Energy Efficiency in Polish Farms

Abstract

Agriculture in Poland plays an important social and environmental role. Accession to the EU resulted in structural and modernization changes, following adjustments to CAP obligations. In 2019, the European Green Deal and “From Farm to Fork” strategies called for circularity, zero emissions, and food and energy security. The purpose of this study was to assess the consumption and energy efficiency of Polish farms, identify challenges in energy management, and formulate recommendations. This study used data from Polish Statistics, FADN, and other public bodies collecting relevant data. The assessment of energy intensity was carried out based on the concept of technical efficiency by Farell and Debreu, defined as the ratio of effects to inputs. In addition, methods of comparative and descriptive statistics were used. The average annual dynamics of energy consumption and CO₂ emissions were determined using the compound percentage formula. The results of this research indicate positive changes in the energy management in Polish agriculture, including a decrease in production energy intensity, CO₂ emissions, and the amount of waste generated by the investments made. It is necessary to improve farm energy efficiency further and to increase the use of renewable energy to maintain cost competitiveness and meet environmental requirements.

1. Introduction

Agriculture in Poland after accession to the European Union (EU) underwent a process of structural change and modernization, which has not yet been completed, and this is indicated by the fragmented structure of the agricultural holdings. According to the Agricultural Census 2020, there were still about 1.3 million agricultural holdings in that year, of which about 74% had less than 10 ha of agricultural land [1]. This is also confirmed by the results of the IAFE-NRI research, showing that a small number of agricultural holdings sell products through market channels, and a relatively small part of the rural population earns their living exclusively from work in agriculture [2,3]. Therefore, Polish agriculture still faces numerous challenges related to structural change and modernization, including sustainable rural development [4]. The main determinants of the adjustment processes in agriculture so far have been successive reforms of the Common Agricultural Policy (CAP), which resulted in the reduction of direct market support in favor of farm income support and rural development [5]. CAP reforms in the future will increasingly focus on environmental issues, the main reason being long-term adverse climate changes. A precursor to these changes is the European Green Deal strategy [6], of which “Farm to fork” [7] and the “Biodiversity strategy for 2030” are the main elements in terms of agricultural policy. The COVID-19 pandemic and the war in Ukraine have resulted in energy and food security threats in many regions of the world [8,9,10]. This has been reflected in significant volatility in global energy and agricultural commodity prices [11,12], resulting in increasing production and trade risks. Consequently, ensuring energy and food security has become a key challenge for the global economy in the 21st century under conditions of limited natural resources and water, projected population growth, and migration crises [13]. This problem also concerns Poland being a large producer and exporter of food products in Europe [14]. The new strategy for economic development in the EU, including the agricultural sector, points to the need to implement sustainable food systems involving all links in the supply chain. The essence of the proposed measures is to move away from the principle of profit maximization and towards the rational use of natural resources, limiting the negative externalities of economic activity. Therefore, it is considered necessary to pioneer a circular economy model, which will reduce energy and water consumption, as well as air and soil pollution, and will use waste as raw materials in subsequent manufacturing processes [15,16]. In previous decades, there was a noted increase in energy consumption in Polish agriculture [17].

The problem of the energy efficiency of Polish agriculture has not been studied in recent years. Therefore, it is very important to analyze this issue given the challenges faced by the agricultural sector in relation to cost efficiency and the environmental footprint. Thus, the main objectives and original contributions of the article are to identify current challenges in energy management in Polish agriculture, to assess the level of energy consumption and efficiency in the basic types of productive farms, and to formulate conclusions and recommendations for adaptation to the new conditions.

In the initial part of the paper, the research methods and empirical data used are dis-cussed. In the next section, the main assumptions and objectives of the CAP are presented, with a particular focus on energy management measures in agriculture. Section 3 focusses on identifying the challenges faced by the Polish agriculture in relation to energy management. Theoretical issues concerning energy management are discussed in the following section. Energy management in Polish agriculture is characterized in detail in Section 5, emphasizing that food production is strongly dependent on energy consumption. Among other things, the consumption of energy in the form of raw materials, gas emissions, and the course of modernization processes in energy management are presented. In Section 6, energy management in Polish agriculture is analyzed. This analysis is based on the secondary publicly available data gathered by different public bodies as well as on the unpublished data collected within the Polish Farm Accountancy Data Network (Polish FADN). The analysis shows large variations in the use of basic energy carriers and energy intensity in the individual production types of various farms. Section 5 and Section 6 are related to the study’s objective of assessing energy consumption and its efficiency in Polish agriculture. This study ends with a summary of its conclusions, which is an attempt to assess the opportunities and challenges in the field of adjustment processes in Polish agriculture. The last section of the paper relates to the study’s objective of formulating policy recommendations.

2. Materials and Methods

Descriptive and comparative statistical methods were used in the study of energy consumption in Polish agriculture [18,19]. The annual average dynamics (r) of consumption with respect to individual energy carriers and CO₂ emissions were determined using the compound percentage Formula (1) [20,21]:

$$\begin{gathered} U_n=U_{n_0}{\left(1+{\displaystyle \frac{r}{100}}\right)}^{n-1}, \\ r=\left(\sqrt[n-1]{{\displaystyle \frac{U_n}{U_{n_0}}}}-1\right)·100, \end{gathered}$$

(1)

where

• U_n0—value of the variable in the initial period (in the first year, n0);
• U_n—value of the variable in the final period (in year n);
• r—growth rate (average annual dynamics in %).

