2015Unpublished venueOpen access

Small dairy farms - perspective of income after 2015

Ewa Kołoszycz, Michał Świtłyk, Kołoszycz, Ewa, Świtłyk, Michał

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Abstract

The article concerns the problems of profitability of dairy farms, which ac¬cording to classification of the Central Statistical Office, belong to the group of very small and small farms. Analysis of production and economic situation covers the years 2015-2020 and takes into account the changes in the regula¬tions in terms of direct support for farms. Data from 94 farms, characterised by high specialisation in the production of milk, were used for the purpose. The study takes into account the volatility of milk prices and milk yield of cows this, in turn, allowed to achieve distribution of agricultural income in each year of the analysis. The results show that small dairy farms in the coming period can expect an increase in farm income, but their level in half of the farms will not exceed the income parity. The risk of negative agricultural income refers to a small number of farms and the occurrence of this phenomenon is unlikely.

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What this paper is about

The article concerns the problems of profitability of dairy farms, which ac¬cording to classification of the Central Statistical Office, belong to the group of very small and small farms. Analysis of production and economic situation covers the years 2015-2020 and takes into account the changes in the regula¬tions in terms of direct support for farms. Data from 94 farms, characterised by high specialisation in the production of milk, were used for the purpose. The study takes into account the volatility of milk prices and milk yield of cows this, in turn, allowed to achieve distribution of agricultural income in each year of the analysis. The results show that small dairy farms in the coming period can expect an increase in farm income, but their level in half of the farms will not exceed the income parity. The risk of negative agricultural income refers to a small number of farms and the occurrence of this phenomenon is unlikely.

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Available abstract

The article concerns the problems of profitability of dairy farms, which ac¬cording to classification of the Central Statistical Office, belong to the group of very small and small farms. Analysis of production and economic situation covers the years 2015-2020 and takes into account the changes in the regula¬tions in terms of direct support for farms. Data from 94 farms, characterised by high specialisation in the production of milk, were used for the purpose. The study takes into account the volatility of milk prices and milk yield of cows this, in turn, allowed to achieve distribution of agricultural income in each year of the analysis. The results show that small dairy farms in the coming period can expect an increase in farm income, but their level in half of the farms will not exceed the income parity. The risk of negative agricultural income refers to a small number of farms and the occurrence of this phenomenon is unlikely.

Key concepts: Profitability index, Farm income, Agriculture, Agricultural science, Production (economics), Agricultural economics, Volatility (finance), Milk production

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