Productivity of Production Factors in Polish Agriculture and in The Selected European Union Countries with Regard to The Common Agricultural Policy Payments

The aim of the paper is to analyze the productivity of production factors ofPolish and selected EU farms from 2004 to 2017, taking into account the CommonAgricultural Policy (CAP) payments, based on the literature. In the postaccessionperiod, there was a marked increase in the efficiency of productionfactors on Polish farms. The average land, labor, and capital productivity indicesfrom 2004 to 2017 were EUR 442.89/ha, EUR 4,774.35/AWU, and EUR 0.25/EUR 1, respectively. In 2014, land productivity increased to EUR 1,591.3/haand labor productivity to EUR 11,800/AWU, amounting to 68.8% and 28.6%of the EU-28 average, respectively, while capital productivity was higher (EUR1.41/EUR 1) compared to the EU-28 average (EUR 1.29/EUR 1). The share ofCAP payments in the income of the Polish farms in 2014 increased to 49.5%;however, this was still below the EU-28 average (61.1%). Regardless of the factthat the total factor productivity (TFP) remains lower in comparison to other EUcountries, the increased efficiency of Polish farms in the post-accession periodshould be considered as significant