Investing in agriculture: structural and financial determinants of farminvestment activity in Poland

Aim: This study investigates the structural and financial determinants of investment activity among Polish farms, focusing on investment propensity, planned investments, and innovative investment initiatives. Methods: The study draws on data collected through a nationally representative CATI survey of 800 farm owners or co-owners and was conducted between the end of 2024 and the beginning of 2025. Using logistic regression models, we identify key predictors of past investments, future investment plans, and the innovativeness of recent investments. Results: Results highlight the significant role of farm size, financial condition, prior investment activity, and usage of external funding in shaping investment decisions. Regional disparities and production type (plant vs. animal) also affect investment propensity and innovation adoption. Farms that applied for funding, regardless of the outcome of the process, were more likely to invest, suggesting that strategic planning itself correlates with investment activity. Conclusions: The research findings contribute to the literature on agricultural modernization and provide practical recommendations for policymakers seeking to promote the development of rural areas through targeted investment support. The agricultural sector in Poland is undergoing a significant transformation driven by the implementation of environmental regulations, ESG frameworks, and the shift toward sustainable production. These changes require not only financial capital but also adaptability, strategic planning, and institutional support to ensure balanced and inclusive development. Targeted policies dedicated to small and medium-sized farms, particularly those operating in disadvantaged regions and with limited access to capital, are essential to strengthen their productivity and competitiveness. Enhancing education and advisory services could help farmers develop more effective investment strategies and better access funding opportunities, especially in areas with lower levels of investment activity.