Sources of income of cooperative farms

Most cooperative farms carry out diversified activity in the field of production and services of agricultural and non-agricultural character. The aim of the article is to determine income functions of various sectors and to determine their profitability. Research was based on the study of about 100 cooperative farms in Poznań province. The following sectors have been distinguished: agricultural production, divided into stock and vegetable production, agricultural processing, services and the remaining production. Economic effects have been presented by means of three income categories: farm income, gross income and net income. Costs for respective sectors were calculated on the basis of the accounting system in force in cooperative farms. Profitability of particular sectors was calculated by comparing costs and income. The analysis shows that the profitability of, production in cooperative farms and in their separate sectors was subject to annual variations. Thus, the income function of separate sectors was also subject to annual changes. However, one may state with certainty that non-agricultural sectors are more significant providers of income in cooperative farms than in other branches of agriculture. Besides, non-agricultural sectors showed usually higher profitability than agricultural production sector. However, vast differences appeared within agricultural production. Vegetable production was always profitable and brought high income, whereas stock production was characterized by low profitability and in some years was even unprofitable. Thus, finding a solution for the problem of low efficiency of stock production is of vital importance for cooperative farms. The article proves that efficiency of agricultural activity is to a great extent determined by the structure of production.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201