PROFITABILITY OF MATERIAL FACTORS OF PRODUCTION IN MILK PRODUCING FARMS IN THE YEARS 2004-2006
Abstract
The article was written to analyse the profitability of material factors of production in Polish milk farms. The data used to construct the model were taken from the panel 291 farms which keep accounts for Polish FADN in the years 2004-2006. For the purposes of this analysis econometrics model in the form of function Coubb-Douglas was used. The results indicate unambiguously the profitability of expanding land resources, especially with the use of tenancy. The increase in capital of mentioned farms occurred to be profitable as well. The possibility of increasing labour resources should be regarded as limited, chiefly, for the sake of differences between their profitability and the real cost of acquisition.
Keywords
milk farm; profitability; labour; land; capital
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