OPTIMAL UTILIZATION OF EUROPEAN UNION GRANTS – A CASE STUDY

Abstract

Following Poland’s accession to the European Union, farmers were given new opportunities to make use of various form of support from EU funds. The goal of this work is to show the utilization of EU funds by an agricultural farm and optimization of its production. The task was made possible by means of two multicriteria linear-dynamic optimization models. The first model accounted for real production structure and EU subsidies. The subsidies were not included in the second model. The empirical material constituted real data on an agricultural farm located in the commune of Nowogard (West Pomeranian Voivodship). The results of the solutions indicated over a threefold increase of agricultural income, agricultural production and the amount of organic substance supplemented to the soil of an agricultural farm accounting for EU grants.