4.2. Features of Agriculture in Communes with a Particularly High Saturation of ANCs, as Compared to Other Communes in Poland
One of the most important factors determining successful agricultural activity is the quality of natural farming conditions. As predicted, communes with a particularly high saturation of ANCs and the remaining ones with ANCs, as compared to communes used for comparisons, are characterized by worse conditions for management. In this respect, the greatest disproportion to their disadvantage occurs in the case of communes with a particularly high ANCs mountains saturation, which are characterized by significant difficulties in land use due to, inter alia, unfavorable topography, an exceptionally high share of low-quality soils and a shorter vegetation period than in other areas of the country. A large disproportion also occurs in the case of communes with a particularly high proportion of ANCs zone 2, which are also generally characterized by exceptionally low soil quality and, as a result, high susceptibility to the effects of more and more frequent droughts in the country. It is worth adding that in Poland, especially in the areas, they result in large losses in agricultural production, mainly in the form of a decrease in the yield of arable crops, as well as limited availability and poorer feed quality of crops for farm animals.
The strength of communes with ANCs from the point of view of strengthening their role in providing public goods desired by the society is often the high natural and tourist value of the landscape, as evidenced by their value of the average NTI indicator. In the case of communes with a particularly high saturation of ANCs mountains, ANCs specific zone 2 and ANCs zone 2, on average, the NTI indicator exceeds 50 points per 100 points achievable, which means that more than half of the land in the communes is made up of permanent grasslands, forests, water reservoirs, wastelands and other areas not subject to strong anthropopressure. However, their great natural values are determined not only by the dominant form of landscape use, but also by exceptional value from the point of view of nature protection, as determined by the share of Natura 2000 areas in the total area. It turns out that in communes with a particularly high ANCs mountains saturation, their average share is by far the largest and exceeds 50% of the total area. Communes with a particularly high saturation of ANCs specific zone 1 (34.9%), ANCs zone 2 (33%), ANCs specific zone 2 (28.7%) and ANCs in total (28.2%) also have a large share. It should be noted that in communes with a particularly high saturation of ANCs and other communes with ANCs, as compared to communes being a reference point, there is a greater share of UAA with extensive agricultural production conducted in accordance with the HNVf concept in the total UAA. In this context, the most desirable is a large presence of the HNVf with exceptionally high natural value, which are the most important in communes with a particularly high saturation of ANCs mountains and ANCs zone 2 (
Table 2).
In 2021, 49.5% of the total number of farms and 47.4% of the total area of UAA covered by the CAP 2014–2020 in the country were in communes with a particularly high ANC saturation. In communes with a particularly high saturation of ANCs in total and ANCs zone 1, their share was the highest and amounted to 26.5 and 24.8% and 10.2 and 12.8%, respectively. In the remaining communes with ANCs, there were 38.4% of the total number of farms and 40.2% of the total area of UAA, and in communes without this type of UAA, the remaining ones were 12.1 and 12.4%, respectively (
Figure 5 and
Figure 6).
In 2016–2021, in all analyzed groups of communes, there was a decrease in the number of farms, mainly related to the ongoing process of concentration and specialization of agricultural production. However, in communes with ANCs, it was smaller and amounted to 3.9–6.2%, while in communes without ANCs—7.6%. The overall area of UAA was characterized by a diversified direction of changes. The greatest decrease occurred in communes with a particularly large share of ANCs specific zone 2 (by 1.2%) and mountains (by 0.4%), and an increase in communes with a particularly high share of ANCs natural zone 2 (by 0.3%). The remaining groups of communes retained an almost identical area of UAA (
Figure 5 and
Figure 6).
There were differences between the analyzed groups of communes in the case of the average UAA in farms. In this respect, farms in communes with a particularly high saturation of ANCs zone 1 and ANCs specific zone 1 stood out positively, while communes with a particularly high saturation of ANCs specific zone 2 and mountains stood out negatively. In the remaining analyzed groups of communes, it was more like the national average (11.1 ha) [
73]. It is worth adding that, in 2016–2021, in all groups of communes, there was an increase in the average area of UAA on farms, even though in communes with ANCs, it was slightly smaller, as compared to other communes. However, it should be emphasized that in ANCs, the increase in the average UAA on farms (due to the lower level of crop yields obtained there and often limited possibilities of increasing intensity of agricultural production) is, in the conditions of increasing competitive pressure, one of the basic methods of obtaining a larger scale agricultural production and, as a result, enables more favorable income from agricultural activity (
Figure 5).
In communes with ANCs compared to other communes, having worse management conditions results in differences in the structure of the UAA owned. How important they are for them is demonstrated by the smaller share of arable land and greater permanent grasslands, which are often located in areas where field cultivation is difficult or impossible. Among communes with ANCs, by far the largest share of permanent grasslands in the total UAA was recorded in communes with a particularly high saturation of ANCs mountains, ANCs zone 2, ANCs specific zone 2, ANCs in total and ANCs specific zone 1. A large share of permanent grasslands in the structure of UAA generally determined their greater focus on rearing animals fed with roughage. The only exception concerned communes with a particularly high proportion of ANCs specific zone 2, where the stocking of the animals per ha of UAA—despite the relatively high share of permanent grassland in the total UAA—was the smallest among all analyzed groups of communes with ANCs (
Figure 7 and
Figure 8).
