Economic Performance of the Producers of Biomass for Energy Generation in the Context of National and European Policies—A Case Study of Poland

Abstract

Solid biomass (agro-residue) is the most important source of renewable energy. The accelerating impacts of climate change and global population growth contribute to air pollution through the use of fossil fuels. These processes increase the demand for energy. The European Union has adopted a climate action plan to address the above challenges. The main aim of this study was to assess the economic performance of the producers of biomass for energy generation in Poland. The detailed objectives were to determine land resources in the studied agricultural farms and to determine the value of fixed and current assets in the analyzed farms. We used questionnaires as the main method to collect data. Purposive sampling was used to choose the farms. We conducted various tests to analyze the revenues from biomass sales and their normality, such as the Dornik–Hansen test, the Shapiro–Wilk test, the Liliefors test, and the Jargue–Berra statistical test. Moreover, we conducted regression analysis to find factors that are the basis for the economic performance (incomes) of farms that sell biomass. Results: This study demonstrated that biomass sales had a minor impact on the performance of agricultural farms, but they enabled farmers to maintain their position on the market. The economic analysis was carried out on a representative group of Polish agricultural farms, taking into account fixed and current assets, land use, production structure, and employment. The findings indicate that a higher income from biomass sales was generally associated with better economic results per farm and per employee, although not always per hectare of land. This suggests that capital intensity and strategic resource management play a crucial role in the profitability of bioenergy-oriented agricultural production. Conclusions: We concluded that biomass sales had a negligible influence on farm income. But a small income from biomass sales could affect a farm’s economic viability.

1. Introduction

Over the last century, the global population increased more than five-fold, from around 1.5 billion at the beginning of the 20th century to approximately 8 billion at present, and it continues to grow [1,2]. Rapid population growth increases the demand for energy around the world. Global primary energy consumption increased more than four-fold in the last 50 years and continues to rise [2,3]. According to the International Energy Outlook (IEO) report of 2017, global energy consumption is predicted to increase by 28% between 2015 and 2040. In recent decades, the development of renewable energy sources (RESs) has emerged as one of the key priorities of the European Union’s (EU’s) energy policy [4]. Renewable energy sources promote energy security, reduce national economies’ dependence on fossil fuels, and decrease greenhouse gas emissions. Global reserves of solid, liquid, and gaseous fossil fuels are becoming gradually depleted, which leads to an increase in their prices. At the same time, fossil fuel combustion increases the emissions of CO₂ and other harmful compounds [5].

The Polish energy system relies heavily on coal, which, until recently, was responsible for around 80% of Poland’s overall energy mix [6]. In 2021, coal’s share of total electricity generation decreased to 70.8% [7]. Coal is a resource that is unlikely to be replaced with other energy carriers and energy generation methods [8]. Polish and global reserves of solid, liquid, and gaseous fossil fuels are becoming depleted [9]. The above spurs the search for new methods of generating cheap and safe energy, and growing awareness about the negative environmental impacts of fossil fuel use on a global scale paves the way for a shift towards clean technologies in the energy sector [10]. The energy transformation concept applies particularly to RESs, energy savings, and increased energy efficiency. In the 2021–2040 period, the shift to green energy will require massive funding, estimated at PLN 1600 billion. Around PLN 320–342 billion will be invested in the energy generation sector, and 80% of these funds will support the development of zero-carbon energy sources. The main goals of Poland’s energy policy until 2040 [11] are to increase the role of RESs, diversify energy sources, and reduce emissions. By 2030, the share of RESs is expected to reach 23% in gross energy consumption and at least 32% in net electricity generation. These goals will be achieved through the development of wind farms, photovoltaics, biomass, and biogas plants [12].

Figure 1 shows the production of both electricity and heat. Renewable energy sources (RESs) and nuclear power will be the leading sources of electricity (TWh) in the future. Among RESs, the most important will be biomass and waste, solids, wind, solar, and hydro. To diversify the energy mix, other sources, such as nuclear, should be included. The reason for this is that RESs depend on weather conditions, and in some seasons, such as winter, they will not be able to cover all energy needs. Nuclear power will also have the highest share of total energy generation (ktoe), followed by biomass, including waste biomass. Coal is being gradually phased out, and it is predicted to occupy the last place in the ranking.

Energy security is a key concern in national and international energy policies. Energy security plays a vital role in various areas, including diversification of energy sources, cogeneration, energy efficiency, strategic reserves, energy contracts, international agreements, infrastructure, market liberalization, RESs, innovative technologies, CO₂ storage and capture, and the nuclear energy industry [14].

Energy produced from biomass is one of the more stable sources of renewable energy compared to solar or wind energy, which increases its importance for electricity production. Biomass is mostly used for heat purposes in Poland. Biomass is derived mostly from wood and from straw on farms.

This paper presents a research methodology and also makes an academic contribution. We used a comprehensive approach to analyze the economic performance of biomass producers in Poland. First, the new dimension is the analysis of revenue from biomass and its scale on farms. This information is rarely found in the literature. Second, we conducted various tests to analyze the revenues from biomass sales and their normality, such as the Dornik–Hansen test, the Shapiro–Wilk test, the Liliefors test, and the Jargue–Berra statistical test. Moreover, we conducted a regression analysis to identify factors that are the basis for the economic performance (incomes) of farms that sell biomass. Finally, our contribution to existing knowledge was determining the fixed and current assets, plant production, animal production, and other equipment of farms that sell biomass.

The research methodology and academic contribution of this paper can be further addressed.

The main aim of this study was to assess the economic performance of the producers of biomass for energy generation in Poland.

The detailed objectives were as follows:

• Determine land resources on the studied agricultural farms;
• Determine the value of the fixed and current assets of the analyzed farms.

The following research questions were formulated:

• What is the financial status of the examined farms?
• What is the economic performance of farms that produce and sell biomass?

Hypothesis 1 (H1):

Fixed assets influence the economic performance of farms that produce and sell biomass for energy generation.

This paper is organized as follows: Section 1 presents the theory of ecological economics. Section 2 summarizes the methods. The results of this study are presented in the Section 3 and discussed in the Section 4. The key findings are summarized and conclusions are formulated in the Section 5.

Policy Support for Renewable Energy Sources in the EU

The history of energy in the European Union (EU) has a long tradition. After the Second World War, energy was an important issue. The first institutions that were responsible for the development of energy in the EU area were the European Coal and Steel Community 1951, EUROATOM 1957, and the European Economic Community (EEC) in 1958. Next, energy concerns were addressed by Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, which set targets for renewable energy in all EU Member States [15]. The binding target for Poland was a 15% share of renewable energy in total gross energy consumption by 2020 [16]. Poland complied with these requirements and achieved that target. In July 2021, the European Commission proposed a new set of climate regulations under the European Green Deal, referred to as the “Fit for 55” package. This package was designed to reduce net greenhouse gas emissions by 55% by 2030 and achieve climate neutrality by 2050 [17].

The support policies implemented at the EU level and in all EU Member States, as well as technological advancements, increase the share of RESs in energy generation. The EU is aiming for 59% renewable energy in its energy mix by 2030, and the share of RESs in total energy generation is expected to increase to 75% by 2050. By 2030, nearly half of the renewable energy will be derived from variable sources such as wind and solar power. These renewables are becoming cost-effective due to technological progress and investments. The EU’s energy policy framework beyond 2030 has not yet been formulated, but the development of wind farms is driven by commercial investors, the EU’s Emissions Transfer System (ETS), advanced technologies, and cost-effective solutions [18].

The energy and material inputs associated with biomass production have to be reduced to promote biomass conversion to secondary energy carriers. Biomass can be used in the production of heat, motor fuel, and electricity. The popularity of this renewable resource continues to increase [4].

Poland has to meet the environmental targets imposed by international agreements. These requirements have increased the amount of energy generated from renewables, including biomass. Renewable energy produced from biomass undoubtedly contributes to reducing environmental pollution [19]. Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources set binding targets for renewable energy in all EU Member States. The binding target for Poland was a 15% share of renewable energy in total gross energy consumption by 2020, which was less than the general EU target of 20% [20]. Poland met that target already in 2019 (15.38%), and by 2022, the share of renewable energy in total energy consumption increased to 16.81% [21].

