THE ROLE OF INNOVATION ON COMMERCIAL FARMS IN POLAND

Abstract

Changes in relations between production factors necessitate surveys into their
effect on the total value of production. This paper aims to determine the extent to
which the involvement of production factors in the production process, in particular
in connection with progress, that is, broadly interpreted innovation, had an
influence on the value of production of specific size farms determined based on
cropland area. The surveys were based on figures recorded for individual
commercial farms registered in the database of the Polish Farm Accountancy Data
Network (FADN). It ensured the methodological uniformity of data used in this
paper. The analysis of the production process on farms was carried out by means of
the Cobb-Douglas (C-D) production function method. The study makes it possible
to evaluate changes in the productivity of production factors on commercial farms
in years covered by the surveys. The flexibility of relations between total
production in PLN (Polish Zloty) and production factors, i.e. labour output in manhours
and total costs in PLN, was analyzed. Changes in the management
effectiveness of commercial farms which occurred when Poland joined the
European Union were evaluated. According to the survey, the level of technical
and organisational progress was the highest on farms with the largest cropland
area, i.e. 30 =< 50 ha and more than 50 ha, as well as on farms with the smallest
cropland area, i.e. less than 5 ha. The size of the farm sufficient to satisfy the
requirement of farming products is 10=<20 ha of cropland and 20=<30 ha of cropland.