The Impact of the Price Factor on Farmers' Incomes in Turbulent Conditions

Stefaniia BelinskaPeter BielikYanina Belinska

DOI 10.7160/aol.2023.150302
No 3/2023, September
pp. 15-24

Belinska, S., Bielik, P. and Belinska, Y. (2023) "The Impact of the Price Factor on Farmers' Incomes in Turbulent Conditions", AGRIS online Papers in Economics and Informatics, Vol. 15, No. 3, pp. 15-24. ISSN 1804-1930. DOI 10.7160/aol.2023.150302.

Abstract

Farmers face various types of risks that affect their behavioural strategies and well-being. In 2022, the main problem was the rapid and uncontrolled acceleration of inflation in the markets of raw materials, energy and food products. Farmers have faced price volatility in food, raw materials and energy. The purpose of the article was to analyse the impact of the price factor on farmers' incomes, including the total impact of prices on manufactured products and energy carriers. The regression-based analysis showed the negative nature of such an impact, which requires increased state support for farm income during the crisis period. As a result of the study, we proposed to reorient government support from simple subsidies to incentives for farmers to produce bioenergy from waste. This measure will increase farmers' energy independence, reduce income dependence on rising energy prices, and increase the efficiency of public spending.

Keywords

Bioenergy, energy independence, energy prices, farm income, governmental support, inflation, price shocks, price volatility, the price of agricultural products.

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