THE IMPORTANCE OF LOCAL INSTITUTIONS IN THE SUPPORT OF INVESTMENT ACTIVITY OF FARMS (THE CASE OF POLAND)

The institutional environment is an essential component of agriculture, an important determinant of performance and the transformation of the sector. Lack of certain institutions, or their weakness is a serious barrier to structural transformation and the modernization of agriculture. A special role in these transformations perform local institutions, which by direct contact with the farmer can effectively interact with the processes taking place in farms. Especially in investing activities associated with significant risk, institutional support is extremely helpful for farmers. The aim of the study is to identify the role of local institutions in the process of investing activities supporting farms in Poland. It was found that the most intense are the relations of farmers with local institutions conducive to the absorption of EU funds. A dominant role in Poland, in this respect, is carried out by public agricultural advisory.