The share of renewable energy in Poland’s overall energy balance was still low in 2019, which posed a number of challenges. Biomass can be obtained from diverse sources, and it is ideally suited for heat generation, particularly in distributed energy systems or cogeneration plants on local markets [19]. Statistics Poland modified the procedure of calculating the share of renewables to include a significantly higher proportion of wood burned in household boilers, fireplaces, and stoves, which enabled Poland to achieve the required share of RESs in total energy consumption [22].

Renewables are gradually becoming cost-effective in Poland. These energy sources could play an important role in the national economy, and biomass, in particular, agricultural biomass, should account for a high share of RESs, thus contributing to the development of rural areas and agriculture [20]. The cost of biomass-generated energy per kWh is several times lower in comparison with other RESs. Highly developed countries generally experience food surpluses, which suggests that some agricultural land in those countries could be used to produce biomass for non-food purposes. Biomass is a solid fuel that, unlike wind or solar power, can be stored. The establishment of a new agricultural sector dedicated to biomass production will create new jobs in agriculture and related industries, increase farming incomes, and stimulate the development of local economies and rural areas [23]. This is only possible if it does not jeopardize the security of the food supply. The usage of land in highly developed countries for biomass production purposes can impact food prices. The best solution is to use soils that are not suitable for food production. These can be depredated lands and marginal lands, which can develop RESs without jeopardizing the prices of food.

Poland has considerable potential for the production of biomass, including forest biomass, agricultural waste, and energy crops, such as willow and poplar, which are grown in dedicated energy plantations and extensively farmed grasslands. Forests, the wood industry, and agriculture (by-products and waste) are the main sources of biomass in Poland [24,25]. The energy output of biomass produced in Poland is estimated at 900 petajoules (PJ)/year [4]. In 2019, the overall energy potential of RESs in Poland reached 396 PJ, including 260 PJ from renewable solid biofuels [24].

A comparison of the availability and use of biomass and other RESs in Poland indicates the superiority of biomass. Renewables face numerous barriers due to Poland’s reliance on conventional sources of energy, as well as legal, technical, financial, and social factors. These obstacles undermine the development of renewable technologies in Poland [26]. The identified barriers must be addressed to facilitate the transition to sustainable energy.

In recent years, the Polish government has been actively involved in shaping and implementing the energy policy to address the events on international markets and to fulfill the EU’s energy targets [27]. These factors have underscored the significance of energy security in Poland.

All EU Member States have to comply with the EU’s binding renewable energy targets. These targets concern the production of renewables and the share of renewable energy in the overall energy mix, and they are set based on the availability of RESs and each country’s experience. The EU’s targets will boost competitiveness and promote the sustainable development of the energy sector [28]. Investments in renewable energy will enable Poland to meet the goals and targets set by the EU.

The EU has imposed renewable energy targets for 2030, and the continued growth of the RES sector until 2050 is one of the priorities of the EU’s energy policy. In Poland, energy generation costs and financial support mechanisms will affect the development of the renewable energy industry. Distributed energy can drive regional development. Poland’s regional policy should prioritize the distributed energy model by creating a support system promoting the effective use of RESs at the local level [29].

To meet the EU’s energy goals, Poland should introduce reliable economic and energy policies that will accentuate the opportunities arising from these targets. The Polish government should adopt and conscientiously implement an individual approach that accounts for the specificity of the Polish energy sector and recognizes the need for the modernization and reconstruction of energy infrastructure. This approach will enable Poland to effectively achieve binding energy targets [30].

In the EU, in a number of policy areas, innovation-enabling regulation is not only viable but is actually taking place. The aim of these policies is decarbonization and deindustrialization, which not only have positive but also negative effects because the EU will lose its competitiveness in the absence of revisions to the Green Deal. The mismatch in the competition is the result of limited authority to implement a vigorous industrial strategy, and there are no incentives to coordinate the industrial strategies of the Member States of the EU [31,32,33,34,35].

The European Commission’s (EC’s) acknowledgement of the need to combat climate change, lessen its effects, and establish a clear route to a carbon-neutral Europe by 2050 is reflected in the European Green Deal. Reducing greenhouse gas (GHG) emissions by at least 55% by 2030 in comparison to 1990 levels is the main objective outlined in this agreement. As a result, the Fit for 55 legislation package was established in July 2021 to operationalize this agreement. The Fit for 55 legal package is said to be supported by the three directives—the Renewable Energy Directive, the Energy Efficiency Directive, and the Energy Performance of Buildings Directive—that are directly tied to energy efficiency and renewable energy. Each Member State (MS) is required to incorporate these directives into national law [36,37,38,39].

Poland, which is one of the former eastern EU states, has difficulties in adapting to the new requirements and policy. Significant changes had to be adopted to coincide with coal’s dominance and the growing demand for energy. The historical reliance on hard coal and lignite resulted in the most carbon-intensive economy in the EU. Poland’s power industry has the highest CO₂ emissions in the EU (about 666 g CO₂/kwh versus the EU average of 251g in 2023) [40,41,42,43,44,45].

Poland, which is one of the newest Member States of the EU, is increasing the proportion of RESs in its energy mix. The European Energy Policy aims to increase the share of RESs in all Member States. To achieve climate neutrality, the EU has to make necessary investments in RESs. It should, in particular, help to switch to energy sources with zero carbon emissions, improving citizens’ quality of life by lowering greenhouse gas emissions from the energy industry [46,47,48,49,50].

The return on investments in renewable technologies is determined by energy generation costs per kWh, which are projected to increase by 2030. In particular, the cost of coal-based energy is expected to rise, whereas the cost of generating energy from biogas is expected to remain stable. Energy production costs for onshore wind farms and photovoltaic systems will continue to fall, and these systems will become more competitive relative to coal-based energy. However, the development and competitiveness of renewable technologies are largely dependent on support schemes [29].

The balance between environmental concerns, energy security, and economic output has to be considered when comparing the competitive advantage of various renewable technologies. The assessment of energy generation costs plays an important role in this context. The economic efficiency of renewable technologies should be compared based on the European Commission’s document containing information about energy sources, production costs, and the deployment of various technologies for electricity production, heat generation, and transport [51].

In Poland, the development of renewable energy assets also faces legal obstacles, and regulations that obstruct the growth of different RESs should be amended. One of such examples is the 2016 regulation that imposes a minimal distance between wind farms, households, and protected areas. This regulation has impeded the development of onshore wind farms in Poland [52]. As a result, the financial consequences of the claims being brought by foreign investors are difficult to predict. The above affects the development of RESs in Poland [53,54].

Regional policy involves strategic measures that are undertaken by the government in collaboration with voivodeship authorities to increase Polish regions’ competitive power, promote equal development opportunities, and achieve social and economic cohesion at the national level. Regional authorities have to assume responsibility for the development of renewables if support mechanisms are not provided by the state. In this case, regions should develop their own support strategies to fully harness the renewable energy potential at the local and regional levels [29].

Therefore, energy can be produced in the vicinity of households that consume electricity. As a result, the supply of energy is no longer controlled exclusively by the state and large power companies. Renewable technologies are becoming available to households, and solar panels can be installed on roofs and in gardens. End-users can thus generate energy for their own needs as well as the community’s needs in an environmentally friendly manner [55].

The achievement of the EU’s renewable energy targets will be a costly undertaking. The relevant costs are expected to reach around PLN 98.3 billion by 2030 (

Table 1. Investments in renewable energy and nuclear power (in PLN billion).

Type of Power Plant	2021–2025	2026–2030	2031–2035	2036–2040	Total
Biomass- and biogas-fired PPs and CHPPs	0.7	3.4	3.0	1.3	8.3
Hydropower plants	0.0	0.0	0.0	0.0	0.0
Onshore wind farms	18.5	0.0	0.0	16.0	34.4
Offshore wind farms	20.0	74.3	31.4	0.0	125.8
Photovoltaic (PV) plants	14.2	0.0	0.0	13.4	27.6
Nuclear plants	0.0	16.0	63.0	25.9	104.8
Fossil fuel-fired PPs and CHPPs	11.1	4.6	17.1	8.4	41.3
Total	64.5	98.3	114.5	65	342.2

PPs—power plants; CHPPs—combined heat and power plants. Source: [56].

