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Abstract

Agricultural credit and rural finance problems are important constraints on restructuring, investment, and thus on recovery and growth in transition countries. In this paper we study agricultural investments and financing in Polish agriculture. Our empirical evidence is based on a 2001 survey of both dairy producing rural households and dairy companies in the North-East of Poland. Dairy companies have played an important role in financial assistance, in particular for dairy-specific investments. In addition, they had an important indirect impact on farm activities and investments through feed supply, and loan guarantee programs.

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