PR - Cash Flows In The Optimization Of Capital Structure In Agricultural Holdings With Animal Production
This study presents the results of a non-linear optimization of available sources of financing of agricultural holdings with animal production, which was carried out based on data obtained from the FADN-PL database for the year 2008. On the basis of the model, a capital structure was designed for the “granivores” type of holdings, which were characterised by either a low or a high debt level. On the basis of the research conducted it was observed that the optimization of sources of financing enables the operational balance and the income to increase for those family-owned agricultural holdings which maintained high levels of debt. The optimum cost of capital determined for a given available financing structure, coupled with implementation of a given investment project, contributed to an improvement of ROE in holdings employing a higher level of borrowed capital.
Keywords: farms, optimization of capital structure, cash flows, animal production