). This figure includes investments in electricity and heat generation and the development of the capacity market, minus the decrease in external costs resulting from the transition from coal to RESs [29].

In the past, the energy policy was an integral part of the government’s actions, strategies, regulations, and policy monitoring measures that affected the performance of the energy sector. The growing popularity of renewables will lead to the emergence of a decentralized approach to energy policy at the local and regional levels [26]. Prosumers who produce energy in their households can become an important element of the national energy security system. Because of this change in perspective, the energy policy can better respond to local communities’ needs and contribute to the sustainable development of the energy sector [26].

Mechanisms promoting private investments and local approval for renewable energy projects are needed to speed up the development of RESs. In Poland, this goal could be achieved by introducing community ownership schemes, where local residents can finance renewable energy projects, participate in profits, and gain access to cheaper energy. Such schemes would promote community participation in RES development [57].

The renewable energy financing mechanism is determined mainly by the stage of a given project or technology. Most research and development costs, as well as the costs associated with the development of the European research infrastructure, are financed by framework programs. In turn, successive stages of pilot programs and projects promoting the commercialization and implementation of renewable technologies receive support from regional policy instruments and targeted programs [57].

The priorities of Poland’s energy policy include a stable energy supply under long-term contracts, national energy security, and economic efficiency. Poland’s energy policy is largely shaped by EU directives and binding targets. Directives that address European energy security, in particular, those concerning the liberalization of natural gas and electricity markets, play a particularly important role. Therefore, Poland has to align its energy policy with EU requirements [58]. Poland should actively work towards achieving the goals set by the EU while addressing national energy security concerns.

The energy policy should foster a favorable business environment to guarantee energy security. Relevant measures are implemented by the respective agencies and institutions, but the achievement of a political consensus and public support for renewable energy also play a crucial role [58]. The energy policy is closely linked to social and economic processes, and it relies on many documents and legal acts that regulate the operations of various sectors of the national economy. Therefore, the energy policy has to be aligned with a country’s overall social and economic development [58].

As outlined in Article 13 of Poland’s Energy Law, the goal of Poland’s energy policy is to ensure energy security, boost economic competitiveness, improve energy efficiency, and protect the environment. Article 14 focuses on the fuel and energy balance, the generation capacity of various fuels and energy sources, energy transmission systems, including cross-border networks, energy efficiency, environmental protection, development of RESs, and international cooperation. Poland’s energy policy is formulated based on sustainable development principles and includes an assessment of the implementation of the state’s energy policy in the previous period, a forecast covering a minimum of 20 years, and a list of instruments that will be applied to implement the energy policy over a minimum of 4 years (Article 15). The energy policy is developed every four years. Poland’s energy policy is implemented at the central and local levels [59,60].

Based on previous experiences, the Polish government has prepared a new program for the development of the energy sector, which places particular emphasis on RESs. The decision to incorporate renewables in Poland’s energy mix was prompted by environmental concerns and economic reasons, as well as the obligation to meet the political criteria stipulated in Poland’s EU accession treaty. The new energy policy introduces energy security standards and recognizes the role of RESs. A higher share of renewables in Poland’s energy mix will boost competition on the energy market and promote the sustainable development of the energy sector. Investments in renewables will facilitate the achievement of Poland’s energy goals in close collaboration with the EU [28].

By relying on domestically produced sources of energy and achieving energy self-sufficiency, Poland can play a more important role in the international arena and minimize the impact of political or economic pressures. Investments in RESs can create hundreds of thousands of jobs and stimulate economic growth. The government should strive to increase public awareness of RESs because renewables drive the development of modern industrial sectors. Poland can gain greater recognition in its relations with the EU and other countries by prioritizing renewables and engaging in global energy trends [28].

Fuels and energy contribute to rapid economic growth and affect energy security at the global and regional levels. Poland’s energy policy prioritizes energy security by addressing current and future needs. For this policy to be effectively implemented, the energy law has to be reformed to create a favorable environment for businesses operating in the energy sector. These changes will improve the performance of energy companies and safeguard Poland’s future energy needs. Poland’s energy policy will make a key contribution to the achievement of energy security at the regional and global levels [61].

As an EU Member State, Poland actively participates in the development of the European energy policy by adapting EU regulation to its specific requirements, energy resources, and technological capacity. Poland’s energy policy recognizes the need to reform the Energy Law to create a stable and transparent environment for businesses operating in the fuel and energy sector [59,60].

The Polish government and respective institutions, including the Ministry of the Economy, the Undersecretary of State, and the Ministry’s energy departments, play key roles in the national energy policy. The Ministry’s Energy Department is responsible for electricity, cogeneration, RESs, and energy efficiency, whereas the Department of Oil and Gas manages oil and gas infrastructure. The Department of Mining oversees the operations of coal mines and coking plants, and the Department of Nuclear Energy is responsible for nuclear power. The Department of Economic Development prepares economic development plans and monitors CO₂ emissions. The Energy Regulatory Office (URE) is also an important energy regulatory authority that reports directly to the Minister of the Economy. These institutions are a part of Poland’s energy management system; they monitor the implementation of energy policy goals and cooperate with international organizations [58].

Similar to the previous policy, the priority goal of the EU’s current energy policy is to reduce greenhouse gas emissions and limit the rise in average global temperature to below 2 °C. The adopted energy targets will contribute to the achievement of these goals [50].

Poland’s dependence on gas and oil imports obstructs the development of modern energy infrastructure. The above is exacerbated by the fact that coal still plays a major role in the country’s energy mix [61]. At the same time, Poland has to replace coal with other fuels to meet the EU’s targets concerning air pollution. The energy policy addresses businesses operating in the competitive fuel and energy markets. Government intervention in the energy sector should be limited, and state authorities should focus on energy security and compliance with international treaties and agreements, especially in the area of environmental protection and nuclear safety [61].

Renewable energy resources will enable Poland to achieve energy self-sufficiency and safeguard the country’s future energy needs. The achievement of legally binding targets for the share of RESs in the energy mix plays a key role in this context. Poland will contribute to competitive and sustainable development by prioritizing renewable energy [28].

A higher demand for agricultural biomass will enable farmers to manage surplus production, which will increase farming incomes. Long-term contracts for biomass supply will also decrease financial risks in agricultural production. The above will also decrease imports of conventional energy carriers, such as coal, and the resulting financial savings can be invested in regional development. Local governments play a key role in the promotion of renewable energy, and their responsibilities related to the implementation of the energy policy have been defined by the legislator. Regional authorities build and coordinate energy transmission systems at the municipal level. Municipal authorities are responsible for local energy security and for meeting the local demand for electricity, heat, and gaseous fuels. These goals have to be aligned with the rational use of local RESs and energy generation from waste products [62].

The green transition requires integrated support measures to ensure that the energy sector fulfills social needs, contributes to the growth of the national economy, promotes energy-efficient technologies in the long-term perspective, and fosters innovative solutions that can strengthen the energy licensing regime.

Renewable energy projects also deliver numerous benefits by promoting the following:

–

Job creation;

–

Rural development;

–

Biomass production on marginal land;

–

The use of low-grade forest wood in energy production;

–

Management of municipal waste;

–

Innovative business solutions, domestic technologies, and consumer services [63].

In Poland, commercial and industrial power plants, heat plants, and combined heat and power plants are flexible energy producers with a combined capacity of around 15 GW. According to experts, Poland’s theoretical renewable energy capacity exceeds the domestic demand. However, the energy market has a smaller potential, and the share of primary energy consumption from renewables can be realistically increased to 12–15% despite the existing barriers.

The main barriers to renewable energy development in Poland include the following:

–

Inadequate information and education—The role and possibilities offered by RESs in energy generation are underestimated. Such barriers are the result of people’s lack of knowledge regarding the benefits of RESs. Therefore, more education at all levels of education is necessary to explain the benefits.