The presence of livestock production is one of the basic conditions for profitable agricultural production in ANCs, where they are saturated with permanent grasslands, and arable land is generally characterized by a shortage of organic matter and, as a result, low water capacity. However, this production should be carried out in them at a level that limits the pressure on the state of the surrounding environment. In this context, organic farming has a lot to offer, the coexistence of plant and animal production is the most desirable form in it. It ensures optimal soil protection by maintaining and increasing fertility, including as a result of the use of natural fertilizers, as well as care for the good condition of the landscape, e.g., through extensive livestock farming. Generally, organic production can be a real chance for farms with conventional agricultural production in ANCs—especially those experiencing financial problems—to maintain agricultural viability while respecting environmental standards. It may also become an opportunity for the development of agritourism in the areas due to their usually great natural and landscape values. According to Prišenk and Turk [
74], sufficient production and good promotion of local products are the two main conditions for value-based food chains and for the further development of agriculture in ANCs.
Based on the figures in
Table 3, in 2021, 69.1% of the total number of farms with organic production supported under the current CAP were in communes with a particularly high share of ANCs. In the remaining communes with ANCs—27.0%, and in the communes without ANCs—3.9%. An important feature of organic farms from these communes is their average area of UAA, which is significant for the average national conditions. This situation is understandable, because to achieve satisfactory economic effects—due to the usually lower level of obtained production effects—they must have a larger UAA. The largest, in terms of the average area of UAA with organic production, were farms from communes with particularly high ANCs zone 1 (51.5 ha) and ANCs specific zone 1 (45.8 ha). Whereas the smallest were those of the communes with a particularly high saturation of ANCs mountains (26.1 ha), while their average UAA was still much larger in them than that of the total farms in these communes (by 401.9%).
It is a weakness of communes in the country, regardless of the quality of UAA, that they conduct organic production, often without livestock production, which is not in line with the idea of this production system [
75]. Especially in communes with ANCs, it is desirable to conduct animal husbandry, the appropriate scale of which prevents the loss of organic matter and nutrient deficiency in the soil, as well as impoverishment of permanent grasslands. The smallest share of farms with animals in the total number of organic farms was present in communes with a particularly high saturation of ANCs in total (26.0%), and the highest in communes with a particularly high saturation of ANCs mountains (83.2%). In communes without ANCs, it amounted to 22.6% (
Table 3).
In Poland, stringent regulations for keeping animals in organic farming are a significant barrier for many farmers in order not to keep them in this system, including in ANCs.
Organic farming is an important alternative to the conventional production in communes with ANCs. This situation is confirmed by the following figures in
Table 3. It turned out that in 2021, 97% of the total UAA with organic production supported under the current CAP was used in communes with ANCs, including in communes with a particularly high saturation of ANCs—71.6%. They accounted for 1.9–7.1% of the total UAA, while in communes without ANCs—0.7%. They were dominated by arable land, even though in communes with a particularly high ANCs mountains saturation, permanent grassland was also of great importance, the average share of it in the structure of UAA with organic production was 40% (
Table 3).
Organic farming develops better in ANC, which is mainly due to the limited natural possibilities of producing more intensively. It seems that, in these areas in comparison to other areas, organic production supported by subsidies under CAP 2014–2020 is a more attractive system of production.
In communes with ANCs, as compared to other communes, worse farming conditions are a significant constraint that farms must consider when making decisions related to the organization of the sowing structure. In communes with a particularly high saturation of ANCs zone 1 and 2, in total, and in the remaining ANCs, as compared to communes outside ANCs, the share of cereals in arable lands was higher. A different direction of this difference occurred in the case of communes with a particularly high share of ANCs specific zone 1, 2 and mountains, where their share in arable lands was lower than in communes without ANCs. From the point of view of soil protection, in the communes with ANCs, their important advantage was the greater share of structure-forming plants and grasses, which, out of all available groups of agricultural crops, can protect and increase the resources of organic matter in soils to the greatest extent. In turn, the poorer quality of their soils limited the importance of root crops and oilseeds (
Table 4).
Among communes with ANCs, the greatest degree of differentiation of plant species cultivated on arable lands (S-W index) occurred in communes with a particularly high proportion of ANCs zone 1 and ANCs in total. It is worth adding that it was also higher in them than in communes without ANCs, where one of the important reasons for the lower differentiation was probably the higher level of simplifications in plant production that could be used on better soils. An exceptionally low degree of differentiation of agricultural crop species also occurred in communes with a particularly large share of ANCs specific zone 2 and mountains, which is due not only to the presence of a large share of low-quality soils, which prevent the cultivation of many plant species with higher soil requirements, but also from unfavorable climatic conditions, as a result of which the growing season is significantly shortened (
Table 4).
