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Investment in agriculture is related to modernization and technological upgrading of agricultural holdings and it influences all the aspects of functioning of farms. Numerous studies proof that investment plays a key role in improving farms’ competitiveness and increases their resilience to changes in surrounding. The aim of the paper is to analyze the investment behavior of the Polish farmers. The study was conducted on the basis of the Polish Farm Accountancy Data Network data for the period 2009-2015 and it applies a logistic regression model. The results indicate that eight variables have a statistically significant impact on investment. These are: share of the land leased by the farmer under a lease contract for a period of at least 1 year in the total agricultural land, land yield indicator, land productivity index, education of the person managing the farm, quality of utilized agricultural area, production type, debt capital ratio and return on equity. Following the results, it can be stated that policy support needs to concentrate on smaller farms which lack resources to conduct investment necessary for the improvement of their competitiveness.

Investment behavior of the Polish farms – is there any evidence for the necessity of policy changes?