–

Poor organizational and institutional support—Renewable energy does not receive support from dedicated institutions. In Poland, for example, there is a problem with the electricity system, which is not able to store all the energy produced by photovoltaics in summer. This is why new photovoltaic systems with energy storage accumulators should be promoted and financed.

–

Political factors—There is no strong political impetus to harness the potential of RESs. Not all political parties support RESs. Some political parties still promote coal as the most stable and reliable source of energy in the world.

–

Legal and economic barriers—There is no regulatory framework regarding financial support for renewable energy projects. Financial support is not sufficient enough to support RESs. The organization of energy farms is time-consuming and requires environmental opinions and social acceptance.

–

Weak cooperation—There is weak cooperation between organizations and institutions responsible for RESs and market actors. The problems mainly include the slow information stream between actors. Investors do not receive timely information about new requirements concerning the environment [62].

The value of investments that are required to expand Poland’s National Electric Power System (KSE) and achieve the optimal energy mix is presented in Table 1. An analysis of the model indicates that annual spending will peak in the 2026–2030 period, mainly due to investments in offshore wind farms. In the following period (2031–2040), most funds will be allocated to nuclear energy. Between 2021 and 2040, total spending, including financing costs, will reach PLN 300 billion, and most of these funds (PLN 195 billion) will support renewable energy development. If investments in other non-renewable resources are included in this financing scheme, total spending can reach PLN 342 billion. This massive financial undertaking poses a significant challenge for the Polish economy and requires cooperation between the public and private sectors.

Poland’s energy policy until 2040 promotes district heating, but final energy consumption in this area is not expected to increase. This is because new building insulation schemes and rigorous energy efficiency standards for new construction projects will improve energy efficiency and decrease heat consumption. According to final energy consumption forecasts, the demand for bituminous coal will decrease, mainly due to the modernization of industrial plants. Coal will also be gradually replaced with other fuels and energy carriers, including gas, electricity, and renewables [60].

The goal of Poland’s energy policy until 2040 is to achieve energy security, boost economic competitiveness, increase energy efficiency, minimize the energy industry’s impact on the environment, and optimize the use of domestic energy resources. Energy security remains the key priority. The new energy policy describes eight strategic approaches to achieving energy security. The policy recognizes the significance of nuclear energy—the first nuclear reactor unit with a capacity of 1–1.5 GW is scheduled for completion in 2033, and five more reactors will be commissioned for use every 2–3 years thereafter. The nuclear energy program requires adequate infrastructure, including new regulations, organizational solutions, responsible institutions, research and development facilities, and a training program for nuclear plant employees [64].

2. Materials and Methods

2.1. Data Sources

The data for the study were acquired from agricultural farms that produce and sell biomass for energy generation. The respondents were selected by purposive sampling based on two criteria: only farmers who produced biomass (straw and wood) and sold their produce to external users were included in the study. The study also considered the option of generating income from the sale of energy crops and agricultural waste for biogas production, including silage and herbage, as well as other RESs, such as wind and solar energy. The study was conducted on a group of 184 respondents, of which only 18 supplied wood, 28 produced both wood and straw, and 139 sold only straw.

A deliberate selection of farms was used in the investigation. The decision was predicated on two factors: the farm’s output of biomass and its sale (wood and straw). Furthermore, the potential for generating income from the sale of energy crops and other agricultural waste—such as silage, greenfodder, and, in the case of other renewable energy sources, wind and solar energy—required for the manufacture of agricultural biogas was considered.

Based on the profits from the sale of biomass, we separated the farms into four groups:

PLN 3000—58 farms (31.5%);

PLN 3001–6000—46 farms (25%);

PLN 6001–9000—20 farms (10.9%);

and PLN above 9000—60 farms (32.6%).

The different groups of profits from the sale of biomass are the result of different strategies. All the groups of farms engage in dairy production but not in pig production. The reason for not engaging in pig production is African Swine Fever (ASF), which destroys farms with such production. The Podlaskie and Mazowieckie provinces are particularly vulnerable to ASF, and farmers directly close such farms and direct their agricultural activity to plant production. The operation of these farms includes both plant and animal production, mainly dairy and calves.

Farms with the lowest profits from biomass sales generally have a considerable number of dairy cows and calves. Such a situation results in the need to have straw for animal litter. Sometimes, there is no free straw on a farm, and farmers have to buy straw.

Farms with profits from biomass sales of PLN 3001–6000 and PLN 6001–9000 have decreased dairy cow and calf production. Whereas farms with the biggest profits from biomass sales have the biggest farm area and the biggest dairy cow and calf production.

The information and data obtained from the farmers were input into the Excel program. Then, we evaluated the arithmetic means of the collected data. In the first step, we analyzed the normality test.

We used PLN—Polish zloty currency. If we change the currency to EUR or USD, then the results will change, and the analysis will depend on the exchange rate.

The price of straw, as the main biomass, is shaped individually according to supply and demand on the market. Straw bale prices in Poland vary widely and depend on many factors, such as region, grain type, degree of compression, straw quality, and season. Popular 120 cm diameter bales cost an average of 90 PLN per bale, but prices can range from 40 to 180 PLN per bale.

2.2. Methods

Various methods were used for data analysis. Data were collected with the use of questionnaires and were interpreted based on a critical analysis of the literature, deductive reasoning, and assessments of the financial performance of the biomass sector (Figure 2).

To determine whether the data were normal, we examined the findings using three tests. The Dornik–Hansen test was the initial test employed for the analysis [65]. The p-value of the Dornik–Hansen test was p = 0.003, with the result of 255.5. We also used the Shapiro–Wilk test to analyze the data. This test was used to analyze the level of significance [66]. The results of this test were as follows: 0.716186, and the p-value was p = 0.00017. The third test was the Liliefors test, which was used for the analysis of the empirical function for the cumulative distribution of a normal sample drawn at random [67]. The results of this test were as follows: 0.278438, with a p-value of p = 0.000. The last test was the Jargue–Berra statistical test, which aided in assessing the presumption that the data were distributed properly [68]. The results were as follows: 276,583, and the p-value was p = 0.008. The statistical analysis helped to verify that the profits from biomass sales had a normal distribution. The profits from straw provide important information to farmers who harvest grains and other plants, such as rapeseed. The increases in the area of grains and industrial plants are the result of good weather conditions, machinery implementation, and the use of new varieties [69].

Figure 2. Production and economic results, and the methods used to calculate them. Source: own elaboration based on FADN data [70].

Figure 2. Production and economic results, and the methods used to calculate them. Source: own elaboration based on FADN data [70].

In order to analyze the data, we calculated descriptive statistics. The average income from biomass sales was PLN 11 149, and the median was PLN 4900. The minimal value of revenue from sales was PLN 500, and the maximum was PLN 75,000. The next analyzed variable was the standard deviation, which was 13,413, with a skewedness of 19,224 and a kurtosis of 3.6907. The coefficient of variation was 12,031.

Purposive sampling was used to choose the farms, with a sizable percentage of them being in the Podlaskie and Mazowieckie voivodeships.

The findings of these investigations offered crucial details about the function of biomass on farms as well as its potential both now and in the future.

The survey asked a variety of questions about farmers’ perceptions of biomass.

Total production includes sales, transfers to the household, consumption for the needs of the farm, differences in stocks, and differences in the value of animals resulting from price changes. It is reduced by the purchase of animals [70].

Gross value added includes total production less intermediate consumption, adjusted for the balance of subsidies and taxes on operating activities [70].

Net value added includes the payment for the employment of production factors in the operational activity of the farm, regardless of their ownership status (external or own). This parameter is suitable for comparisons of farms with different ownership structures of the employed production factors. It is calculated by subtracting depreciation from gross value added.

The income of a family farm includes a fee for the involvement of its own production factors (in the case of farms with legal personality, only land and capital) in the operating activity of the farm and a fee for the risk taken by the farm manager in the accounting year. This income is calculated by adding the balance of subsidies and taxes on investments to the net value added and subtracting the cost of external factors [70].

In order to evaluate the impact of the chosen factors on the net income of a family farm, we conducted a multiple regression analysis.

