic farms with an area exceeding 20 ha tend to orient themselves towards specialized production of cattle, sheep or pigs, while medium-sized organic farms specialize in pork and organic lamb production. However, the observed specialization in livestock production on organic farms is still relatively small.

Organic farms form a perspective segment of the Polish agriculture, which havebeen developing very dynamically since Poland accession to the European Union(from 2004). Changes in the population of these agricultural holdings` group arethe result of the growing demand for organic agricultural products, the growingenvironmental awareness of society, as well as current agricultural policy focusedon agrienvironmental practices, for which farmers are remunerated in the form ofsubsidies. Organic production methods include good soil condition maintenance,plant nutritious needs and animal welfare requirements. Organic farms may bedifferently organised. There are three basic forms of organic farms organization,namely: farms that are in transition to organic production system (areimplementing environmental practices in stages); farms that combine organic andconventional production system; farms organized solely according to the organicprinciples. Legal requirements strictly specify what features an organic farm shouldhave, in each of the identified organisational forms. The aim of the article is tocompare organizational forms of organic farms in Poland in terms of productionand economic efficiency. There were analyzed organic farms in comparison toconventional farms included in Farm Accountancy Data Network 2015. Theresearch were conducted on the basis of indicators analysis, considering calculationreflected costs, production, economics and subsidy value connected with theCommon Agricultural Policy directed to farms.

The development of organic farming is determined by many factors. On the one hand, it is an increase in demand for food produced in this production system, on the other it is a subsidy system for organic farming under the CAP. The purpose of the article is a comparative analysis of the direction of changes in the development of organic farming in Poland and Latvia compared to the EU in the years 2000-2017. Information was analysed on the organic farming i.e. the area of organic crops, the number of certified farms and organic retail sales, based on FIBL data from the years 2000–2017. An analysis of the trend of changes in organic farming in Poland and Latvia indicates that the development of organic farming in both countries has clearly accelerated after their accession to the EU and after covering organic farming by the CAP support system. However, the case of Poland is definitely different from the trend of changes in organic farming in Latvia and in the EU, where both the number of organic farms and their area increased, with the simultaneous development of the organic food market. There are many indications that mistakes were made in the organic farming subsidy system.

Organic farming has attracted attention in Indonesia because consumers increasingly prefer the putative safety and health benefits of organic farm products. Although national standards for organic farm products were established in 2002, some products sold as organic products in supermarkets do not carry the certification mark. This study investigated organic rice farming on the island of Bali in Indonesia using fieldwork to ascertain the actual increase in organic farming. Results revealed that government certified organic farming used originally produced cattle manure to grow organic rice. At the market, however, some “quasi-organic farming” products, which had not been given the organic farming certification, were sold as organic rice. This eventuality suggests that although organic farming has been increasing steadily in Bali, development of sustainable recycling agriculture demands technical guidance and increased publicity for organic farming, based on national certification, to address misunderstandings and confusion about the definitions of organic farming and national standards that are transparent to producers and consumers.

The main research problem discussed in this paper involves evaluation of the motives of agricultural producers for pursuing and developing organic production. The aim of this study is to identify and evaluate the role of social values in stimulating decisions of involvement in organic production. Analytical observations were conducted on the basis of responses to surveys on a nation-representative sample in Poland (350 conventional farms and 70 organic farms in 2011; 260 conventional farms and 65 organic farms in 2019). Analyses were conducted in relation to the potential and perspectives for development of organic farming. They were focused on identifying the original motives for such decisions (incentives and disincentives). This allowed for effective evaluation of both the trend and the pace of the studied processes. The development potential of organic farming in Poland was estimated at 5–15% of the total number of farms. The most important factors encouraging farmers to take up production are associated with social values (care for the natural environment and family health). A significant chance for the development of organic production is the expected demand growth, which is also related to social values: the increasing environmental awareness and environmental change of consumption patterns.

The article analyses the condition of organic farming in Poland on the basis of the data published by the Agricultural and Food Quality Inspection, the Central Statistical Office and available literature sources. The aim of the study was to assess the condition and prospects for the development of organic produc-tion in Poland. The results of the analysis indicate that there is a growing demand for organic products among consumers, which may contribute to the development of organic farming and an in-crease in the processing of organic products. However, in recent years, a decline in the number of organic farms and the total area of organic farming has been observed. Fodder plants, cereals as well as meadows and pastures are predominant in the structure of crops. Orchards, berries and vegetable cultivation as well as industrial crops are of lesser importance. Poultry, sheep and dairy cattle are predominant in organic livestock farming, whereas goats and cattle intended for meat account for a lower percentage. Among the organic agricultural products milk and dairy products are produced in the greatest quantities.