An assessment of the energy intensity of production in agriculture was carried out based on the technical efficiency concept of M.J. Farell and G. Debreu, which is defined as the ratio of outputs to inputs [22,23]. The energy intensity of production EC_i in mathematical terms is the inverse of its technical efficiency TEi. Accordingly, the energy intensity of production is the ratio of the value of the energy input I_i to the value of the output O_i, and this makes it possible to evaluate the energy input required to produce a unit of specific products (2):

$$\begin{gathered} {EC}_i={\displaystyle \frac{I_i}{O_i}}\mathrm{i}, \\ {TE}_i={\displaystyle \frac{1}{{EC}_i}}={\displaystyle \frac{O_i}{I_i}}, \end{gathered}$$

(2)

where

• EC_i—energy intensity of production;
• TE_i—technical energy efficiency;
• O_i—production of i product;
• I_i—input of i energy carriers.

The empirical dataset consisted of annual data on the consumption of individual energy resources and CO₂ emissions in Polish agriculture, which are published by Statistics Poland [24] and the National Centre for Emissions Management [25], while the data on the production and use of energy from renewable sources were provided by Statistics Poland [26], the Energy Regulatory Office [27], the National Support Centre for Agriculture [28], and the Institute for Renewable Energy [29]. Unpublished empirical data from the Polish FADN [30] were used to assess energy management in the main selected farm types. The time span of the empirical data was determined by their availability and covered the period 2004–2021. The analyses conducted on the basis of the empirical data were supplemented by a literature review [31].

3. Assumptions and Objectives of the Energy Transition in the European Union

The transformation of the energy economy in the EU is a fundamental element of the climate policy that is being pursued due to ongoing adverse climate change. Energy transition is defined as a long-term process of restructuring and modernizing economies and energy networks towards sustainable systems that are less dependent on fossil fuels and more energy efficient [32] and, consequently, less damaging to the climate, the environment, and public health [33]. The first EU energy and climate package was adopted in 2007. It aimed to reduce greenhouse gas (GHG) emissions by 20% by 2020 relative to 1990, to increase the share of renewable energy sources (RES) in energy consumption by 20%, and to improve energy efficiency, also by 20%, relative to 2005 [34]. The above-mentioned energy policy targets have been modified several times as they were considered insufficient in the context of advancing climate change [35]. In 2019, the European Commission (EC) presented a comprehensive climate policy and energy transition strategy, the “European Green Deal”. It aimed to update the listed targets by 2030, including an increase in the share of RES in energy consumption to 32% and an improvement in energy efficiency by 32.5% [6]. In 2021, the “Fit For 55” legislative package was presented. It sets ambitious targets to be met by 2030, including a 55% reduction in GHG emissions and energy neutrality for the EU economy by 2050 [36].

Achieving the strategic goals of climate policy and energy transition in the EU requires numerous actions in all sectors of the economy through the development of effective Europe-wide instruments. In the agri-food sector, CAP reform will be a key area for action, with the “Farm to Fork” strategy as the cornerstone. The main objective of the strategy is to build a sustainable food chain that works for producers, consumers, the climate, and the environment. The strategy also defines ambitious specific objectives that relate to the sustainable production and industrial processing of agricultural raw materials, the management of natural resources and climate protection, and the fair distribution of profits among market participants, the guarantees of food security and sustainable consumption, and the reduction of food waste [7]. In terms of sustainable agricultural production, the strategy primarily aims to reduce the use of mineral fertilizers, pesticides, and antimicrobials by 50% by 2030. The strategy envisages supporting a circular farming model through the efficient use of natural resources (e.g., land, waiter), improving energy efficiency in connection with the use of RES and increasing the use of organic fertilizers. A complementary document is the “Biodiversity strategy for 2030”, the implementation of which in terms of agricultural production will have a positive impact on the environment in rural areas [37]. The implementation of the goals set out in the strategic documents will result in the extensification of agricultural production and thus have a major impact on the energy economy of EU agriculture. Adaptation processes in the field of agricultural production technology and energy management will result in a reduction of GHG emissions, which is necessary in the context of environmental protection [38].

Poland has embarked on attaining the strategic objectives of the EU climate and energy policy. In 2009, the state administration prepared a strategic document on energy policy objectives until 2030 [38], which were updated in 2021 with a perspective extending to 2040 [39]. The strategic goals provide for a 23% improvement in energy efficiency and a 30% reduction in GHG emissions by 2030, as well as the implementation of nuclear energy by 2033. The transformation of energy systems is an important element of the state’s environmental policy [40]. Energy management and environmental protection have been identified as key objectives for the development of agriculture, rural areas, and fisheries until 2030 [41]. Statutory regulations define the conditions for production and use of RES [42,43], and agriculture and rural areas show great potential for the development of this segment of the energy sector. A good example is the production and use of first-generation biofuels, which determined the development of rapeseed and cereal production [44]. Polish agriculture is characterized by a large production of biomass and by-products, which can be used for energy purposes to a large extent, which will correspond to the model of a circular economy and will catalyze economic activity in rural areas. The energy transformation in Poland will require huge investments, including in the agri-food sector. Therefore, the government administration envisages allocating a large part of the funds from the National Reconstruction Plan for these purposes.

