THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL

The paper aimed to evaluate the effectiveness of substituting a stream of capital for human labour in commodityfarms in Poland depending on their production potential. The studies were based on unit data from the monitoringof the Polish FADN from 2016, using the Cobb-Douglas agricultural production...

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Main Authors: Dionizy Niezgoda, Anna Nowak, Ewa Wójcik
Format: Article
Language:English
Published: Polish Association of Agricultural and Agribusiness Economists 2018-06-01
Series:Annals of the Polish Association of Agricultural and Agribusiness Economists
Subjects:
Online Access:http://rnseria.com/gicid/01.3001.0012.1504
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author Dionizy Niezgoda
Anna Nowak
Ewa Wójcik
author_facet Dionizy Niezgoda
Anna Nowak
Ewa Wójcik
author_sort Dionizy Niezgoda
collection DOAJ
description The paper aimed to evaluate the effectiveness of substituting a stream of capital for human labour in commodityfarms in Poland depending on their production potential. The studies were based on unit data from the monitoringof the Polish FADN from 2016, using the Cobb-Douglas agricultural production function method. Using therelationship between agricultural farm production and production factors (workload, cropland area and streamof capital) as the basis for determining isoquant equations and marginal rates of substitution, the effectivenessof substitution was evaluated for two groups of farms: classified as small and medium large farms in terms ofeconomic size. The most effective factor affecting production on the farms was capital. Studies showed that in bothanalyzed groups of farms substituting capital for human labour was advantageous. However, substitution turnedout more profitable in the group of small farms in comparison to farms having a higher production potential.
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publishDate 2018-06-01
publisher Polish Association of Agricultural and Agribusiness Economists
record_format Article
series Annals of the Polish Association of Agricultural and Agribusiness Economists
spelling doaj-art-e7a366cf8e034dda9a4f191a4c781a442025-08-20T01:47:36ZengPolish Association of Agricultural and Agribusiness EconomistsAnnals of the Polish Association of Agricultural and Agribusiness Economists2657-781X2657-78282018-06-01XX311411910.5604/01.3001.0012.150401.3001.0012.1504THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIALDionizy Niezgoda0Anna Nowak1Ewa Wójcik2Państwowa Szkoła Wyższa im. Papieża Jana Pawła II w Białej PodlaskiejUniwersytet Przyrodniczy w LublinieUniwersytet Przyrodniczy w LublinieThe paper aimed to evaluate the effectiveness of substituting a stream of capital for human labour in commodityfarms in Poland depending on their production potential. The studies were based on unit data from the monitoringof the Polish FADN from 2016, using the Cobb-Douglas agricultural production function method. Using therelationship between agricultural farm production and production factors (workload, cropland area and streamof capital) as the basis for determining isoquant equations and marginal rates of substitution, the effectivenessof substitution was evaluated for two groups of farms: classified as small and medium large farms in terms ofeconomic size. The most effective factor affecting production on the farms was capital. Studies showed that in bothanalyzed groups of farms substituting capital for human labour was advantageous. However, substitution turnedout more profitable in the group of small farms in comparison to farms having a higher production potential.http://rnseria.com/gicid/01.3001.0012.1504efficiencysubstitutionproduction factorscommercial farmsregression equations
spellingShingle Dionizy Niezgoda
Anna Nowak
Ewa Wójcik
THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
Annals of the Polish Association of Agricultural and Agribusiness Economists
efficiency
substitution
production factors
commercial farms
regression equations
title THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
title_full THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
title_fullStr THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
title_full_unstemmed THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
title_short THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
title_sort effectiveness of substituting capital stream for human labourin commercial farms with different production potential
topic efficiency
substitution
production factors
commercial farms
regression equations
url http://rnseria.com/gicid/01.3001.0012.1504
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AT ewawojcik theeffectivenessofsubstitutingcapitalstreamforhumanlabourincommercialfarmswithdifferentproductionpotential
AT dionizyniezgoda effectivenessofsubstitutingcapitalstreamforhumanlabourincommercialfarmswithdifferentproductionpotential
AT annanowak effectivenessofsubstitutingcapitalstreamforhumanlabourincommercialfarmswithdifferentproductionpotential
AT ewawojcik effectivenessofsubstitutingcapitalstreamforhumanlabourincommercialfarmswithdifferentproductionpotential