What determines the capital structure of farms? Empirical evidence from Poland

The purpose of this paper is to analyse capital structure and its dynamics for farms in Poland, a leading European Union producer. theoretical framework based on the trade-off pecking order theories structure. We use data from Farm Accountancy Data Network (FADN), which representative Polish professional during period 2009–2018. adopt dynamic partial adjustment model using generalized method moments explain financing through debt. results show that exhibit low target levels debt, they adjust dynamically, thus partially validating theory. While size growth opportunities positively influence indebtedness farms, profitability land have opposite effect. farmers therefore available internal funds, especially retained earnings, as substitute line with