Are Farms Located in Less-Favoured Areas Financially Sustainable? Empirical Evidence from Polish Farm Households

The topic of farms that deal with environmental constraints is an ongoing agricultural policy issue, including within the Common Agricultural Policy. We propose empirical evidence based on a sample Farm Accountancy Data Network (FADN) farm households, evaluate influence chosen factors financially sustainable development and verify less-favoured area (LFA) farms’ growth compared non-LFA households. To specify we use Sustainable Growth Challenge (SGC) model DuPont decomposition financial measures indicators were adopted from corporate finance. It concluded differences in SGC revenue values between LFA mainly results system subsidising receive compensation for farming areas adverse conditions. Generally, impact policies significant may weaken effect LFA. With exception education, other sociodemographic do not highly efficiency. Along improvements quality human capital (e.g., higher education level), awareness subsidies, debt innovative solutions increases. interest precision agriculture 4.0 also growing, which directly translates into better technological efficiency farms.