Investments in agriculture - Case of Poland

Abstract

This paper analyzes the value of investments and their impact on fixed-asset reproduction in agricultural holdings depending on the profile of production. The time of analysis spanned the years 2009 and 2014, and data originated from the FADN system. The analysis accounts for the value and structure of assets as well as changes over time, net investment values, the fixed-asset turnover ratio and debt ratio. Improvement of the fixed assets to total assets ratio occurred in all holdings, which contributed to improving their competitiveness. Growth effects did not occur in all holdings, however. Only pig holdings were characterized by the capability of reproducing assets. In other holding types, despite investment in fixed assets, the net investment value and asset reproduction rate were negative. The results of management are certainly dependent on economic circumstances, and these were variable. Regardless of the results obtained, undertaken investment activity should be evaluated positively, as it indicates that current variability of production conditions is not a limitation in longterm planning of an agricultural holding's development.