ECONOMIC-REFORM, THE FREE MARKET AND AGRICULTURE IN POLAND

The paper examines the effects on Poland's agriculture of economic reform and the introduction of a free market, following the Stabilization Programme of January, 1990. It was hoped, after stopping hyperinflation, that price equilibrium and greater productive efficiency in farming would be achieved, but the evidence suggests that farming costs rose rapidly while produce prices rose slowly. Farm household incomes, in 1990, were only maintained by reduced inputs to agricultural production or by earnings from non-farm activities. Examination of market prices, plus field enquiry suggest that removing controls and subsidies from the produce markets has resulted in low prices and sales uncertainty. Without greater confidence in produce markets, investment in agriculture will continue to be low.