Diversity of Farm Indebtedness in Latvia and Poland: a Comparative Study

Valda Bratka, Arturs Praulinš

Bratka, Valda
Praulinš, Arturs
Diversity of Farm Indebtedness in Latvia and Poland: a Comparative Study
Scientific Journal Warsaw University of Life Sciences SGGW - Problems of World Agriculture, 2009, vol.6(21), nr , s. 10-25

Key words

debt liabilities Latvian farms Polish farms comparative analysis

Abstract

The use of borrowed capital in Latvian agricultural holdings of different economic size and type of farming is analyzed, as well as a comparative analysis with Polish agricultural holdings is performed, defining essential specificities of financing activities with equity or loan in each state. The liabilities burden in Latvian field crop and dairy farms is calculated and discussed in detail. For the assessment ratio of the statistical significance of differences between Latvian and Polish agricultural holdings the debt-to-equity and total liabilities per ESU, per 1 ha UAA and 1 LU, a statistical testing is carried out and main conclusions about an impact of the type of farming, the economic size and the chronological factor are formulated.