4. Energy Management in Agriculture—Theoretical Approach

Energy management in companies is becoming an increasingly important research issue [44] as energy is one of the key determinants of production and service activities [45]. This is confirmed by the fact that economic development, as reflected in GDP levels, is strongly linked to energy consumption in production and consumption [46,47]. The main reasons for the growing interest in energy management issues are the economic, environmental, and social consequences of efficient energy use.

Numerous energy crises, which have had a global character, have made producers and consumers realize that there is a real problem with respect to the depletion of energy resources and rational energy management [48,49,50]. The economic effects of the crises are primarily an increase in the price of energy raw materials and energy, which is a key determinant of inflation [51]. The prices of agricultural and food raw materials are also strongly correlated with energy prices, and this is primarily determined by the production of first-generation biofuels and the high energy costs of production and logistics in agriculture and the food industry [52,53,54]. The environmental impact of the energy economy is mainly illustrated by negative externalities, including, in particular, dwindling fossil resources and emissions of GHG, particulate matter (PM₁₀), and waste.

Consequently, the issues in question have become the subject of international and national considerations [38,39]. This is confirmed by UN [55] and EU [6,7] strategic documents, the main objective of which is to implement sustainable development based on a circular economy model [56,57,58]. In the linear economy model, economic growth is closely dependent on the use of non-renewable natural resources, including energy resources [59,60,61]. As a consequence, energy management issues take on a special meaning, which is very complex as it includes both energy production and energy consumption.

The issues of energy production and consumption in enterprises are becoming an increasingly important element of organizational management for economic and image reasons [62]. Farms, which are also businesses in the micro-economic sense, have historically been primarily energy consumers. Technological advances in the area of RES mean that many farms are generating electricity with PV installations, and large-scale operators are producing biogas. Agriculture, due to its large biomass resources, has the potential to develop RES and produce raw materials that can be processed into biofuels [63]. In this situation, energy management becomes an important element of farm management [64].

In the economic literature, energy management is defined as the management of energy production and consumption or the systematic application of management to improve the energy performance of an entity. Issues related to energy management are defined by differentiated categories, which should be considered close synonyms, i.e., the optimization and rationalization of energy consumption or energy management [65]. In the field of energy management, two models can be distinguished, which should be pursued in a complementary manner.

The first model is based on the search for new and renewable energy sources. The second model, which should be compulsory to implement in all organizations, focuses on improving efficiency, rationalization, and the optimization of energy consumption (e.g., reducing energy intensity). Energy management models are determined by a wide range of factors, which can be aggregated into the following groups: political (e.g., legal regulations) [66], socioeconomic (e.g., number of working days, energy prices) [64], technological [46], meteorological [65], and climatic [66]. In the agri-food sector, especially on farms, meteorological and climatic conditions play an important role in energy management, which determine crop production and, consequently, energy intensity [67]. Consequently, the energy demand of farms is primarily determined by the structure and intensity of production [68], but the energy efficiency of individual production lines is determined by technology [69].

Energy management in production entities, the main objective of which is to reduce the energy intensity of production and improve cost competitiveness, is the subject of numerous theoretical considerations and empirical studies [70,71]. An important aspect of these considerations is the issue of the so-called energy efficiency gap, which is defined as the difference between implemented solutions and systems and the theoretical potential for energy efficiency [72]. The energy efficiency gap in business entities can have diverse causes and is determined by market, organizational, and behavioral barriers [73].

The market perspective of considerations mainly focuses on maximizing the utility of inputs and minimizing costs, with consequent improvements in competitiveness [74]. Market-related barriers to efficiency improvement can also arise from imperfections in the market mechanism, manifested by incomplete or asymmetric information and difficulties in accessing capital. Here, organizational and behavioral barriers are very common, leading to suboptimal investment and retrofit decisions [75].

The study of energy efficiency in most scientific works is carried out using indicator analysis, which refers to the concepts of D. Debreu and M.J. Farell, i.e., the ratio of effects obtained to inputs incurred [22,23]. Statistical analysis can be carried out at different levels of detail and using very different categories of energy-related effects and inputs, both in terms of quantity and value, and this is determined by the availability of empirical data. Indicator analysis can take into account very different aspects of the energy economy, including fiscal and environmental regulations, economic cycles, and structural and modernization changes in the sector [76]. An indicative assessment of energy efficiency can also be part of benchmarking, which allows for comparison both with entities with similar characteristics and with entities in another industry that produce substitute products [77]. In energy efficiency analysis, it is also possible to use data envelopment analysis (DEA), but this is conditional on the availability of data from economic entities with similar characteristics, which are treated as so-called decision making units [DMUs] in the studies [78,79].

5. Determinants of Energy Management in Polish Agriculture

Energy management in agriculture focuses primarily on the consumption of energy carriers, which are an important item in the cost structure and determine the profitability of farms. The key issue is therefore to improve the energy efficiency of farms, the aim of which is, above all, to reduce energy consumption and the energy intensity of production. Reducing energy consumption in production not only reduces operating costs but also has a positive impact on the environment as lower energy intensity in production results in reduced GHG, dust, and waste emissions.

