# Sugar Beet Profitability in Lubelskie Province, Poland
## 4 Discussion
### Discussion of Results
The existence of these subsidies makes sugar beet cultivation profitable, even in the third year after the abolition of production quotas. It is still one of the most profitable traditional agricultural crops in the Lublin region, despite the variation in income from year to year [7; 8; 9; 10; 11; 12; 13; 14; 15; 16; 17; 18; 19]. Direct costs in 2021 are shown in Table 2 (Figures 1 and 2). A large impact on the cost of sugar beet production came from direct costs, accounting for 38.84%, and among them the shares were as follows: fertilizer costs-a share of 17.76%, seed costs-a share of 10.22%, costs of plant protection products-a share of 10.86%. Indirect costs in 2021 are presented in Table 2 (Figures 1 and 2). As can be seen from the analysis, the largest share in sugar beet cultivation (Table 2, Figures 1 and 2) was indirect costs (61.16%), and among them the following had the largest shares: costs of sugar beet sowing and harvesting services and liming-a share of 15.88%, costs of cultivation and plant protection-a share of 22.37%, overhead costs-a share of 6.56%, costs of own labor-a share of 13.52%. Figure 4 shows the distribution of revenue from sugar beet production. An analysis of revenue from sugar beet production in the 2021/2022 season shows that 76.09% of revenue was absorbed by sugar beet production costs in the following proportions: 46.54% by indirect costs and 29.55% by direct costs. Income accounted for 23.91% of the revenue generated from sugar beet production. The profitability of sugar beet production in the analyzed 2021/2022 season (income of PLN 2386.43) increased by PLN 198.53 compared to 2020/2021 (PLN 2187.90). The increase in income was mainly influenced by a rise in the price of sugar beets of PLN 10.24 and an increase in the sugar surcharge of PLN 30.83 compared to the 2020/2021 season, while sugar beet production costs remained unchanged. Overhead costs remained constant, as the increase in the share of direct costs of 0.15% was accompanied by a decrease in indirect costs of the same amount. A sustained annual increase in income from sugar beet production will influence sugar beet and sugar production by sugar mills. Figure 4: Distribution of revenue from sugar beet production (2021/2022). Direct costs in 2022 are shown in Figure 1. They had a significant impact, with a share of 40.49%, including fertilizer costs-26.99%, seed costs-6.81%, and crop protection product costs-6.70%. Indirect costs in 2022 are presented in Figure 2. As shown in the analysis, the largest share of total sugar beet production costs (Table 3, Figures 1 and 2) was made up of indirect costs, accounting for 59.51%. Among them, the largest shares were sugar beet sowing and harvesting services and field liming-14.27%, cultivation and plant protection-18.26%, general farming costs-15.31%, and own labor costs-9.83%. Figure 5 shows the distribution of revenue from sugar beet production. An analysis of revenue from sugar beet production in 2022/2023 shows that 90.87% of revenue was consumed by sugar beet production costs in the following proportions: 54.07% was absorbed by indirect costs, and 36.80% by direct costs. Income accounted for 9.13% of the revenue generated from sugar beet production. In the discussed years 2020-2022, sugar beet cultivation was profitable. In 2020, income from the cultivation of 1 hectare was 2187.90 PLN; in 2021, it was 2386.43 PLN; and in 2022, 1175.88 PLN. Income in 2020 and 2021 was roughly similar, with similar production costs. In the following year, 2022, there was a drastic reduction in income from sugar beet cultivation to the amount of 1175.88 PLN. This occurred due to an increase in the cost of sugar beet production, driven by rising input prices--both direct and indirect costs. In 2020, the direct costs of sugar beet cultivation amounted to 2760.72 PLN, and in 2021 they amounted to 2949.80 PLN. The difference between the costs was only 189.08 PLN.