Microeconomic Determinants of the Financial Situation of Polish Farm Households

This article aims to identify the microeconomic factors shaping the financial situation of Polish households dependent on agriculture. The study employed a research methodology that combined microdata from the 2022 household budget survey conducted by the CSO with advanced statistical techniques, particularly structural equation modelling (SEM). This approach enabled the simultaneous examination of relationships between demographic and economic factors, as well as subjective assessments of well-being. The study assumed that a household’s financial situation is determined not only by its income level but also by how that income is used, its saving capacity, and its level of indebtedness. A latent variable describing subjective assessments of the financial situation was constructed using four indicators: overall financial evaluation, money management, debt level, and saving ability. The results confirmed that these elements together provide a coherent picture of financial well-being. Two of them proved particularly important: skilful budget management and the ability to save for the future. The structural model showed that having more family members significantly lowers the assessment of the financial situation; in other words, the larger the household, the more likely it is to perceive its financial possibilities as limited. The opposite relationship was found for the biological type of household. Income diversification had no direct impact on self-assessment, suggesting that its role may be indirect, for example by enhancing financial security or reducing debt. The results indicate that the financial situation of agricultural households is influenced by a combination of economic and sociodemographic factors. A sense of financial security is shaped not only by income level but also by the number of dependents, family stability, and the ability to manage resources. The conclusions of the study may inform the design of public policies aimed at strengthening the financial stability and resilience of Polish households dependent on agriculture.