The Impact of Price Volatility of Agricultural Commodities in Poland on Alternative Incomes of Conventional, Ecological and Agritourism Farms

The objective of this paper is to recognize price volatility of main commodities and to measure the impact of price level on agricultural incomes of farms and the number of farms having alternative income sources. First we focused on price volatility changes in the European Union and Poland. Economic and econometric analysis tools were used to measure the impact of the price volatility. We collected observations from the Ministry of Agriculture and Rural Development in Poland. The analysis found big differences in price volatility for Polish commodities. The price volatility was connected with the global crisis. The Polish agricultural sector faced global problems, but could not fully overcome them. The rise of agricultural commodity prices created market problems such as increased bread and food prices. Polish consumers adjusted their purchases and their expenditures on food. This situation is common for many EU states and the price volatility can be reduced only through the Common Agricultural Policy. Poland’s markets are global and stabilization is achievable only by active EU rural policy.