The turn of the 20th and 21st centuries has been a very dynamic period of change in Poland and around the world; also a period of change in thinking about the economy and agriculture. The present work is a study of the decline, divestments and development of agriculture in the areas of fragmented farming structure. The reflections presented herein, upon the processes of the remodelling of agrarian structures, of divestments in farming, and disagrarisation, are mostly anchored in the achievements of the theory of spatial economy (land management), and the microeconomic theories of choice, including the theory of an agricultural holding (farm) and land rent theories. The work focuses on the economic issues of remodelling the agrarian structure, but due to the nature of the issues discussed herein, specifically in relation to family-owned farms, the social and environmental aspects also needed to be taken into account – in response to the need for a heterogeneous approach, which is increasingly stressed in economic sciences today. The main objective of the research was to diagnose and assess the scale and scope of the mechanisms and processes that inform the decline and growth of agricultural holdings in the areas with fragmented farming structure. The study covered the area comprising four regions (provinces) of south-eastern Poland, which – according to the FADN nomenclature – form the macro region of Małopolska and Pogórze. The study of subject literature has been enriched with an analysis of available statistics; data from the Farm Accountancy Data Network (FADN); information obtained from the Department of Programming and Reporting at the Agency for Restructuring and Modernisation of Agriculture; and author’s own research conducted among farm owners. The information thus obtained made it possible to: • Determine the theoretical premises for the spatial diversity of agriculture, and the role of small farms in the shaping of agrarian structure. • Adapt the concept of “divestment” for the description and analysis of the phenomena occurring in agriculture. • Indicate the role and importance of the processes of divestment and disagrarisation in the restructuring of agriculture. • Assess the natural, social and economic determinants of the process of restructuring agriculture in areas with fragmented farming structure. • Assess selected aspects of economic efficiency of agriculture in areas with fragmented farming structure, with the focus on small and micro farms. • Carry out an ex ante evaluation of the impact of agricultural policy instruments on the process of restructuring of agriculture in the macro region of Małopolska and Pogórze. • Identify the indicators of decline and fall, and barriers to the liquidation of farms. • Assess the relationship between the level of socio-economic development, the structure of farming, and the quality of agricultural production space in a given territorial unit, versus the intensity of the economic and production disagrarisation processes in agricultural holdings. • Propose targeted solutions conducive to the improvement of the farming structure in areas with a high framentation of agriculture. Observation of the processes occurring in agriculture, and the scientific theories created on the basis thereof, have shown that even the smallest farms have a chance to continue in existence, provided that we are able to positively verify their adaptation to the changing conditions in the environment. Carrying out farming activity is a prerequisite for implementing the economic, social and environmental functions associated with family farms. At the same time, based on the analyses performed, we need to assume that the advanced processes of the production and economic disagrarisation of agricultural holdings are to a greater extent determined by the anatomical features of agriculture, and by the natural conditions, than by the level of socio-economic development of the given territorial unit. In the current economic climate, the remodelling of the agrarian structure is only possible with the active participation of the institutions responsible for the creation of economic growth and agricultural policy development. It is extremely important from the point of view of environmental protection, and the viability of rural areas, to support small farms engaged in agricultural activities, and to introduce such instruments that will enable the replacement of an economic collapse with divestments, carried out in a planned manner, and allowing for thus released agricultural resources to find alternative application in units with a higher development potential. The area of theoretical research requiring further exploration includes the issues such as transactional costs of the liquidation of agricultural holdings, and the assessment of the economic effectiveness of conducting divestments.
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