Debt as a Source of Financial Energy of the Farm—What Causes the Use of External Capital in Financing Agricultural Activity? A Model Approach

The aim of this study was to identify and assess the factors influencing increase in financial energy a farm through use external capital, taking into account farmer’s characteristics. For its implementation, logistic regression model classification-regression tree analysis (CRT) were used. conducted on group farms Central Pomerania (Poland) participating system collecting using data from (Farm Accountancy Data Network—FADN). 348 used for analyses, obtained survey 2020 with questionnaire. Based research results presented literature date, it established that capital as factor increasing is determined, one hand, by socio-demographic characteristics farmer farm, other availability financing sources. Factors relating first these aspects taken study. Using model, propensity indebtedness promoted following factors: gender head household (male, GEND), younger age (AGE), having successor who will take over future (SUC), higher value generated production (PROD_VALUE), larger area (AREA) multi-directional (production diversification), opposed targeting plant or animal only (farm specialization—SPEC). carried out classification trees showed key outside source agricultural process are, all, features an holding: direction (SPEC). manager (AGE) turned be importance among favoring tendency debt order finance activity.