STATE-OWNED FARMS IN THE PROCESS OF SYSTEMIC TRANSFORMATION

The systemic transformations which were undertaken and are still under way in Polish agriculture are rather specific in that, compared with other post-communist countries, the structure of our agriculture has been predominantly private, with a significant proportion of state-owned farms and very few farming co-operatives. Hence the sector structure of agriculture in Poland did not necessitate rapid privatisation. Neither did the situation on the farm produce market (surplus supply), the land market (negligible demand) or the capital market (lack of capital in private farming and difficulties in its accession). Despite these adverse circumstances, state-owned farms were swiftly privatised. By means of one authoritative, legal-administrative act, all state-owned farms were liquidated and their assets and effects were transferred to the private sector where they were to enlarge and reinforce family-owned farms. Whether or not this was a wise decision is still the object of debate. Experience has shown that, despite the considerable economic and social costs of this transfer, the assumed and debatable goals have not been achieved. Although liquidation of state-owned farms and disposal of their farmland has enlarged the private sector in Polish agriculture, it has not (as was to be predicted) seriously improved the structure of small-producers' peasant husbandry. The most important objective guiding the decision to liquidate state-owned farms has not been met. These farms are a declining form of husbandry. Yet they compare favourably with most private farms, which only goes to prove that privatisation alone does not lead to the emergence of a new quality, i.e., economic effectiveness.