Assessment of the profitability of winter wheat and spring barley production under different market conditions

Abstract

The paper examines the profitability of winter wheat and spring barley production under various market conditions. This is a case study of an agricultural holding in Lublin voivodeship that specialises in cereal growing, among other activities.  Our study spanned from 2021 to 2023. It showed that Polish cereal producers were negatively impacted in their final year due to the influx of cereal grains from Ukraine. Without subsidies, the farmer would have incurred a loss of –1828,2 PLNꞏha^–1 from growing winter wheat and –666,2 PLNꞏha^–1 from spring barley in 2023. A comparison of profitability between winter wheat and spring barley production illustrated an explicit advantage of the former cereal during the first two years under review. In the final year, barley was more profitable due to reduced production costs. On the basis of the research carried out and the analysis of the market situation in recent years, a recommendation was made to farmers. In the process of making production decisions, it is necessary to use information on market trends in the price formation of agricultural products and inputs.