Wages for Paid Labor, Farmers’ Own Labor Payment, and Production Efficiency in the Case of Polish Farms Classified by Types of Farming

Abstract

Abstract The aim of the research was to evaluate wages of wage earners and farmers’ own labor payment based on farm income in terms of various types of farming in Poland. The paper also examines the impact of subsidies on the payment of farmers’ own labor inputs and production efficiency. The research involved farms keeping accounting records, which were classified by the FADN methodology (TF8). The analysis uses standard results from 2010, 2015, and 2019 processed in the FADN EU system. Relatively low wages for wage earners were observed on farms specialized in permanent crops (EUR 2.12–2.76/hour) and horticulture (EUR 2.05–3.32/hour), and quite high on mixed farms (EUR 4.05–6.67/hour) and farms specialized in other grazing livestock (EUR 3.98–6.04/hour). Assuming wages for wage earners as the cost of one hour of farmers’ own labor, at the level of income without subsidies, farmers’ own labor was fully paid only on farms specialized in horticulture and granivores, as well as in 2010 and 2015 on farms specialized in permanent crops. On the other hand, income with subsidies ensured full payment of farmers’ own labor on farms specialized in horticulture and granivores; in 2010 on farms specialized in field crops, as well as in 2010 and 2015 on farms specialized in permanent crops and dairy cows. In the remaining cases (i.e., types and years), farmers’ own labor inputs were partially paid (from 22.2 to 96.9%). The research concerned commercial farms with market-oriented production. However, there are also farms in Poland, which are not so closely linked with market, therefore their economic situation may be much worse. As a consequence, their opportunities to generate income and pay for farmers’ own labor can be limited.