Adam Wąs

Changes in Polish Farmers’ Attitudes Toward Risk After Poland’s Accession to the EU

ABSTRACT This article presents the econometric estimation of the risk attitudes of Polish farmers. For that purpose, a model of production under risk has been employed. The research is based on data from the Polish Farm Accountancy Data Network (FADN), from the years 2004–2010. For the Polish farming sector, risk-related considerations became increasingly important after Poland’s EU accession in 2004. After the accession, Polish agriculture was affected by market liberalization, which was somewhat mitigated by CAP support. To examine the risk aversion of Polish farmers, an estimation procedure based on Antle’s (1987) approach has been applied. This study suggests that, as was the case in other countries, risk aversion decreased following EU accession, that is, the Arrow-Pratt measure of absolute risk aversion based on producers specializing in field crops systematically decreased over the analyzed period.

Factors determining the crop insurance level in Poland taking into account the level of farm subsidising

Despite efforts and pressures on the part of the State, the relatively small percentage of Polish farmers insure their crops. The paper analysed the determinants of taking out crop insurance, using logistic regression and FADN data (2004-2013). The models were estimated for the analysed population and by groups with a different subsidy rate. A novelty is the use of the Horvitz-Thompson estimator which allows us to generalise the results of the models on a national scale. It was found that crop insurance was mainly determined by received compensation and significant losses in the past yields, as well as by: value of the agricultural production, crop production intensity and soil quality. The results obtained in this part are consistent with the expected utility hypothesis. nThe impact of the level of subsidies received by farmers on insurance crop decisions was not confirmed, however, the models assessed for farms with a different subsidy rate point to the importance of subsidies as an income stabilising factor.

MIEJSCE I ROLA ROLNICTWA W PRODUKCJI ENERGII ODNAWIALNEJ W POLSCE I UE

The study attempted to assess the importance of agriculture in the process of renewable energy development in Poland and the EU. It was pointed out that, despite the large production potential, the share of agriculture in the production of renewable energy is relatively small in many countries, including Poland. It was stressed that a special role in the process of renewable energy production in agriculture can be played by agricultural biogas plants. Production of agricultural biogas is not only a way to generate renewable energy but also a manner for reduction of methane emissions, usually taking place when manure is stored on the farm. This is particularly important from the point of view of the EU’s climate policy. The experience of many countries shows that the growth in importance of renewable energy, particularly in the early stages of development of specified technology depends on the support by public funds. Available statistics suggest that the EU Member States present very different approach to the policy of RES support. In some EU countries (including Poland), a large part of public funds is directed to support “traditional” energy based on fossil fuels.