Production and income situation in Polish agriculture after accession to the European Union

Production and income situation in Polish agriculture after accession to the European Union The aim of the paper is to assess the changes in the volume of production, agricultural income, productivity of resources and foreign trade in agri-food products in Poland after accession to the European Union in relation to the pre-accession period. The process of Poland's integration with the European Union has had a positive effect on an increase in the volume of agricultural output and income. The growth of income of the agricultural sector would not have been possible without a significant increase in the level of CAP subsidies, as well as increase in demand for Polish agri-food products and parallel increase in agricultural prices. Significant improvement in production and economic situation of Polish agricultural sector resulted in developing of a group about 75-80 thousand farms that gain more than parity income level and make net investment. This group indicate the direction of changes of Polish agricultural sector but it is only 3 per cent of all agricultural farms in Poland. The problem of Polish agriculture is a very low labour productivity, that in 2008 was 3.5 times lower than in the EU-27. After Poland's joining to the Single European Market, the significance of the EU countries in Polish foreign trade in agri-food products increased. The share of the EU countries in Polish agri-food export rose from 51 per cent in the year preceding Poland's accession to the EU to 80% in 2009. Import of agri-food products from the EU reached 70 per cent of total Polish import of this product group. It can be said that in addition to increase in the volume of agricultural income, multiplying the share in the Single European Market was the positive effect of Poland's membership in the EU.