Agriculture in Poland - Private and State Farms

Private and State Farms

In 1987 about 2.7 million private farms were in operation. About 57 percent of these were smaller than five hectares. Of the remaining farms, 25 percent were between five and ten hectares and 11 percent were between ten and fifteen hectares. Only 7 percent of private farms were larger than fifteen hectares. Whereas the majority of the private farms were below optimum size, the majority of state farms were excessively large. Only 12 percent of the latter farms were below 200 hectares, and 60 percent were larger than 1,000 hectares.

In 1989 the private sector cultivated 76.2 percent of arable land and provided 79 percent of gross agricultural production. State farms, the main institutional form in state ownership, cultivated 18.8 percent of the total arable land and produced 17.0 percent of gross output. Cooperative farms, the dominant form of state agricultural organization in other East European economies, were not important in Poland. In 1989 they cultivated only 3.8 percent of arable land and contributed 3.9 percent of gross production.

In the 1980s, grain yields and meat output per hectare were higher in the socialist sector than in the private sector. An important factor in this difference was the more intensive use of fertilizers in state farms. On the other hand, the milk yield per cow was higher in the private sector. From the standpoint of overall performance, the private sector was less material and capital-intensive, and gross production per hectare and the value of product per unit of cost were higher in that sector. Besides being more efficient, private farms were also more flexible in adjusting production to obtain a higher product value.