Energy Costs and the Financial Situation of Farms in the European Union

Within the energy system, agriculture represents a distinct sector, as it functions both as a consumer of energy derived from fossil fuels and renewable sources and as a producer of renewable energy. Since energy consumption is closely linked to production intensity and cost efficiency, energy costs have a direct impact on farm profitability and financial stability. The aim of the study is to analyze and assess the relationships between energy costs and the financial situation of farms in Poland in comparison to the European Union average, based on data from the Farm Accountancy Data Network (FADN) and its successor, the Farm Sustainability Data Network (FSDN), covering the years 2014–2023. The study focuses on differences in the structure and burden of energy costs and their implications for the economic performance and financial resilience of agricultural holdings. The comparative analysis revealed that farms in Poland are characterized by a higher share of energy costs in total production costs and a higher ratio of energy costs to total income compared to the EU average, indicating lower financial resilience to energy price volatility. These findings suggest that measures aimed at improving energy efficiency, supporting technological modernization, and encouraging the adoption of on-farm renewable energy could strengthen the long-term stability and competitiveness of Polish agriculture.