Inequality of Income in Agricultural Holdings in Poland in the Context of Sustainable Agricultural Development

Abstract

The study investigates the redistributive effects of agricultural policy and the importance of income inequalities among agricultural holdings for sustainable agricultural development based on the intra-sectoral differences of the disposable income of farmer households and the income from family agricultural holdings in Poland in the years 2004–2018. The problem of excessive and growing income inequalities in agriculture has been recognized as an important barrier to the sustainable development of agriculture in Poland. The aim of the study is to establish a relationship between the process of income polarization in agriculture and the process of concentration of production factors in this sector, and the level of budget support. The Gini coefficient, concentration index, and multivariate regression analysis were used as research methods. It was shown that the process of the concentration of land and capital has led to an increase in income disparities in this sector. Budgetary expenditure directed to the sector in the form of subsidies supporting farmer incomes was not able to reverse the process of income polarization, but mitigated the growing inequalities (reducing the scale of income spreads).