THE INFLUENCE OF AREA PAYMENTS ON THE PRICES OF FARMLAND IN POLAND

Abstract

The aim of the study was to determine the influence of area payments on the prices of farmland in Poland with a case study of the single area payment. Empirical research was carried out with econometric methods (analysis of the trend function and regression analysis). The research showed that Poland's accession to the European Union and the adoption of the Common Agricultural Policy, which provides relatively strong financial support to the agricultural activity, caused changes in the development tendency of farmland prices. Their trend shifted from being almost horizontal to a rapid growth. The research led to the general conclusion that area payments exhibited a strong tendency to capitalise in the price of farmland, and the capitalisation largely explained the rapid increase in the prices of farmland in Poland after its joining the European Union.