Organic agriculture is a sustainable agricultural system with different principles that is carried out within the scope of certain rules. Due to the substitution of organic inputs with chemical inputs, getting the products ready for sale, weed control, and similar operations by hand, enterprises engaged in organic farming require a larger labor force. All these jobs increase employment opportunities in rural areas and allow small family businesses to continue production. In this study, it has been tried to reveal the relationship between organic agriculture and agricultural employment with the help of an econometric model and to determine the effect of organic agriculture on employment. The study analyzed a 17-year time series of data spanning from 2004 to 2021 to identify the factors influencing agricultural employment, taking into account various aspects of organic agriculture, including the number of organic agricultural products, the count of farmers engaged in organic agriculture, the area dedicated to organic agricultural production, the organic wild collection area, the total area allocated for organic agricultural production, the quantity of organic agricultural production, the number of entrepreneurs involved in organic agriculture, the unit price of subsidy for organic agriculture, and the total amount of subsidy provided to organic agriculture. Based on the results of the regression analysis, it was determined that the number of organic products does not have a significant effect on agricultural employment. In addition, it was found that the wild harvesting area is positively significant for agricultural employment and that the total production area of organic agriculture and the amount of subsidy are negatively significant. The results of the research reveal that a 1% increase in the wild harvesting area related to organic agriculture would lead to an increase of more than 0.28% in the agricultural employment rate, while a 1% increase in the total production area and the amount of subsidy would lead to a decrease of 0.40% and 0.44% in the agricultural employment rate, respectively.

In modern economic conditions, economic components must be based on environmental components, especially for agricultural production, which ensures economic and food security of the country. Therefore, management system of agricultural enterprises has to be supplemented with environmental and agro-chemical components in order to improve and increase soil quality. The peculiarities of ecological agrochemical farm lands’ evaluation and certification in Ukraine were considered in the article. Their necessity for farmlands used for manufacturing organic raw materials and products was determined. Land classification and characteristics according to the degree of suitability for manufacturing organic products and raw materials are given: suitable, limited suitable, unsuitable lands. Indices of soil suitability for organic farming and their standards have been studied, namely: humus content; topsoil depth; particle size distribution; reaction of soil solution; the sum of absorbed bases (Ca + Mg); soil density; the content of mobile compounds of phosphorus, potassium, micro- elements, easily hydrolyzed nitrogen, nitrogen by nitrification power and mobile sulfur in the soil. Emphasis is placed on land suitability for organic farming, as important direction of agricultural production eco-balance. Agro-technological measures to improve ecological and agro-chemical condition of the soil used in organic farming are presented, considering sanitary-hygienic condition of the soil, its ecological stability and agro-chemical soil fertility. Interdependence and responsibility of farmers for soil condition as a result of their economic activities, the expediency of forecasting possible contamination of crops grown in the future have been mentioned. It is emphasized that the received information is entered into the ecological passport of farms, which implies the manufacturing of organic crop growing and livestock farming products at the level of world standards. The influence of ecological-agrochemical condition of land under organic farming on the quality of raw materials and products was determined. Forecasting the quality of organic farm products and raw materials according to their biological full-value condition and environmental safety is carried out by assessing the groups of indicators: qualitative assessment of farm’s soil; ecological and agro-chemical certification of farm lands; environmental impact assessments of farming system and technologies of crop cultivation; ecological and agro-chemical assessment of lands for growing organic farm raw materials and products. Emphasis is placed on social responsibility of agricultural manufactures for products and soil quality. Thus, it is necessary to improve soil quality in Ukraine by introducing organic farming, which will ensure land management stabilization and strengthen their adaptability and enable to grow high-quality organic farm raw materials and products.

The European Commission's Farm to Fork (F2F) strategy, under the European Green Deal, acknowledges that innovative techniques, including biotechnology, may play a role in increasing sustainability. At the same time, organic farming will be promoted, and at least 25% of the EU's agricultural land shall be under organic farming by 2030. How can both biotechnology and organic farming be developed and promoted simultaneously to contribute to achieving the Sustainable Development Goals (SDGs)? We illustrate that achieving the SDGs benefits from the inclusion of recent innovations in biotechnology in organic farming. This requires a change in the law. Otherwise, the planned increase of organic production in the F2F strategy may result in less sustainable, not more sustainable, food systems.