The general form of a regression model with endogenous and exogenous variables can be presented as follows [71]:

Y = β0 + β1 × 1 + β2 × 2 +…+ βk Xk + e

(1)

where

Y is the dependent variable representing the phenomenon we want to explain.

β0, β1, …, βk are the regression coefficients (structural parameters) of the model equation in the population.

X1, X2, …, Xk are the explanatory variables or functions of the explanatory variables.

e is epsilon, with a subscript (the random component).

We chose the dependent variable and independent variables.

Y₁—Net income of family farms (PLN);

X₁—Value of fixed assets (PLN);

X₂—Value of current assets (PLN);

X₃—Agricultural land (ha);

X₄—Number of people employed (number);

X₅—Income from the sale of straw and wood (PLN).

3. Results

3.1. Value of Assets of Farms Producing and Selling Biomass for Energy Generation

The area of agricultural land (AL), arable land, and permanent grasslands (PGs) owned by farmers from each income group is presented in

Table 2. Area of the studied farms (ha) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Agricultural Land	Arable Land	Permanent Grasslands
Up to 3000	65.66	45.14	20.52
3001–6000	77.03	62.14	14.89
6001–9000	49.90	35.52	14.39
Above 9000	116.82	91.77	25.05

Source: own elaboration based on the results of the study.

. The incomes derived from the sale of straw and wood are divided into four groups.

In the first income group (up to PLN 3000), AL was determined at 65.66 ha, arable land at 45.14 ha, and PGs at 20.52 ha. In farms deriving a revenue of PLN 3001–6000, the area of AL was somewhat larger at 77.03 ha, whereas arable land and PGs reached 62.14 ha and 14.89 ha, respectively. Farms with a revenue of PLN 6001–9000 owned 49.90 ha of AL, 35.52 ha of arable land, and 14.39 ha of PGs. The largest land assets belonged to farms with a revenue higher than PLN 9000, where AL reached 116.82 ha, arable land reached 91.77 ha, and PGs reached 25.05 ha.

An analysis of the data presented in Table 2 indicates that the area of AL, arable land, and PGs generally increases with a rise in the income derived from the sale of straw and wood. The farms in the PLN 6001–9000 revenue group were the only exception, and they owned less land in each category than the farms in the lower-income groups. This discrepancy could be attributed to differences in land management strategies, crop diversification, or other factors that were not considered in the analysis. In general, higher-income farms tend to own more AL, which indirectly increases the revenues derived from the sale of straw and wood.

The value of fixed assets in the studied farms, divided into four groups based on the income derived from the sale of straw and wood, is presented in

Table 3. Value of fixed assets (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Value of Land	Value of Buildings	Machines and Equipment	Breeding Herd	Total
Up to 3000	1,956,352.7	532,259.4	717,362.4	164,000.0	3,369,974.7
3001–6000	2,699,528.7	558,827.2	722,557.2	149,333.3	4,130,246.6
6001–9000	1,641,219.2	1,112,000.0	513,701.8	204,187.5	3,471,108.6
Above 9000	4,970,164.0	843,120.0	954,908.1	176,537.0	6,944,729.2

Source: own elaboration based on the results of the study.

. The value of land is presented in the first column, the value of buildings is shown in the second column, the value of machines and equipment is presented in the third column, and the value of the breeding herd is shown in the fourth column. The total value of the fixed assets of the farms belonging to each income category is presented in the last column.

The value of fixed assets was lowest (PLN 3,369,000) for farms with a revenue of up to PLN 3000. The analyzed parameter was highest (PLN 6,944,000) for farms whose revenues exceeded PLN 9000. The value of fixed assets generally increased with a rise in straw and wood sales. The only significant exception was the PLN 6001–9000 revenue group, where the value of fixed assets was lower than in the PLN 3001–6000 group, which could be attributed to differences in asset management strategies, the characteristic features of farms in this income group, or changes in the market prices of land, buildings, machines, and breeding herds.

However, the obtained data suggest that farms that derive higher incomes from the sale of straw and wood generally own more fixed assets. This correlation is consistent with the theory of economics, which states that a higher fixed asset ratio implies more effective utilization of investments in fixed assets and, consequently, higher revenues. In this context, the present findings may suggest that higher-income farms are characterized by higher capital intensity, which can contribute to higher production efficiency and higher revenues from the sale of straw and wood.

The value of the current assets of the farms deriving different revenues from the sale of straw and wood is presented in

Table 4. Value of current assets (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Livestock	Agricultural Stocks	Total
Up to 3000	794,311.6	829,023.2	3,878,595.2
3001–6000	100,805.4	180,049.7	3,827,879.3
6001–9000	414,701.0	292,945.8	3,412,737.2
Above 9000	179,389.5	247,080.2	6,205,406.6

Source: own elaboration based on the results of the study.

. Livestock value is presented in the first column, and the value of agricultural stocks is shown in the second column. The total value of the current assets for each income group is presented in the last column.

The data shown in Table 4 indicate that the value of current assets was lowest (PLN 3,412,000) for farms with a revenue of PLN 6001–9000. The examined parameter was highest (PLN 6,205,000) for farms that generate more than PLN 9000 in revenue from biomass sales. The analysis revealed a clear trend indicating that the value of current assets tends to increase with a rise in proceeds from the sale of straw and wood. The PLN 6001–9000 revenue group was the only exception, where the value of the current assets was lower than that noted in the two lower income groups. This difference could be attributed to several factors, including the specificity of farms in this income category, various approaches to managing current assets, and external factors, such as changes in livestock and agricultural commodity markets.

In general, the examined data suggest that farms that derive higher incomes from the sale of straw and wood tend to have more current assets. A higher value of current assets could be indicative of higher levels of economic activity on the farm, which can lead to higher revenues. The results of this analysis provide valuable insights for decision-making processes in current asset management and maximizing incomes from the sale of straw and wood.

The employment of the agricultural farms generating different incomes from the sale of straw and wood is presented in

Table 5. Farm employment depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Employment (Persons)
Up to 3000	3.11
3001–6000	2.80
6001–9000	2.68
Above 9000	2.76

Source: own elaboration based on the results of the study.

. Employment was highest on farms deriving the lowest revenues (up to PLN 3000) from the sale of straw and wood (3.11 persons on average) and lowest for agricultural businesses in the PLN 6001–9000 revenue group (2.68 persons on average). Farms generating the highest revenues (above PLN 9000) employed 2.76 persons on average.

These data may suggest that the lowest-income farms usually employ more workers to increase their output and, consequently, revenues. Employment could also be higher on farms attempting to expand their productive capacity. In turn, agricultural farms with higher incomes could be characterized by higher levels of mechanization and automation, which decreases the demand for human labor.

The above results indicate that incomes from the sale of straw and wood are linked to employment, which suggests that workforce management is a significant element of agricultural management strategies. These data also imply that productivity can be increased by investing in new technologies or training employees on farms that derive lower revenues from the sale of straw and wood.

3.2. Organization of Crop and Livestock Production on Farms Producing Different Types of Renewable Energy Resources

The area of land under various crops on the farms deriving different revenues from the sale of straw and wood is presented in

Table 6. Land area (ha) under different crops depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Wheat	Triticale	Rye	Oats	Mixed Cereals	Barley	Rapeseed	Forage Maize	Grain Maize
Up to 3000	23.58	14.57	15.55	7.73	6.58	6.59	42.56	8.64	5.73
3001–6000	12.65	15.99	13.61	3.02	6.30	7.10	19.20	7.58	20.32
6001–9000	9.01	9.47	5.00	7.50	4.00	12.40	8.50	11.86	14.40
Above 9000	57.34	10.92	13.99	5.84	21.72	6.87	54.18	10.73	36.08

Source: own elaboration based on the results of the study.

. The following crops were considered in the analysis: wheat, triticale, rye, oats, mixed cereals, barley, rapeseed, forage maize, and grain maize. The land area under each crop is given in hectares (ha).

The analysis revealed that the lowest-revenue farms (up to PLN 3000) produce mostly wheat, triticale, rye, and rapeseed. On the farms in the PLN 3001–6000 revenue group, the largest land area was dedicated to the cultivation of triticale, barley, and grain maize. Barley and grain maize were the dominant crops on the farms in the PLN 6001–9000 revenue group. The farms with the highest revenues (above PLN 9000) produced mostly wheat, rapeseed, and grain maize.