4.4. Economic Situation of Farms from ANCs Compared to Other Farms in Poland
Based on the Polish FADN data from 2018–2020, the analyzed farms with dairy cows (TF-5) and mixed plant-animal production (TF-8) from ANCs, as compared to similar farms that operated in more favorable conditions, incurred lower total and direct costs per 1 ha of UAA. As a result, they also obtained lower land and labor productivity. Disproportions in this respect, to their disadvantage, were greater for mixed farms (
Table 6 and
Table 7).
For farms with ANCs, as put together with the compared farms, lower productivity of production factors was reflected in lower income per ha of UAA. For farms with dairy cows, it was lower from 5.1% to 22.5%, and for mixed farms, from 19.2% to 36.6%. At the same time, subsidies to operating activities received under the CAP 2014–2020, including those due to ANCs, reduced the differences. If they were deprived of the subsidies, the difference to the disadvantage of farms from the ANCs would be even greater. The same direction of differences occurred in five out of six analyzed subgroups of farms in the case of income per Family Work Unit (FWU). The income was higher only in farms with dairy cows with an economic size of 25–50 thousand euro SO with ANCs. It is worth noting, however, that regardless of the natural conditions of a farm with dairy cows with an economic size of more than 25 thousand euro SO and mixed with the size of more than 50 thousand euro SO could obtain income per FWU at a supra-parity level corresponding to the average annual salary in the national economy in the country. In Poland, in the years 2018–2020, this salary amounted to an average of 9.1 thousand euro [
77,
78] (
Table 6 and
Table 7).
In the case of Poland, in the analyzed farms from ANCs, as compared to similar farms from non ANCs, their generally worse economic situation limited the possibilities of investing financial resources in their own farms. The situation especially concerned farms with an economic size of at most 50 thousand euro SO, in which each time a negative net investment rate was found. Only on farms with dairy cows with an economic size greater than 50 thousand euro SO with ANCs, the scale of investments was greater than in the corresponding comparative farms (
Table 6 and
Table 7).
Table 6.
Characteristics of farms from ANCs in Poland based on the Polish FADN data in 2018–2020.
Table 6.
Characteristics of farms from ANCs in Poland based on the Polish FADN data in 2018–2020.
Variable | Farms from ANCs: |
---|
With Dairy Cows: | Mixed: |
---|
Up to 25 Thous. Euro SO | (25–50 > Thous. Euro SO | Over 50 Thous. Euro SO | Up to 25 Thous. Euro SO | (25–50 > Thous. Euro SO | Over 50 Thous. Euro SO |
---|
Number of farms | 187 | 490 | 792 | 711 | 406 | 402 |
Total costs (euro/ha) | 1106.5 | 1329.9 | 1779.6 | 1072.2 | 1230.1 | 1449.3 |
Direct costs (euro/ha) | 458.1 | 649.1 | 950.7 | 486.1 | 655.1 | 872.0 |
Land productivity (euro/ha) | 1280.3 | 1780.1 | 2565.5 | 1082.2 | 1312.7 | 1657.9 |
Labor productivity (euro thousand /AWU) | 9.4 | 20.5 | 51.0 | 9.4 | 20.3 | 45.3 |
Income (euro/ha) | 545.8 | 866.9 | 1167.4 | 335.2 | 453.2 | 573.4 |
Income less subsidies (euro/ha) | 137.0 | 439.6 | 797.5 | −40.0 | 66.9 | 211.3 |
Income (euro thousands/FWU) | 4.1 | 10.1 | 24.6 | 3.2 | 7.1 | 17.2 |
Net investment rate (%) | −57.3 | −12.4 | 73.4 | −24.4 | −7.5 | 17.0 |
Table 7.
Characteristics of farms without ANCs in Poland based on the Polish FADN data in 2018–2020.
Table 7.
Characteristics of farms without ANCs in Poland based on the Polish FADN data in 2018–2020.
Variable | Farms without ANCs: |
---|
With Dairy Cows: | Mixed: |
---|
Up to 25 Thous. Euro SO | (25–50 > Thous. Euro SO | Over 50 Thous. Euro SO | Up to 25 Thous. Euro SO | (25–50 > Thous. Euro SO | Over 50 Thous. Euro SO |
---|
Number of farms | 57 | 154 | 235 | 298 | 295 | 337 |
Total costs (euro/ha) | 1162.5 | 1596.7 | 2047.5 | 1275.2 | 1409.9 | 1636.3 |
Direct costs (euro/ha) | 513.6 | 813.0 | 1156.3 | 601.2 | 780.3 | 981.5 |
Land productivity (euro/ha) | 1500.5 | 2129.3 | 2966.0 | 1539.8 | 1661.1 | 2006.7 |
Labor productivity (euro thousands/AWU) | 9.9 | 22.5 | 56.1 | 11.8 | 22.7 | 54.7 |
Income (euro/ha) | 704.2 | 913.2 | 1265.3 | 528.5 | 586.8 | 709.3 |
Income less subsidies (euro/ha) | 310.9 | 515.3 | 919.7 | 217.8 | 231.9 | 364.4 |
Income (euro thousands/FWU) | 4.4 | 9.8 | 26.5 | 3.8 | 8.2 | 21.4 |
Net investment rate (%) | −36.7 | 1.6 | 30.9 | −23.4 | 43.3 | 37.8 |