Impact of Direct Subsidies on Budgets of Agricultural Farms

Abstract

The article investigates the impact of direct subsidies on the budget of agricultural farms and the level of investment in the farms. A questionnaire survey was made among clients of a company which provides services in farming in Nidzicki District (powiat nidzicki). The respondents were farmers who benefit from direct subsidies to agricultural production. The research confirmed the research working hypotheses, in which the direct subsidies constitute 1/3 of the profit generated by agricultural farms and have a significant influence on the level of investment. The research aimed to determine the impact of direct subsidies on the budget of agricultural farms and their investment in fixed assets.