pobierz - Wydział Nauk Ekonomicznych SGGW w Warszawie

ResultsTaking into account the comparison of quantile charts for profit per hectare and profitwithout subsidies per hectare (chart 1), it can be stated that even with subsidies up to35% of businesses over the years 1993 to 2008 did not achieve positive earnings – profitand without subsidies up to 95% of enterprises. It is possible to conclude that thesubsidies are for long-term viability of farms an important source of funding. Is itpossible to discuss what would change if the farms did not receive subsidies, how wouldbe the development of agricultural commodity prices. Such a question is relevant only inthe case that subsidies would be cancelled in all countries, within the EU and alsoworldwide. The current situation shows that for long-term survival of enterprises inagriculture there is a need of government funds.Chart 1Quantile chart –Profit/hectare of agricultural land (Profit-subsidies)/hectare of agriculturallandSource: own calculationThe quantile chart shows the variable profit per hectare significantly breaks in the value0. The quantile chart also shows that 25% of enterprises had the value of this variablefrom 0 to 400 SKK (0-13,28EUR) per hectare throughout the reporting preiod. From theabove it can be concluded that there is strong motivation to achieve a low profit andprobably by using accounting operations, the enterprises try to optimize the income tax.Reason for this conclusion is the comparison of cumulative probability of profit/hectareand (profit-subsidies)/hectare. By excluding the subsidies the chart is harmonic whichmeans that subsidies cause the disharmonic chart on the left. And that is irrational.Therefore the disharmony is caused by the tax dimension of economic result – profit orloss.Previous quantile chart 1 does not evaluate the development of indicators over time. Thisview can be found in tables 1 and 2 and also in subsequent charts. The first tablecontains the descriptive characteristics of the variable profit per hectare of agriculturalland.210