In recent years, energy management in agriculture has seen major changes as farms have not only consumed energy in agricultural production but have also started to produce energy. The main driver for this has been the technological advances enabling the development of RES. Agriculture has a large potential for RES production, and this is determined by the large biomass resources, which can be burned in solid form or as a substrate in biogas plants, and consequently, heat and power (CHP—combined heat and power) can be produced. Farms also have the potential to produce electricity in PV and wind installations, which can be commissioned on agricultural land with low soil quality so that they do not compete with the production of agricultural raw materials. The large area of roofs on farm, livestock, and residential buildings also provides great potential for the development of photovoltaics [80].

In the years 2004–2021, the conditions determining energy demand in Polish agriculture changed significantly, and this was determined by structural and modernization changes, which had a significant impact on production technology. The profound structural changes are illustrated first of all by the decrease in the number of agricultural holdings by 53.7% to 1317.7 thousand and the increase in the concentration of production in large and medium-sized entities. Despite the positive structural changes, agriculture is characterized by a very fragmented production structure in comparison with the EU-14 and the Czech Republic, Slovakia, and Hungary.

The main reason for the rural population’s resigning from farming was its low profitability and the improvement of the labor market situation in other sectors of the economy. The decline in the number of agricultural holdings was accompanied by a decrease in the area of arable land by 2.9% to 18.6 million ha, of which the area of arable land fell by 4.3% to 13.5 million ha. The concentration and specialization of production in medium-sized and large agricultural holdings resulted in an increase in the intensity of production technology. This is confirmed by the increasing involvement of fixed capital and mechanization in production, which has thus become less labor-intensive. As a result, agricultural employment decreased by 48.1% to 1.1 million people, but the number of tractors increased by 6.0% to 1.4 million units and the average tractor power increased by 23.1% to 46.9 kW.

Consequently, there was a substitution of labor by fixed capital in agricultural production, and the increasing number and power of tractors indicates that agricultural holdings had a high demand for machinery. The increase in the intensity of agricultural production technology is also evidenced by the high consumption of chemical yield-forming agents, which is reflected in the increase in the use of mineral fertilizers by 31.4% to 130.5 kg NPK/ha. The high intensity of agricultural production is also illustrated by the upward trends in livestock production; the stock of poultry and cattle increased by 34.7 and 19.6%, respectively. The unfavorable trends are only found in pig rearing, where the pig population decreased by 35.1%, the main reason being low profitability and ASF outbreaks [81]. The increase in production intensity has contributed to significant changes in its structure. The share of livestock products in global production increased from 44.7 to 47.7%, while plant products fell from 55.3 to 52.3%.

As a result, an increasing proportion of global production is distributed through market channels; the share of market produce in global production increased from 66.3 to 73.9% (

Table 1. Production determinants in Polish agriculture.

Specification	2004	2021	2004 = 100
Number of farms [in thousands]	2844.2	1317.4	46.3
Utilized agricultural area [in thousands ha]	19,207.2	18,646.8	97.1
of which arable land	14,074.4	13,474.7	95.7
Employment in agriculture [in thousands (persons)]	2094.2	1086.5	51.9
Number of agricultural tractors [in thousands]	1365.4	1447.7	106.0
Average tractor horsepower [kW]	38.1	46.9	123.1
Share of commodity production in gross agricultural output [%]	66.3	73.9	7.7 pp.
Structure of the gross production [%]
plant production	55.3	52.3	−3.0 pp.
animal production	44.7	47.7	3.0 pp.
Agri-food exports [USD million]	5321.4	37,268.2	700.3
of which agricultural raw materials	1165.7	6480.1	555.9
Agri-food imports [USD million]	3671.5	20,293.1	552.7
of which agricultural raw materials	1791.7	9145.3	510.4
Mineral fertilizer use [kg NPK/ha]	99.3	130.5	131.4
Cattle livestock [in thousands]	5353.4	6400.9	119.6
Pig livestock [in thousands]	16,987.9	11,033.3	64.9
Poultry livestock [in thousands]	119,811	164,369	137.2
Contribution of agriculture, fisheries and forestry to GDP [%]	4.5	2.2	2.3 pp.

Source: own study; unpublished and published Statistics Poland data [83,84].

). The increasing importance of market channels in the distribution of agricultural production is also confirmed by the high dynamics and large positive balance of foreign trade, but in this area, the food industry plays a key role [14,82,83]. There is a negative balance in foreign trade in agricultural raw materials, but the dynamics of exports were higher than those of imports. Imported agricultural raw materials are largely processed into products with a high share of added value, large quantities of which are exported. An example of this is the import of soybean meal, which is a raw material in feed in animal production, and Poland is a large exporter of beef, poultry, and eggs, as well as dairy products. The presented developmental considerations in Polish agriculture determined the demand for energy and the changes in the structure of the use of individual energy carriers.