The results of the analysis suggest that the choice of specific crops is closely correlated with proceeds from the sale of straw and wood. Higher-revenue farms can afford to grow crops that require greater financial inputs but offer a potentially higher return on investment, such as grain maize. It should be noted that the choice of crops is also influenced by the specificity of local markets, the availability of resources, and soil and climatic conditions, as well as the farmers’ preferences and skills.

The obtained results provide farmers with valuable information for choosing crops and management strategies that can enhance productivity and profitability in agricultural production.

The value of livestock produced by the farms that derive different revenues from the sale of straw and wood is presented in

Table 7. Value of livestock production (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Dairy Cows (Milk)	Calves	Other Cattle
Up to 3000	468,303.5	26,160.4	83,671.5
3001–6000	418,052.2	22,811.4	56,930.6
6001–9000	694,275.0	13,642.8	175,136.1
Above 9000	724,610.5	28,953.4	113,569.9

Source: own elaboration based on the results of the study.

. Livestock production is divided into four categories: dairy cows (milk), calves, other cattle, and pigs. In each category, the value of livestock production is given in PLN. No data on pig production were available for any of the analyzed income groups.

The analysis revealed that milk production was the predominant category of animal production in all income groups. Interestingly, the value of milk production increased with a rise in revenues from straw and wood sales. This phenomenon can probably be attributed to the fact that higher-revenue farms can afford to keep a higher number of dairy cows.

The production of calves and other cattle also increased with a rise in revenues from straw and wood sales, but the observed increase was less dynamic than that noted for milk production. The absence of data on pig production may be due to the fact that this type of production is less profitable, more difficult to manage, or simply less popular among the examined farms.

These results point to a significant relationship between straw and wood sales and the farmers’ decisions regarding livestock production. Farms generating higher revenues from the sale of straw and wood can afford to invest more capital in livestock production, which increases their value.

The number of animals on the farms deriving different revenues from the sale of straw and wood is presented in

Table 8. Number of animals (head) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Dairy Cows (Milk)	Calves	Other Cattle	Pigs
Up to 3000	46.72	15.51	19.44	-
3001–6000	31	15.26	17.85	-
6001–9000	50	15.42	33	-
Above 9000	40.5	22.25	30.54	-

Source: own elaboration based on the results of the study.

. Herd size is expressed as the number of animals in each of the following categories: dairy cows, calves, other cattle, and pigs. The number of animals in each category is shown in the columns. No data on pig production were available for any of the analyzed income groups.

An analysis of the data in Table 8 indicates that the number of dairy cows was highest on the farms deriving a revenue of PLN 6001–9000 from the sale of straw and wood. The number of calves was highest on the farms with the highest revenue (above PLN 9000). The farms in the PLN 6001–9000 revenue group were also characterized by the highest number of animals in the “other cattle” category.

The absence of data on pig production may be due to the fact that this type of production is less profitable, more difficult to manage, or simply less popular among the analyzed farms.

The present findings indicate that straw and wood sales can affect farmers’ decisions concerning livestock rearing. Farms with higher incomes can afford to keep more animals, which can increase livestock production and its value.

The milk yield of the farms deriving different revenues from the sale of straw and wood is presented in

Table 9. Milk yield depending on the income derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Milk Yield (L)
Up to 3000	6948.1
3001–6000	6939.6
6001–9000	7937.5
Above 9000	7623.0

Source: own elaboration based on the results of the study.

. Milk yield is given in liters for each of the four revenue groups. In the lowest-revenue farms (up to PLN 3000), the average milk yield reached 6948 L. The analyzed parameter was nearly identical (6939 L) for farms in the PLN 3001–6000 revenue group. The milk yield of the farms with incomes in the range of PLN 6001–9000 was considerably higher at 7937 L. This observation indicates that higher revenues from straw and wood sales can contribute to an improvement in cow rearing standards and animal welfare, thus increasing milk performance.

For the highest-revenue farms (above PLN 9000), the average milk yield was 7623 L, which could suggest that the optimal milk yield is not directly linked to the highest proceeds from straw and wood sales. This observation indicates that further research is needed to examine factors that affect milk yield, regardless of the incomes generated from the sale of straw and wood.

3.3. Economic Performance of Farms Producing Different Types of Renewable Energy Resources

The total value of the agricultural production (in PLN) of the farms deriving different incomes from the sale of straw and wood is presented in

Table 10. Total production (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Total Production per Farm (Livestock and Crops)	Production per Hectare of Agricultural Land	Production per One Full-Time Employee
Do 3000	976,118.6	14,866.2	313,956.3
3001–6000	727,408.7	9442.9	259,788.8
6001–9000	1,012,344.5	20,286.4	378,238.6
Pow. 9000	1,535,076.0	13,140.2	556,465.0

Source: own elaboration based on the results of the study.

. The total value of production, production per hectare of AL, and production per one full-time employee are presented for each income group.

For the farms in the lowest revenue group (up to PLN 3000), total production reached PLN 976,000; production per hectare of AL was PLN 14,866, and production per full-time employee was PLN 313,000. For the farms with revenues in the range of PLN 3001–6000, total production was somewhat lower at PLN 727,000. Production per hectare of AL reached PLN 9442, and production per full-time employee was PLN 259,000. For the farms deriving a revenue of PLN 6001–9000, total production was much higher at PLN 1,012,000. Production per hectare of AL also increased significantly to PLN 20,286. Production per full-time employee reached PLN 378,000. Total production was highest, at PLN 1,535,000, for the farms deriving the highest revenue from the sale of straw and wood (above PLN 9000). In this group, production per hectare of AL was PLN 13,140, and production per full-time employee reached PLN 556,000. These results suggest that higher straw and wood sales are generally correlated with higher total production per farm and per employee. However, the observed correlation was not linear because production per hectare of AL peaked in the PLN 6001–9000 income group, rather than the highest-income group.

The gross value added (GVA) of the farms deriving different incomes from the sale of straw and wood is presented in

Table 11. Gross value added (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Gross Value Added per Farm	Gross Value Added per Hectare of Agricultural Land	Gross Value Added per Full-Time Employee
Up to 3000	300,749.3	4580.4	96,732.2
3001–6000	327,508.6	4251.6	116,967.3
6001–9000	400,520.0	8026.0	149,644.8
Above 9000	877,804.3	7514.0	318,204.0

Source: own elaboration based on the results of the study.

, and it is expressed per farm, per hectare of AL, and per full-time employee. For the farms generating an income of up to PLN 3000, GVA reached PLN 300,000 per farm, PLN 4580 per hectare of AL, and PLN 96,732 per full-time employee. The farms in the second revenue group (PLN 3001–6000) were characterized by a GVA of PLN 327,000 per farm, PLN 4251 per hectare of AL, and PLN 116,000 per full-time employee. For the farms with a revenue of PLN 6001–9000, GVA reached PLN 400,000 per farm, PLN 8026 per hectare of AL, and PLN 149,000 per full-time employee. The analyzed parameter was highest for the farms whose revenue exceeded PLN 9000, where GVA was PLN 877,000 per farm, PLN 7514 per hectare of AL, and PLN 318,000 per full-time employee.

These data suggest that higher revenues from the sale of straw and wood are correlated with a higher GVA per farm, per employee, and per hectare of AL. However, GVA per hectare of AL was highest for the farms with an income of PLN 6001–9000, rather than for the farms that generated the highest revenues.

The net value added (NVA) of the farms deriving different revenues from the sale of straw and wood is presented in

Table 12. Net value added (PLN) depending on the revenue derived from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Net Value Added per Farm	Net Value Added per Hectare of Agricultural Land	Net Value Added per Full-Time Employee
Up to 3000	344,794.1	5251.2	110,898.6
3001–6000	278,094.8	3610.1	99,319.5
6001–9000	329,720.3	6607.2	123,192.2
Above 9000	739,312.4	6328.5	268,000.7

Source: own elaboration based on the results of the study.

