Farms and their Holders Implementing Agri-Environment-Climate Measures

Abstract

Abstract The article contains characteristics of farms implementing agri-environment-climate measures in diverse natural conditions defined by the valorization index of agricultural production area. Considering the farm size, three types of the conditions were distinguished: difficult, average, and favorable. Attention was focused on the production potential of farms, their human capital, and economic situation. The subject of the research was a group of 1,175 individual farms covered by the Polish FADN, which implemented agri-environment-climate measures under the 2014–2020 common agricultural policy between 2018 and 2020. It was not a representative sample for the entire population of farms implementing the above-mentioned measures. Farms operating in difficult habitat conditions had a lower production potential (agricultural area, economic size, capital, and capital–labor ratio). The share of farmers with agricultural education was also lower in the group. As a result, income from such farms was lower, the fixed assets replacement rate was lower and the farm was incapable of competing on the domestic market. The ability was demonstrated only by farms functioning in favorable habitat conditions. The share of payments in the income of the analyzed farms was also higher, on average, by 21.7 p.p., as compared to the average share of payments in the income of other farms with a similar agricultural area. The study shows that there is a very large share of subsidies in the income of the groups of farms implemetnting agri-environment-climate measures and a clear positive connection between longer working hours (at least 2120 hours per year) of the farm manager with the economic situation of the farm.