6. Energy Management in Polish Agriculture

According to Statistics Poland, in the years 2004–2021, energy consumption in Polish agriculture was characterized by a variation of 136.9–188.6 PJ, but with a clear downward trend in the initial period. The average annual dynamics of energy consumption was 0.8%. Agriculture is not an energy-intensive sector of the Polish economy as its share in global energy consumption in 2021 was only 4.3% [24]. The main reason for the high variability of energy consumption in agriculture from year to year were mainly fluctuations in production, especially crop production, which is largely determined by weather conditions during a growing season. Animal production also shows a certain cyclicality, which is most evident in pig farming [84,85,86]. In the analyzed period, the level of livestock production, and thus the energy demand, was negatively affected by numerous outbreaks of avian influenza and African swine fever [87,88,89]. A factor stimulating energy demand in agricultural production is the progressive mechanization of work and the involvement of fixed capital, which result in less-labor-intensive production processes. The variability of energy consumption was accompanied by significant changes in the structure of demand for individual types of energy carriers. Progressing mechanization resulted in a decrease in the labor intensity of production but generated a high demand for liquid fuels, the consumption of which increased by 11.9% to 97.3 PJ, and their share in the structure of energy consumption increased to 60.9%. The structure of liquid fuel consumption is dominated by diesel fuel, which is used in tractors, self-propelled agricultural machinery (e.g., combine harvesters), and in transport. Petrol consumption in Polish agriculture is marginal as it is used only in passenger cars. Technological progress is illustrated by the decreasing consumption of solid fuels, which fell by 11.9% to 49.7 PJ, and their share in energy consumption decreased to 31.1%. Farms consume decreasing amounts of coal and wood, the combustion of which is used to generate the heat necessary for the production of vegetables under cover, the drying processes of agricultural products, and for heating livestock buildings (e.g., poultry rearing). The decreasing consumption of solid fuels is being replaced by increased consumption of electricity by 25.5% to 6.6 PJ and of gaseous fuels by 15.7% to 5.2 PJ. The share of gaseous fuels and electricity in agriculture is reactively small, at 3.3 and 4.1%, respectively, in 2021 (Figure 1).

In Poland, the institution that monitors and reports on the combustion of energy carriers and GHG emissions is the National Centre for Emissions Management, which was established to fulfil its obligations under EU law and to participate in the GHG emission trading scheme (EU ETS) [90]. It handles a national database, which collects data on GHG and other substance emissions. According to the data, between 2004 and 2021, 135.9–181.9 PJ per year were obtained from the combustion of primary energy carriers in the energy economy of agriculture, fisheries, and forestry, but a decreasing trend of 0.7% per year has been identified. The analysis of the data also shows that energy consumption in domestic agriculture in individual years was 1.8–5.4% lower than according to the data provided by Statistics Poland, but the directions, average annual dynamics of change, and level of energy consumption were similar. The main reason for these differences are methodological issues; the Statistics Poland data include consumption of energy carriers, including electricity. The National Centre for Emissions Management monitors energy yields from the combustion of media in agriculture, fisheries, and forestry, which does not include electricity consumption from transmission networks. In addition, some differences may also relate to the issue of reporting and collecting statistical data. The National Centre for Emissions Management data confirm the general trends in energy management in Polish agriculture. Liquid fuels are the main energy carrier, whose combustion was equivalent to 103.8 PJ in 2021, but their consumption has been steadily declining by 0.8% per year. Similar trends applied to solid fuels, the combustion of which fell by 1.9% per year to 25.9 PJ. The burning of biomass and gaseous fuels was characterized by high dynamics, confirming the thesis of the technological progress and modernization of the energy economy, including, above all, the use of renewable raw materials. Biomass combustion increased by 1.2% annually to 24.2 PJ, and gaseous fuels by 3.7% to 2.2 PJ (

Table 2. Fuel combustion and GHG emissions in agriculture, forestry, and fisheries in Poland in 2021.

Specification	Combustion			Emissions
	TJ	2004 = 100	Annual Average Dynamics	Kt CO2	2004 = 100	Annual Average Dynamics
Fuel combustion	156,079.1	88.4	−0.7	10,236.6	82.9	−1.1
Liquid fuels	103,762.9	86.7	−0.8	7669.7	86.6	−0.8
Solid fuels	25,898.9	72.4	−1.9	2448.5	71.3	−2.0
Gaseous fuels	2176.1	184.1	3.7	120.5	184.7	3.7
Biomass	24,241.3	122.0	1.2	2695.0	121.1	1.1

Source: own elaboration; National Centre for Emissions Management’s data [26].

).

The positive trends in energy management in agriculture, fisheries, and forestry are reflected in a 1.1% annual average reduction in GHG emissions to 10,236.6 Kt CO₂ in 2021. Changes in the combustion of individual energy carriers resulted in analogous changes in CO₂ emissions, including, mainly, a reduction in emissions from the combustion of liquid fuels of 0.8% per year and solid fuels of 2.0% per year. Substitution of solid fuels by gaseous fuels and biomass resulted in higher CO₂ emissions from the combustion of these energy carriers but lower emissions of waste and dust (P₁₀).

Between 2004 and 2021, there was an upward trend in energy consumption per farm to 121.3 MJ and per hectare of agricultural land to 10.8 MJ (Figure 2). However, there were large fluctuations in energy demand in individual years, which were primarily a consequence of variable production conditions (e.g., weather conditions, cyclical production). The increasing energy demand per hectare of utilized agricultural area and farm confirms the thesis of the substitution of labor by capita, which is reflected in the progressive mechanization of agricultural practices. Consequently, the energy intensity of agricultural production is increasing, but its labor intensity is decreasing. The analogical trend concerns the consumption of diesel, which is the main energy carrier.

