Funding agricultural holdings' investment projects: focus on subsidies

摘要

The aim of the article is to compare the effects of different fixed asset funding options for agricultural holdings.Funding investment projects with subsidies (measure 1.1.1 Modernisation of agricultural holdings – axis I of theRural Development Programme), bank loans and leases are simulated and compared in terms of the share offunding costs relative to the total amount of money received. This share in most cases enables the farmer tounambiguously choose the fixed asset funding option. However, in the case of older farmers in more favourableareas, the decision is not clear, as the share is the same for three-year bank loans and leases with a three-yearpayback period.