The Importance and determinants of cooperation between fruit farms and the institutional environment

Abstract

The development of farms requires support from the institutional environment of agriculture. Institutions help introduce innovations and adapt their functioning to the requirements of the European Union. The aim of the research was to determine the factors affecting the cooperation of orchard farms with the institutional environment and the economic effects of this cooperation. The article's novelty answers two questions: what factors on the farm affect cooperation with the institutional environment, and whether such cooperation affects the economic results of orchard farms? The study covered 45 farms from the Małopolska and Pogórze Region in Poland, specializing in cultivating fruit trees and shrubs, which in 2018 kept accounts under the Farm Accountancy Data Network (FADN). The descriptive method, chi-square test, and Spearman's rank correlation coefficient were used in the data analysis. An original relationship index was used to assess fruit producers' cooperation with agricultural organizations. A backward stepwise multiple regression model was used to identify the factors influencing its level. The research showed a statistically significant relationship between the relationship index with the organization and utilized agriculture area, total workload, the value of subsidies to operating activities, direct costs, and the farmer's age. The regression model shows that the value of subsidies to operating activities explains 28.09% of the variability of the relationship index (R_i). Based on the analysis, it can be concluded that the cooperation of fruit producers with the institutional environment positively impacts orchard farms' economic and financial results.