According to Eurostat, Polish agriculture, in comparison with other EU countries, shows a relatively high energy consumption per hectare of agricultural land. It should be stressed that the EU countries are characterized by large variations in energy consumption, and this is determined by differences in the structure and level of intensity and innovation in agricultural production, which are largely determined by agroclimatic conditions. In 2021, the average total energy consumption in EU agriculture was 7.4 MJ/ha [90]. The Netherlands’ agriculture is characterized by the most energy-intensive production (91.8 MJ/ha), and this is determined by large-scale crop production under cover, the mechanization of work, and the development of logistical and storage facilities, which are the basis for intensive exports. Large energy inputs per unit of agricultural area are also found in Belgium (26.6 MJ) and Finland (13.7 MJ). Polish agriculture is characterized by relatively high inputs of energy carriers (10.8 MJ/ha), which are about 45% higher than the EU average, as well as higher energy consumption in comparison with countries that are large producers of agricultural raw materials: France, Italy, Germany, Spain, and Denmark (Figure 3).

The research conducted with the use of FADN data has shown that in the years 2004–2021, the individual production types of farms in Poland were characterized by a differentiated consumption of basic energy carriers and, consequently, by a differentiated energy cost structure. The main factor determining the consumption of individual energy carriers in the discussed groups of entities was their specialization of production, which determined the technologies applied. The research covered six main types of agricultural production, which have a dominant share in the commodity structure of agricultural production in Poland:

• Crop production: field crops, fruit, and vegetables;
• Animal production: milk, pork livestock, and poultry livestock.

A comparative analysis of the averaged structure of energy costs in the years 2004–2021 enabled a synthetic presentation of the consumption of individual energy carriers. The highest share of liquid fuels in the energy cost structure was characteristic of agricultural holdings with a large share of crop production in the production structure. In farms specializing in field crops, the share of liquid fuels in the energy cost structure amounted, on average, to 85.5%, and in fruit and vegetable production to 63.2% and 68.8%, respectively (Figure 4). A large share of liquid fuels in the structure of energy costs is also found in farms specializing in animal production, which are characterized by large production of fodder crops: milk production (76.4%) and pork livestock production (68.2%). The lowest consumption of liquid fuels occurs in poultry livestock production as, in many entities, rearing is based on purchased feed. A large share of electricity in the energy cost structure is found in entities whose production technology requires the use of livestock and storage buildings: fruit production (30.5%), pig farming (27.8%), slaughter poultry farming (26.2%), and dairy cattle farming (22.5%). Solid fuels have a large share in the energy cost structure of farms where production technology requires heating: production of vegetables under covers (20.2%) and production of poultry livestock (26.7%). A similar situation applies to the use of gaseous fuels, whose relatively large share in the energy cost structure is found only in the rearing of poultry for slaughter (13.5%).

A comparative analysis of energy efficiency across the different production types of FADN farms also showed great variation. The energy efficiency of production was determined as the ratio of production value to total energy costs and the share of energy in the total cost structure. In crop production, the highest value of income that was generated per unit of energy costs was found in entities specializing in fruit production, and the lowest was found in vegetable production. Consequently, vegetable production was the most energy-intensive, and this was determined by the large production under cover. Livestock production shows higher energy efficiency than crop production, and this means that it is characterized by lower energy intensity. This is particularly true for intensive pig and poultry production, which is technically very efficient and shows low energy intensity. The energy efficiency of milk production was at a level similar to that of field crops and vegetables, and this was determined by the high production of fodder crops (Figure 4).

The variation in energy management across FADN production types is also illustrated by the share of energy in the total cost structure. The research showed that between 2004 and 2021, most farm types experienced a slight decrease in the share of energy in the total cost structure, which may suggest an improvement in energy efficiency. The largest share of energy in the cost structure was characterized by farms specialized in vegetable production (20–27%), raw milk (10–12%), field crops (11–14%), and fruit (9–11%). Farms specializing in pork (5–7%) and poultry (4–6%) livestock production showed the lowest share of energy in terms of total costs (Figure 5). The main reason for the low share of energy in the cost structure in intensive livestock production is the share of feed, which, on average, accounts for about 70% of total costs.

Poland continues to transform its energy sector, with EU regulations having a decisive impact. According to Statistics Poland, between 2017 and 2021, energy generation from renewable sources increased by 38.7% to 536.1 PJ, and its consumption increased by 44.7% to 548.0 PJ. The share of RES in the country’s energy production increased from 14.2 to 21.1%, but gross energy consumption increased from 11.1 to 15.6%. Renewable energy was mainly derived from the combustion of solid biofuels (e.g., wood, biomass), the share of which was 66.8–76.1%. Wind farms and bio-liquid fuels also accounted for a relatively large share of energy production, with shares of 9.1–13.9% and 7.5–9.9%, respectively. Other RES categories, which include biogas plants, geothermal installations, hydroelectric power plants, heat pumps, PV installations, and municipal waste, had a small share in production [25]. However, positive development trends should be highlighted, as the share of solar energy in production increased from 0.7 to 3.3%, and heat pumps from 2.0 to 2.9% [29]. The individual sectors of the national economy show large variations in the use of RES. The largest share of renewable energy in gross final consumption is found in the heating and cooling sector (11.8–21.3%) and the power sector (4.5–17.2%). To a small extent, renewable energy is used in transport (4.2–6.9%).

