Impact of growing costs on the profitability of crop production in Poland in the mid-term perspective

Abstract

Main aim of this paper was to demonstrate the impact of cultivation intensity on economic of selected activities of crop production in Poland. The projection of income of these activities in mid-term perspective, i.e. in 2016, has also been developed. Studies have shown that for cultivation technology of low intensity, as compared to high, the economic results of examined activities were more favourable. The profitability of production, expressed as a ratio of the value of production to economic costs, was higher by 10.0 to 52.7%. According to the projection results, in the highly intensive cultivation, high costs and dynamics of growth, stronger than growth of income, had a negative impact on the level of income. It is expected, even with an exceptionally high yield, income level will be lower than in the cultivation of low intensity. The results show that the use of technological progress can reduce a negative impact of chemicals on the environment while maintaining the high economic efficiency of production.

Keywords

• crop intensity
• direct costs
• income projection
• profitability
• yield