The Evaluation of Efficiency of Polish Agriculture

Abstract

The objective of the paper was to recognize the efficiency of Polish agriculture. We have studied data from Main Statistical Office (MSO) and compared the efficiency in the years 2000–2010. The data proved that the efficiency of Polish agriculture improved in the analyzed period. To measure the impact of macroeconomic variables we introduced these into the regression model. The macroeconomic factors included: X1 (nominal prices of land), X2 (land prices expressed in dt), X3 (inflation), X4 (investment in agriculture and hunting), X5 (balance of trade) and X6 (GDP). We wanted to recognize the impact of macroeconomic factors on: Y1 (gross output), Y2 (intermediate consumption), Y3 (gross value added). Multiple regression was used to measure the impact of macroeconomic factors on global production of agriculture. The strongest impact on gross value added had: X4 (investment in agriculture and horticulture) and X4 (trade balance). Poland is a member of European Union and the Common Agricultural Policy has improved the situation in agriculture. There are about 2 100 000 farms in Poland but only 300 000–400 000 are producing for the market. Other farms have social functions and are place for work for rural inhabitants.