According to Statistics Poland, between 2017 and 2021, RES consumption in agriculture and forestry increased by 11.9% to 24.3 PJ, but their share in global RES consumption decreased from 5.7 to 4.4%, and this means that RES consumption in other sectors of the national economy showed much higher dynamics. The share of renewable energy in total energy consumption in agriculture amounted to only 6.6–8.0% [25]. The structure of the use of raw materials for RES in agriculture and forestry was dominated by solid fuels (98.2–98.6%). The main reason for this was the large quantity of wood and biomass resources. The second source of renewable energy is biogas, but its share is small. The low share of biogas plants in agriculture is also due to the fragmented structure of the farms. Small- and medium-sized farms do not have sufficient capital and biomass sources to run their own biogas plants. At the same time, farmers in Poland show little interest in cooperative initiatives, and this is confirmed by the low share of producer groups and organizations in agricultural production, which have more economic potential and could invest in biogas plants [92,93,94,95].

According to the National Support Centre for Agriculture, between 2011 and 2021, the number of agricultural biogas plants increased from 16 to 129, and the installed electrical capacity increased from 15.9 to 125.3 MW [28] (Figure 6). The installed electrical capacity was comparable to the energy potential of the other biogas plants, which operate at sewage treatment plants and landfills [27]. The average installed electrical capacity of agricultural biogas plants is about 1 MW, and they are small plants according to the RES Act [43]. At the beginning, biogas plants were mainly located on large farms with intensive livestock production, and this was determined by the large manure and liquid manure resources and maize silage, which were the basic substrates. In subsequent years, biogas plants, especially the larger installations, were located at agri-food processing plants (e.g., sugar factories, dairies, distilleries, slaughterhouses, and meat and fruit and vegetable processing plants). According to the National Support Centre for Agriculture, agricultural biogas production increased from 36.6 to 342.1 million m³ in the analyzed period. Electricity production from agricultural biogas increased to approximately 733 GWh, of which 410 GWh was fed into the national electricity grid (

Table 3. Production of agricultural biogas and electricity and heat from agricultural biogas.

Year	Agricultural Biogas	Energy		Substrates
		Electrical	Heat	Total	Waste
	[Million m3]	[GWh]		[Thousand] t
2011	36.6	73.4	82.6	469.4	353.0
2012	73.2	141.8	160.1	917.1	670.2
2013	112.4	227.9	246.6	1574.2	1298.2
2014	174.3	355.0	373.9	2126.4	1686.4
2015	206.2	429.4	225.0	2484.5	2048.5
2016	250.2	524.5	-	3231.8	2743.4
2017	291.7	608.3	-	3796.9	3253.6
2018	303.6	638.5	-	4000.2	3440.9
2019	305.8	646.4	-	3957.8	3477.1
2020	325.9	689.7	-	4412.0	3832.7
2021	342.7	732.9	-	4913.5	4220.4

Source: Own elaboration; National Support Centre for Agriculture data.

). Between 2011 and 2021, the share of energy sold to the transmission grid in energy production decreased from 72.9 to 55.2%. The remaining amounts of electricity were consumed by agricultural production and households’ needs.

The production of agricultural biogas and electricity is also carried out in Poland by micro-installations, the number of which, according to the Energy Regulatory Office, in-creased from 16 to 38 between 2018 and 2021, and their total installed electrical capacity increased from 420 to 1178 kW. According to the National Support Centre for Agriculture, the number of agricultural biogas electricity generators in micro-installations increased from 11 to 33, but the register does not include prosumer installations. In the National Support Centre for Agriculture register, the number of micro-installations is the same as the number of generators, which means that all generators had one installation each. The total installed electrical power of these installations increased from 225.6 to 1049.6 kW in the analyzed period. The number of micro-installations in question is negligible compared to the total number of micro-installations using RES and the number of farms (app. 1.3 million), including the number of commodity farms characterized by a relatively larger scale of production (0.3–0.4 million). According to the Energy Regulatory Office, the total number of micro-installations using RES is approximately 1213.6 thousand, and their total installed electrical capacity is 9319.2 MW. This group of entities is dominated by PV micro-installations (1213.0 thousand), with a total installed electrical capacity of 9307.2 MW [26]. This confirms that the development potential of biogas-based micro-installations in domestic agriculture is poorly exploited.

The amount of substrates used for agricultural biogas production (app. 5.0 million t) represented a small proportion of the biomass that is produced and obtained as by-products in the agri-food sector. Solid biomass resources in Poland are estimated at about 30 million t per year, including waste straw of about 20 million t, by-products and sewage sludge of the food and pulp and paper industry of about 6 million t, and wood waste of about 4 million t. Annual wet biomass resources consist of manure (approx. 81 million t), slurry approx. (35 million m³), grasses from meadows and pastures not used for feed purposes approx. (2.3 million t), and waste from the meat industry (approx. 0.7 million t) and from the fruit and vegetable industry (approx. 0.4 million t). Taking into account the total substrate resources, and assuming that about 30% of natural fertilizers can be used for energy purposes, the annual potential for biogas production in the agri-food sector is estimated at 5–6 billion m³. The potential production of electricity and heat from the direct combustion of solid biomass is estimated at 69.2 and 115.3 PJ, respectively. Potential electricity and heat production from biomass biogas plants could be 10.8 and 14.0 PJ, respectively. The total potential production of electricity and heat from agricultural biomass is estimated at 154.8 PJ per year and is comparable to the energy consumption of the national agriculture, which, according to Statistics Poland, ranged between 136.9 and 188.6 PJ between 2017 and 2021 [24]. This comparison shows that the agri-food sector has potential energy self-sufficiency in electricity and heat, and any energy surplus generated can be used in other sectors of the national economy.