, and it is expressed per farm, per hectare of AL, and per full-time employee. These data indicate that farms in the lowest-revenue group (up to PLN 3000) generated an NVA of PLN 344,000 per farm, PLN 5251 per hectare of AL, and PLN 110,000 per full-time employee. For the farms with a revenue of PLN 3001–6000, NVA reached PLN 278,000 per farm, PLN 3610 per hectare of AL, and PLN 99,000 per full-time employee. For the group of farms in the PLN 6001–9000 revenue group, NVA was PLN 329,000 per farm, PLN 6607 per hectare of AL, and PLN 123,000 per full-time employee. The net value added peaked for the highest-revenue farms (above PLN 9000) at PLN 739,000 per farm, PLN 6328 per hectare of AL, and PLN 268,000 per full-time employee.

Similar to GVA, NVA was positively correlated with incomes from straw and wood sales. However, NVA per hectare of AL was highest for the farms with an income of PLN 6001–9000 rather than the highest-income farms, which indicates that AL is managed most effectively in this group.

The net incomes of the family farms generating different proceeds from straw and wood sales are presented in

Table 13. Net income of family farms (PLN) deriving different revenue from the sale of straw and wood.

Revenue from the Sale of Straw and Wood (PLN)	Net Income per Farm	Net Income per Hectare of Agricultural Land	Net Income per Full-Time Employee
Up to 3000	272,676.0	4152.8	87,702.8
3001–6000	259,553.4	3369.4	92,697.6
6001–9000	338,001.1	6773.2	126,286.1
Above 9000	743,175.5	6361.5	269,401.1

Source: own elaboration based on the results of the study.

, and they are expressed per farm, per hectare of AL, and per full-time employee. These data indicate that the net income of farms with the lowest straw and wood sales (up to PLN 3000) reached PLN 272,000 per farm, PLN 4152 per hectare of AL, and PLN 87,000 per full-time employee. For the farms where straw and wood sales reached PLN 3001–6000, the net income was determined at PLN 259,000 per farm, PLN 3369 per hectare of AL, and PLN 92,000 per full-time employee. The net income of the PLN 6001–9000 group reached PLN 338,000 per farm, PLN 6773 per hectare of AL, and PLN 126,000 per full-time employee. The net income was highest for the farms with the highest straw and wood sales (above PLN 9000), at PLN 743,000 per farm, PLN 6361 per hectare of AL, and PLN 269,000 per full-time employee.

The above results indicate that higher straw and wood sales are generally correlated with higher net incomes of family farms. It should also be noted that the farms in the PLN 6001–9000 income group were characterized by a higher net income per hectare of AL than the farms with the highest straw and wood sales, which may suggest that the former utilized AL more effectively.

In the final step of our analysis, we performed a regression analysis. This is a simple analysis for investigating the relationship between variables. The relationship is expressed in a model connecting the dependent variable and independent variables [72]. It is a very useful tool for analyzing the factors shaping the dependent variable and is also interesting theoretically because of its elegant underlying mathematics and well-developed statistical theory [73].

Our research proved that the family farm income was determined the most by X₃—agricultural land, in ha (b* = 0.514); X₄—the number of people employed, in numbers (b* = −0.28); X₅—income from the sale of straw and wood, in PLN (b* = 0.141); and X₁—the value of fixed assets, in PLN (b* = 0.119). The rest of the analysis results were as follows: R² = 0.699, test F = 40,476, p value = 0.000, and std. error = 644,453.37. The intercept = −98,946.21165 and t(179) = −1.503. Land area was the most important variable shaping income from the sale of straw and wood (

Table 14. Factors shaping the net income of family farms (PLN) deriving different revenue from the sale of straw and wood.

Regression	R2	Test F	Std Error	p Value
X3—Agricultural land, in ha (b* = 0.514)
X4—Number of people employed, in numbers (b* = −0.28)	0.699	40.476	644,453.37
X5—Income from the sale of straw and wood, in PLN (b* = 0.141)				0.000
X1—Value of fixed assets, in PLN (b* = 0.119)

Source: own elaboration based on the results of the study.

). An increase in farm area per 1 ha increased the agricultural farm income by PLN 514, and an increase of one person employed on a farm increased income by PLN 119 per farm. Based on the results, we can conclude that the variable X₅—revenue from the sale of straw and wood, in PLN (b* = 0.141), has a positive impact on income. An increase in revenue from straw by PLN 1 thousand caused an increase in income by PLN 141. Fixed assets also increased income. An increase in fixed assets per PLN 1 thousand increased income by PLN 119 per farm. Our regression analysis helped to positively verify the elaborated hypothesis according to which fixed assets influence the economic performance of farms that produce and sell biomass for energy generation.

4. Discussion

According to the 2015 report of the International Renewable Energy Agency (IRENA), the share of renewable energy in the EU’s final energy use in the reference scenario will more than double from 284 PJ in 2010 to 531 PJ in 2030. The above projection applies to municipal electricity and heat generated from RESs, as well as motor fuel and cooking fuel [74].

Renewables, in particular, biomass, should be produced within the shortest possible distance from the facilities in which they will be converted to energy, preferably on local markets. Waste biomass should play an increasingly important role in this process to avoid competition with other sectors [14]. The energy potential of biomass and biogas will be utilized mainly in heat plants, but some resources will also be converted into electricity, particularly in cogeneration systems [14]. Coal will be gradually replaced with biomass in small-scale boiler plants and heat plants [4].

Poland has considerable renewable energy potential, but its capabilities are utilized to a limited extent due to the low availability of renewable technologies and capital. Under strict land-use and environmental requirements, renewables were expected to contribute 20% of Poland’s overall energy demand by 2020. The share of renewables in Poland’s overall energy mix could increase to 75% by 2050 and to 100% in the following decades [31].

According to the Institute of Soil Science and Plant Cultivation (IUNG) in Puławy, around 12.5 million tons of surplus straw from cereal production can be used in energy generation each year [75]. Polish farms produce around 81 million tons of manure and 35 million cubic meters of slurry each year. Approximately 30% of the agricultural waste can be converted to biogas. In addition, around 2.3 million tons of grass biomass grown in permanent grasslands that is not used for producing fodder can be used to generate energy [76].

Agriculture is an important sector of the Polish economy and the main source of income for many Polish citizens. Agricultural land used in the production of safe and high-quality food covers nearly half of Poland’s territory. As a Member State of the EU and a participant in the global economy, Poland has emerged as an agricultural power with free access to the European market, but its farming sector is subjected to competitive pressure. Polish agriculture has to constantly evolve to meet these challenges [77].

Polish farms produce large amounts of biomass, including woody biomass in dedicated plantations, that can be converted to energy, and their production potential can be systematically increased. Due to its large farmland area per capita, Poland is regarded as an EU Member State with immense agricultural potential. In Poland, the share of AL in total land area exceeds the EU average [78]. In addition, Poland is also an EU country with the highest employment in agriculture and the highest share of the total workforce employed in the farming sector [79].

Financial support schemes for Polish farmers contribute to higher crop yields, including biomass yields. Investments in bioenergy projects also receive support from EU funds, and the EU’s climate and energy targets stimulate the production of agricultural biomass for energy production. In view of the volume of agricultural biomass, local markets can develop in the Polish voivodeships of Wielkopolska, Mazovia, Podlasie, Łódź, Kuyavia-Pomerania, and Warmia and Mazury. The energy potential of biomass is much lower in the remaining voivodeships. In Poland, straw is a renewable resource with the highest theoretical energy potential. However, on most farms, straw is traditionally used as litter and fertilizer. For this reason, animal waste appears to be the most stable source of renewables for energy generation [80].

According to preliminary data, between 2019 and 2020, the average income of a family farm increased by 9.7% to PLN 49,011 [68]. Poland is a leading supplier of agricultural commodities, including crops, horticultural products, and animal-based products. In addition, the Polish farming sector is characterized by considerable fragmentation due to high employment in agriculture, relatively low use of agricultural materials and machines, and a predominance of low- and medium-quality soils. Germany, France, and Poland are among the largest EU countries with a high potential for growing energy crops [81,82].

