Fiscal and Parafiscal Burden of Polish Farms vs. Farm Net Income and Cash Flow

Annotation: The paper presents the significance of the system of fiscal and parafiscal burden from the perspective of an ability of agricultural holdings in Poland to generate positive farm net income and cash flows. The following hypothesis was verified: the level and the type of current fiscal and parafiscal burden are not a significant impediment to generate positive farm net income and cash flows. In order to achieve the main objective of the paper three tasks were carried out: (i) presenting the system of fiscal (including so called "agricultural" tax and income tax from the special agricultural sectors) and parafiscal (mainly, social security contribution for the Agricultural Social Insurance Fund - KRUS) in Polish agriculture; (ii) analysis of the level of fiscal and parafiscal burden, given the type of farms; (iii) analysis of dependencies between the level of fiscal and parafiscal levies, farm net income, as well as cash flow. The statistical data, (collected by PL-FADN System) was treated as the main source of the secondary data. The research period covered the years 2007-2011. The research objects for statistical analysis included agricultural holdings representing the mixed production from 2010 and 2011. The following methods were used: literature overview, analysis of financial reporting, statistical analysis as well. Farm representing the type "fieldcrops" were strongly burdened with fiscal levies, whereas the level of parafiscal levies in households specialising in animal production was the highest.