7. Discussion and Conclusions

Progressive adverse climate change and the depletion of fossil energy resources are the main reasons for the need for an energy transition in the global economy. The EU has taken a number of legislative steps to implement a circular economy model, and modernizing the energy economy will play a key role in this area. To this end, the “European Green Deal” strategy and the ”Fit For 55” package of legislative documents have been put forward, with the development of renewable energy sources and the reduction of GHG emissions at the core. In the agri-food sector, the response to the proposed changes is CAP reform, with the “Form Farm To Fork” strategy and the “Biodiversity strategy for 2030” setting the scene. Despite massive protests by farmers in many EU Member States against the implementation of these strategies, there are indications that they will nevertheless be implemented with some modifications as this is necessary for climate and environmental protection.

The Polish energy sector is undergoing a transformation process, and strategic documents have been developed for this purpose. In view of the enormous challenges for adaptation processes, energy management is becoming increasingly important in all sectors, including agriculture. For economic, environmental, and social reasons, economic entities attach increasing importance to energy efficiency, which determines, to a large extent, the costs of energy consumption. The issue of energy efficiency is the subject of investment decisions on farms, which implement modernization processes in order to reduce the energy intensity of technology.

The decline in the number of farms was accompanied by a process of concentration and intensification of production in large- and medium-sized entities. Modernization processes expressed themselves primarily in the greater involvement of fixed capital and mechanization, which led to a decrease in labor intensity of production but generated high energy demand. From 2004 to 2021, energy consumption in agriculture was characterized by high variability, but there was a downward trend in consumption of 0.7% per year. At the same time, there was an upward trend in energy input per hectare of agricultural land. As a result, Polish agriculture is relatively energy-intensive compared to other EU Member States. The research showed large changes in the consumption of individual energy carriers. Liquid fuels remain the main energy sources used, whose consumption increased by 11.9%, and their share in the structure of energy inputs increased to 60.9%. There is a systematic decline in the combustion of solid fuels, which are being replaced by gaseous fuels and biomass. Positive changes in the consumption structure of energy carriers resulted in a decrease in GHG, PM₁₀ dust, and waste emissions.

The research also showed that the individual production types of farms, according to the FADN categories, were characterized by different energy demand, the structure of the use of individual energy carriers, the share of energy in the structure of total costs, and energy efficiency. The largest share of energy in the structure of total costs was shown by farms specializing in vegetable, dairy, field crops, and fruit production. The lowest share of energy in the cost structure characterized pig and poultry farms. The various production types of agricultural holdings showed a differentiated demand for individual energy carriers, which was influenced by the technology used. Entities specializing in the production of field crops, milk, fruit and vegetables, and pigs generated a high demand for diesel. Farms specializing in the covered production of vegetables and poultry livestock used large amounts of solid and gaseous fuels for heat generation. The energy efficiency of the different production types of farms varied widely. In crop production, those specializing in fruit production were the most energy efficient, while vegetable production was the least efficient and most energy-intensive. Livestock production was more energy efficient than crop production, and this was particularly true of intensive pig and poultry production.

The Polish agri-food sector, including agriculture, makes little use of RES, despite the large potential, including, in particular, large biomass resources. The number of biogas plants has increased to approximately 137, and their total installed electrical capacity has increased to 126.5 MW. The number of installations is very low compared to the number of farms, as is the production of electricity and heat in relation to agricultural demand. The main barrier to the development of agricultural biogas plants is the fragmented structure of the farms, which do not have the necessary economic potential to make the investment. In addition, small- and medium-sized farms show little inclination towards formalized cooperation, and this is confirmed by the low number of producer groups and organizations. Farms show great interest in PV micro-installations, which are mostly installed on the roofs of buildings. Polish agriculture has the potential to produce electricity from large PV farms, which can be built on wasteland and agricultural land of low-quality classes. The main barrier to the development of PV installations remains the limited possibilities of connecting to the electricity grid, which periodically fails to receive the energy produced, and RES installations are shut down. An analogous situation applies to wind energy, whose installations can also be set up in rural areas.

Structural and modernization changes, including the transformation of energy use in Polish agriculture, have not been completed and still remain one of the most important challenges. The energy and agricultural policy in the EU will force the continuation and acceleration of these processes, despite the agricultural protests in 2024. Moreover, better energy management in Polish agriculture is needed to keep the sector competitive in the EU and global markets.

The agriculture and food industry in Poland show great potential for the implementation of the circular economy model, including primarily energy management. In particular, this concerns the possibility of utilizing the large biomass resources, which are currently primarily burned for heat production. The energy transformation of agriculture and rural areas will require huge investment as Poland’s entire energy system needs to be modernized and restructured, and the relevant strategic documents have been prepared. A great opportunity for the implementation of these changes will be the support of investment processes with funds from the Polish Resilience and Recovery Plan, but equally important will be the social changes in rural areas, which should result in the increased cooperation of farms in RES production (e.g., rural biogas plants).