Soil Quality versus the Economic Results of Farms Specializing in Milk Production – Case Study of Poland
Purpose: Poland’s geographic position provides favourable natural conditions for cattle farming and milk production. The aim of this paper is to highlight differences in agricultural in-come levels and remuneration rates for own labour of farmers and their family members across farms with varying quantities and qualities of agricultural land. Design/Methodology/Approach: A detailed analysis was conducted on the economic performance of 1,688 commercial farms that continuously maintained accounts of their agricultural activities from 2005 to 2022 for the purposes of the FADN system. Findings: The study confirmed that farmers operating lower-quality farmland were more likely to specialize in milk production. At the same time, despite the relatively poorer quality of the land used, farms specializing in milk production achieved higher gross value added per unit of area, higher farm income, and greater potential remuneration for own labour compared to other farms. Practical Implications: This pattern economically justifies the continued expansion of farm size and production concentration. The analysis results demonstrate that milk production can be a viable alternative to other agricultural activities, particularly in regions with lower soil quality. Originality/Value: The analysis results demonstrate that milk production can be a viable alternative to other agricultural activities, particularly in regions with lower soil quality.