Apart from the social and environmental elements of development, an economic aspect of organic production proves to be very important. Strong and weak points of organic milk production can be identified on the basis of a detailed analysis of accounting data at farm and product (milk) level. The main objective of the study was to compare the competitiveness of cow’s milk production in organic and conventional farms in the years 2006-2007. The results obtained do not prove significant intensification of milk production in the surveyed organic farms. In comparison with conventional holdings, milk yield per dairy cow was much lower, as well as the selling price for milk. It should be emphasised, however, that milk production in organic farms was a profitable activity, but with a very high share of subsidies in this income.

In 1990, organic farming in Poland started with only 27 farms. The number of organic farmsincreased more than double by 2000. Since then, organic land increased more than tenfold. In 2009,there were already nearly 17,423 organic food producers and 277 processors, i.e. over 367,000 hectaresof agricultural land were managed organically, which constituted 2.28% of the country’s totalagricultural land. Twenty farms, out of over 2090, producing organic food were selected in the area ofLublin (Eastern Poland). They were given the questionnaire about using the organic seeds in theirproduction in the season 2010-2011. Eight-five percent of the farmers used organic seeds in theirorganic food production, however, only 35% of them used organic seeds exclusively, although threefourth of them claimed that it was right to use them. Over half of the farmers used home-saved seeds intheir organic food production or exchanged them with other organic farmers. Only one third of thefarmers bought organic seeds from the seed companies. All the farmers, who used organic seeds,thought the quality of the seeds was good. Still, less than one third of them thought that the tolerance todiseases and pests of the cultivars used for organic production was good. Eighty percent of the seedsused for organic food production had no treatment. Modern organic ways of farming were used only by25% of the surveyed farmers.

Organic farming in Poland covers farms using only organic farming methods and farms where organic and conventional systems coexist. Statistics capture them jointly as organic farms. This distorts the real picture of the Polish organic farming, especially the average area of farms, and production and economic situation, which is evidenced by data from organic farms keeping accounting under the Polish FADN. There were considerable differences between the analysed organic and “mixed” farms as regards the cropping structure and livestock population, level of incurred costs and production efficiency, thereby their profitability. Results of the analyses proved that mixed farms were fairly competitive in economic terms against farms using strictly organic production methods, and their income was far less dependent on external support, although the level of subsidies to operating activities per 1 ha of utilised agricultural area was close to the level noted for organic farms.

The objective of the present work is to evaluate the performance of organic farms, their production potential, the size of crop and livestock production and the opportunities for their development in Poland in the years 2005–2020. The work draws on statistical data published by the Agricultural and Food Quality Inspection (IJHARS) from the years 2005–2021. The data was characterised by calculating the dynamics index. Moreover, 18 organic farms located in the Mazowieckie Voivodship were surveyed. The primary data was collected using the direct interview method at the end of 2020. The results were used to calculate the number and percentage of organic farms. In the studied period, that is in the years 2005–2020, a variety of changes took place in organic farming in Poland. Until 2013, there occurred a steady increase in the number and area of organic farms. From 2014 to 2020, the number dropped by 30% whereas the organically farmed area decreased by 24%. What is more, a decline in the number of medium-sized farms (5–20 ha) was accompanied by a rise in the number of larger farms (whose area exceeded 20 ha). There were also noticeable changes in the structure of land use, organic production being abandoned in grasslands (meadows and pastures) in favour of cereals and other crops, orchards, berries and field vegetables. In the years 2005–2020, there was a positive trend of growing numbers of livestock, that is dairy cows, sheep, goats, it being particularly high for young beef cattle and laying hens. By contrast, a decline was observed in the number of fattening swine. The causes of the declining numbers of organic farms and organically managed area are economic in character and include scattered production, difficulties with selling organic products, strong reliance of organic production, animal production in particular, on public support, high costs and low profitability of this type of agricultural activity and low incomes earned by organic farms. The future performance of organic holdings and the development of this type of agriculture will be conditioned by both economic and organisational factors, as well as sufficient support of organic production, integration and cooperation among entities operating in this sector, well organised market as well as availability and promotion of organic products, which will hopefully increase demand on and marketisation of this production. It is important that organic farms should rely on balance between crop and livestock production so as to expand mixed production, which, in turn, will let them gain competitive advantage and become part of the concept of sustainable development.