Financial Energy as a Determinant of Financial Security: The Case of European Union Farms

This research focuses on an interdisciplinary approach to the financial energy of farms, allowing it to be linked to the overall financial health of the entity, which is influenced by various factors, including the use of equity and debt capital, and the treatment of money as a source of energy. The data source for the analysis consisted of statistics from the Farm Accountancy Data Network (FADN). This study encompassed the average agricultural holdings in the European Union, as well as average farms classified by individual regions and economic size classes. This research covered both the European Union as a whole and individual regions within EU member states. The objective of this study is to assess the factors that determine the financial security of EU farms using factor analysis. The results of this research indicate that financial energy may be one of the main factors shaping the financial security of farms. This is particularly true for small farms, which, in line with the goals of sustainable development, should increase their income (financial energy).