Income Variability of Agricultural Households in Poland: A Descriptive Study

Among the different types of households, agricultural ones are perceived as the most exposed to the problem of income instability. Income fluctuations pose a threat not only to the financial stability of farming families but also to the sustainable development of the agriculture sector. Investigatin...

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Main Authors: Ryszard Kata, Małgorzata Wosiek
Format: Article
Language:English
Published: MDPI AG 2024-02-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/14/3/357
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author Ryszard Kata
Małgorzata Wosiek
author_facet Ryszard Kata
Małgorzata Wosiek
author_sort Ryszard Kata
collection DOAJ
description Among the different types of households, agricultural ones are perceived as the most exposed to the problem of income instability. Income fluctuations pose a threat not only to the financial stability of farming families but also to the sustainable development of the agriculture sector. Investigating the scale and factors of the variability of farmers’ household incomes is important in designing and monitoring agricultural policy measures that aim to stabilize farmers’ incomes. In this context, the main objective of this article is to assess the income variability of agricultural households in Poland and to identify the main correlates of farmers’ income fluctuations in the period 1996–2022. To emphasize the significance of the problem of income instability for agricultural households, a comparative assessment of income variability was performed (relative to non-agriculture households). Furthermore, two research subperiods (1996–2003; 2004–2022; before and after EU accession) were distinguished to capture the association between the Common Agriculture Policy (CAP) and the stability of agricultural income. The study focusses on associations between variables (regression and correlation analyses were used). The income of agricultural households was shown to exhibit greater variability (year-on-year) than the income of households of workers and of self-employed people, with a lower scale of fluctuations after 2004. Furthermore, the study reveals a group of factors that could be correlated with the variability of the income of agricultural households: income structure (share of income from agriculture), natural and climatic conditions (variability of the yields and agricultural production), and changes in prices of the means of agricultural production. The findings raise, however, a question about the effectiveness of CAP instruments in stabilizing agricultural income.
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spelling doaj.art-0a0722085edc41ad9024d7c5186105ff2024-03-27T13:15:50ZengMDPI AGAgriculture2077-04722024-02-0114335710.3390/agriculture14030357Income Variability of Agricultural Households in Poland: A Descriptive StudyRyszard Kata0Małgorzata Wosiek1Institute of Economics and Finance, University of Rzeszow, ul. Ćwiklińskiej 2, 35-601 Rzeszow, PolandInstitute of Economics and Finance, University of Rzeszow, ul. Ćwiklińskiej 2, 35-601 Rzeszow, PolandAmong the different types of households, agricultural ones are perceived as the most exposed to the problem of income instability. Income fluctuations pose a threat not only to the financial stability of farming families but also to the sustainable development of the agriculture sector. Investigating the scale and factors of the variability of farmers’ household incomes is important in designing and monitoring agricultural policy measures that aim to stabilize farmers’ incomes. In this context, the main objective of this article is to assess the income variability of agricultural households in Poland and to identify the main correlates of farmers’ income fluctuations in the period 1996–2022. To emphasize the significance of the problem of income instability for agricultural households, a comparative assessment of income variability was performed (relative to non-agriculture households). Furthermore, two research subperiods (1996–2003; 2004–2022; before and after EU accession) were distinguished to capture the association between the Common Agriculture Policy (CAP) and the stability of agricultural income. The study focusses on associations between variables (regression and correlation analyses were used). The income of agricultural households was shown to exhibit greater variability (year-on-year) than the income of households of workers and of self-employed people, with a lower scale of fluctuations after 2004. Furthermore, the study reveals a group of factors that could be correlated with the variability of the income of agricultural households: income structure (share of income from agriculture), natural and climatic conditions (variability of the yields and agricultural production), and changes in prices of the means of agricultural production. The findings raise, however, a question about the effectiveness of CAP instruments in stabilizing agricultural income.https://www.mdpi.com/2077-0472/14/3/357farmer householdsavailable income of householdsvariability of farmers’ household incomesgross disposable income in the households sector
spellingShingle Ryszard Kata
Małgorzata Wosiek
Income Variability of Agricultural Households in Poland: A Descriptive Study
Agriculture
farmer households
available income of households
variability of farmers’ household incomes
gross disposable income in the households sector
title Income Variability of Agricultural Households in Poland: A Descriptive Study
title_full Income Variability of Agricultural Households in Poland: A Descriptive Study
title_fullStr Income Variability of Agricultural Households in Poland: A Descriptive Study
title_full_unstemmed Income Variability of Agricultural Households in Poland: A Descriptive Study
title_short Income Variability of Agricultural Households in Poland: A Descriptive Study
title_sort income variability of agricultural households in poland a descriptive study
topic farmer households
available income of households
variability of farmers’ household incomes
gross disposable income in the households sector
url https://www.mdpi.com/2077-0472/14/3/357
work_keys_str_mv AT ryszardkata incomevariabilityofagriculturalhouseholdsinpolandadescriptivestudy
AT małgorzatawosiek incomevariabilityofagriculturalhouseholdsinpolandadescriptivestudy