Jan Zwolak
Fixed assets in Polish agriculture between 1990 and 2004
Agriculture is crucial to the agribusiness system. The restructuring of agriculture into several layers reflects both the industry’s modernity, innovativeness and efficiency and the development of food production in Poland . Fixed assets are assuming an increasingly significant role in these transformations, not just technically-technologically but also in economic ecological and social welfare terms.
This research was aimed at tracking the development of fixed assets, determining the nature of this development and analysing its impact on agricultural output between 1990 and 2004. This objective is founded on the hypotheses that fixed assets create changes between themselves and their initial resources while the relative proportions of generic groups of fixed assets determine the efficient allocation of investment outlays.
The research materials consisted of Polish and international literature on the development of fixed assets, agricultural economics, mathematical statistics and theories of economic analysis, together with data obtained from national and provincial statistical yearbooks. The Central Statistical Office in Warsaw was another source of numerical data. The research covers the agricultural sector between 1990 and 2004. Curvilinear regression and straight line regression were the main analytical models employed although some use was made of statistical measures such as geometric mean, standard deviation, growth rates and structural indexes.
The concentration and direction of development and its ex post impact on the gross utility of fixed assets were used to build the power model which served as a mid-term prediction. The period 1994-1996 was used for range prediction and for estimating power models. Fulfilment of the prediction for the entire period under analysis would raise global output by 10.44%, 21.12% for final output and 5% for commodity outputs. The prediction allows for limited sales capacity and points up the necessity of gaining cost advantages.
The results of this research indicate that fixed assets determine work efficiency. A close relationship was observed between the overall rate of growth of fixed assets, the increased flexibility in final output and the outputs of individual commodities (1995 – 1998) and the ultimate rise in productivity. The research confirms the impact of investment outlays on the rise in global, final and commodity outputs. Economic efficiency was evaluated dynamically based on: 1) the ratio of increased efficiency to the rate of increase in total investment outlays; 2) the relationship between the rate of increase in investment outlays and the rate of increase in the overall productivity of fixed assets; 3) the relationship between the rate of growth of fixed assets versus the rate of increase in investment outlays and the rate of increase in the utilisation of fixed assets; and 4) the ratio of the rate of growth of commodity output to the rate of increase in total investment outlays in agriculture.