Poland has strong trade relations with its neighboring countries. Germany is the primary provider of firewood (33.8% of imports), Belarus supplies the most wood chips (91.7% of imports) and wood debris (48.4% of imports), and Ukraine is the primary supplier of pellets (75.6% of imports) and charcoal (51.1% in 2017). Lithuania is the biggest exporter of wood chips (45.8%), Germany is the market leader for firewood (54.8%) and wood trash (66.7%), and Italy leads the pellet category (36.5%). Germany accounted for 52.2% of all charcoal exports in 2017. These values demonstrate that Poland trades woody biomass internationally with nations that specialize in various product types [17].

In the European Union (EU), increasing energy security is a key component of sustainable development. Because of their perceived cleanliness and environmental friendliness, renewable energy sources are attracting more attention globally. The information and analysis demonstrated in this study indicated a rise in the utilization of biomass on farms, which has a positive impact on economic results. Only the combination of biomass, photovoltaics, wind, and biofuels can contribute to the sustainable development of agriculture and farms. Moreover, in the future, when hard coal and lignite are eliminated, biomass, photovoltaics, wind, and nuclear energy will play a key role in shaping Poland’s energy mix [83].

The producers of biomass should be more supported within the European Union because they help in the energy transformation of the European Union (EU). Financial programs, such as the Biomass Crop Aid Program (BCAP), should be supported. A certified advanced biofuel production facility may repay qualifying feedstock farmers for up to 50% of the establishment costs of biomass crops and for payments ranging from USD 1 to USD 20 per dry ton. This program’s funding is quite erratic and depends on congressional appropriations in the USA [84].

According to our research, the farm area increased in accordance with income from biomass sales. The farms achieving the smallest income from biomass sales (up to PLN 3000) had 65.66 ha of agricultural land. The farms achieving the highest income from biomass sale had 116.82 ha of agricultural land. Our survey proved that the farms were bigger than the average farms in Poland. The average size of agricultural land on a farm in the country in 2022 was 11.32 ha. In the Mazowieckie voivodeship, the average size is 8.9 ha, and in the Podlaskie voivodeship, it is 12.73 ha [85].

Even though the revenue from straw and wood sales was low, they were correlated with income. The farmers who utilized agricultural land more effectively sold more straw. This strategy helped to develop a sustainable development strategy. This paradigm can also be organized by agricultural policies supporting the development of natural, environmental, and human resources on farms [86].

This research has limitations. The biggest problem is the availability of data for analysis. The data were obtained from farmers through direct interviews, and not all farmers wanted to answer the questions and provide values regarding their farms’ costs and revenue. Sometimes, the farmers estimated the costs by providing data that were not based on invoices and bills, only on their own opinions. But, during the survey, we did not have the chance to check all the data as the interviews generally took about an hour.

5. Conclusions

In Poland, forests and wooded land in agricultural farms occupy more than 0.9 million ha, and their area decreased by 89,100 ha (8.6%) over a period of three years since the last study in 2013. The decrease in the area of forests and wooded land indicates that some agricultural farms allocated all of their land resources to afforestation. Farms that consist solely of forests and wooded land are not classified as agricultural farms. Between 2013 and 2016, the average area of forests and wooded land per agricultural farm decreased by 1.8% to 1.60 ha. Approximately 42% of Polish agricultural farms owned forests and wooded land (marking a decrease of around 44,400 farms since 2013). A total of 13.3% of the agricultural farms with an area of 1–2 ha (total AL) owned forests and wooded land. In turn, only 0.9% of the farms with an area equal to or larger than 100 ha utilized 6.4% of the forests and wooded land owned by agricultural producers.

We elaborated hypothesis 1 (H1), which stated that fixed assets influence the economic performance of farms that produce and sell biomass for energy generation.

The collected data enabled us to verify the hypothesis, which indicates that farms with greater earnings from straw and wood sales typically possess a larger amount of fixed assets, including farm area. This relationship aligns with economic theory, which posits that a greater ratio of fixed assets leads to more efficient use of investments in those assets, and, as a result, increased revenues. In this regard, the current findings imply that farms with higher income levels are characterized by a greater degree of capital intensity, potentially enhancing their production efficiency and boosting revenues from straw and wood sales.

In Poland, the percentage of AL under different types of crops is as follows:

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Cereals (70.7%), mainly wheat and triticale, which account for more than 50%;

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Industrial (non-food) crops (11.1%);

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Fodder crops (9.7%);

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Potatoes (3%);

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Grain legumes (2.5%);

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Other (3%) [87].

In turn, the amount of straw that can be used in energy generation is mainly determined by agricultural demand for this renewable resource. Surplus straw that is not utilized in agricultural production can be converted into energy. In Poland, annual straw production is estimated at 34 million tons, and the amount of surplus straw has been increasing steadily in recent years. According to experts, approximately 25% of cereal straw can be used in energy production without exerting a negative impact on soil quality [88].

The present study demonstrated that biomass sales had a negligible influence on farm incomes. However, the revenue derived from biomass sales could affect a farm’s economic viability. Fossil fuels can only be replaced by a combination of renewable energy sources. Since most homes lack energy accumulators, photovoltaics, which generate energy during the day, should be complemented by biomass energy at night. There should be more financial assistance available for homeowners to build energy accumulators. An alternative is to use wind turbine energy to augment photovoltaics and biomass energy. Photovoltaics, which produce energy during the day, can be supplemented by energy produced from biomass, which is produced all day and during all seasons [89].

The farms with the smallest revenue from biomass sales achieved a total production that reached PLN 976,000 per farm and PLN 14,866 per 1 ha of agricultural land. The revenue, although small, in this group of farms has meaning for the survival of farms. The farms achieving the highest revenue from biomass sales achieved a total production that was much higher, at PLN 1,012,000, and the production per hectare increased significantly to PLN 20,286 PLN. These results demonstrate that the meaning of sales from biomass increased in accordance with total production.

Our research proved that the value of revenue from biomass sales increased in accordance with an increase in fixed assets. The highest value of fixed assets reached PLN 6,944,000 for the farms with higher revenue sales from biomass. An increase in the farms’ areas and fixed assets had a positive impact on revenues from biomass sales.

Based on our results, we developed the following policy recommendations:

Farmers can develop strategies, including biomass production. One strategy can be the production of pellets and other biomass products from straw. This requires investments in facilities, and they should be supported by EU funds.

Public policies should include increasing the possibilities of biomass utilization in pellet production and biogas. Most Polish farms are small. This is why investment in biogas plants in communes should solve the problems of excess straw.

Future studies should include not only farmers engaged in biomass production but also general RES producers. Comparing the opinions of different RES producers would be valuable. Moreover, each RES has its own development conditions, and different opinions would be fruitful.

Agriculture is a very important economic factor that is responsible for producing agricultural residues, which are used as energy biomass. The potential of agriculture as a source of biomass for energy purposes depends on policy support for its development [90].

Policy makers should support, to a greater extent, the utilization of biomass not only on farms but also in energy plants, which can increase independence from fossil fuels. As a result, greenhouse gas emissions will decrease and energy security will increase [91]. Moreover, these actions would increase the market for biomass as the most important renewable energy source, encourage the creation of producer groups, and decentralize the energy policy [92,93]. The co-firing of biomass for energy production should also be increased because it has a positive impact on the development of renewable energy sources. Supporting the installation of a biomass burning system in coal-fired power stations is necessary in the process of decarbonization and the use of excess cereal and rape straw [94].

The energy system in Poland should be transformed from a centralized system to a distributed system, which will increase the energy independence of plants and factories. This process would increase the climate neutrality and environmentally friendly development of agriculture and other economic sectors [95,96,97].

Forestry and the wood processing industry play a very important role in solid biomass generation for energy purposes. Supporting the utilization of perennial energy crops, such as Salix coppiece and Miscantus giganteus, would increase the use of low-quality lands for their cultivation and energy security [98,99]. The Jerusalem artichoke (JA) is also worth attention, which is a lignocellulosic herbaceous crop that is efficiently used for bioenergy generation [100]. Supporting such crops would increase energy security, decarbonization of the economy, and bioenergy self-efficiency of farms.