Determinants of Fixed Asset Investment in the Polish Farms

The aim of this study was to determine the factors affecting the level of investment activity of agricultural producers in Poland. Detailed studies included 4309 farms that kept accounts within the Farm Accountancy Data Network (FADN) accounting system in the years 2010–2018. The study uses Person’s linear correlation method, the multiple correlation method, and regression analysis. For the regression analysis, both static and dynamic models were applied. The level of expenditure on agricultural investment varied in the surveyed households and showed an upward trend during the years 2010–2018. Studies have shown that the investment activity of Polish farms largely depends on the possibility of raising funds from European Union programs dedicated, inter alia, to the development of agricultural holdings. The regression analysis demonstrated that the principal factors affecting the level of agricultural investment include: the amount of long-term liabilities, the family income of the farm, and the amount of investment subsidies. Preferential loans are an important parameter in a dynamic investment model. This study suggests that agricultural policy factors should be taken into account to ensure the appropriate development of Polish farms.