scholarly journals The impact of agricultural policy on income diversity among farmers in the European Union in 2005–2017

2020 ◽  
Vol 63 (3) ◽  
pp. 195-209
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
◽  
Agnieszka Sapa ◽  

The aim of paper is to answer to the question whether the EU’s Common Agricultural Policy reduces the differences in the average agricultural income between the EU-15 countries and those that joined the EU in 2004. The hypothesis was assumed that the CAP subsidies reduce the differences in agricultural income between these two groups of countries. Spreads between average income of farmers from the old and new members were calculated. The analysis is carried out in two variants. In the first one, the agricultural income does not include the CAP support, in the second one the agricultural income covers all CAP subsidies. The spatial scope of research involves two groups of countries: EU-15 (Belgium, the Netherlands, Luxembourg, France, Germany, Italy, the United Kingdom, Denmark, Ireland, Greece, Spain, Portugal, Finland, Austria and Sweden) and EU-8 (the Czech Republic, Poland, Slovakia, Lithuania, Latvia, Estonia, Hungary and Slovenia). The subjective scope of the survey covers representative farms from the EU countries (representing 4,045,300–5,295,930 farms in the EU countries, depending on the investigated year). The time frame of the analyses concerns the years 2005–2017. The data from the Farm Accountancy Data Network (FADN) are used. The study positively verifies the hypothesis that: subsidies from the CAP cause a decrease in the differences in average agricultural income between the EU-15 and the EU-8 countries. This contributes to an increase in economic sustainability and in the territorial cohesion of agriculture for the EU countries.

Author(s):  
Maryla Bieniek-Majka ◽  
Marta Guth

The aim of this study is to determine changes in the structure of horticultural farms in EU countries in the years 2007-2017 and their incomes and determine the share of subsidies of the Common Agricultural Policy in the income of horticultural farms in studied groups. Horticultural farms from the European Union Farm Accountancy Data Network (EUFADN) of all EU countries were surveyed. A dynamic analysis of the structure of farm numbers in particular groups of economic size (ES6) was carried out, and then the average change in income and the share of subsidies in income within these groups in 2007 and 2017 were presented. As a result of the conducted research, changes in the number of horticultural farms in various groups of economic size were taken into account and the assumptions concerning the decreasing scale of fragmentation of horticultural farms were confirmed by a decrease in the number of the economically weakest groups and an increase in the number of medium and large farms. It was noted that, in the studied groups, the strongest income growths concerned farms with medium or high economic strength, which may mean that income had a significant impact on the process. Moreover, it results from the conducted research that existing institutional solutions additionally supported the tendency to reduce the scale of fragmentation of horticultural farms in the EU-12 due to the fact that the shares of subsidies were higher in groups with higher economic strength.


Agriculture ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 196
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
Anna Matuszczak ◽  
Ryszard Kata ◽  
Piotr Kułyk

Many authors emphasize that reducing the income deprivation of the agricultural sector in relation to the non-agricultural sectors is a prerequisite to the growth of sustainability of agriculture. Thus, this raises the question: despite the impact of the Common Agricultural Policy (CAP) on the value of agricultural income in EU countries, is there still income deprivation for agriculture in relation to non-agricultural sectors? If so, is its depth comparable among farms with a different scale of production from the same EU country or among farms with the same scale of production from different countries? The answers to these questions constitute the added value of the article. The aim of the paper is to compare the ratio of agricultural income to non-agricultural income in regard to family farms in EU countries. Results show that the CAP solutions do limit the agricultural income disparities but that there are significant differences in the income deprivation of farms with different production values in the same country. These differences also apply to farms with a similar production volume in different countries. This publication includes critical analysis of literature, spatial-analysis and panel regression. The time scale of the research is 2004–2017, the spatial scope is individual EU countries and the subjective scope is representative EU Farm Accountancy Data Network (FADN) farms.


Author(s):  
Laura Catalina Timiras

The purpose of this paper is to identify how the marketing research market evolved after 2000 as a whole and by categories of the EU countries (the old and the new states respectively) as well as the impact of the general economic development on this evolution of the market. Since 2000 the marketing research market registered a spectacular evolution in the new EU members, which certifies that it is in the growth stage. In the old member states the marketing research market reached maturity, the dynamics being slyghtly positive or even stationary. Regardless of the marketing research market trends registered in the old or in the new EU members, the development levels attained in the two categories of states are different. Thus, approximately 90% of the marketing research market of the EU belongs to the old states and only about 10% to the new members. Similarly to the markets of other products, the market studied here was also affected by the economic crisis, so all the EU countries registered involutions (followed by recoveries) along with the onset of recession. In the countries analyzed, the relationship between the size of the marketing research market and the general economic development expressed by the GDP was a strong and direct one (both in the EU as a whole and by categories of EU countries), higher values of GDP being associated with larger (in terms of value) marketing research markets.


2018 ◽  
Vol 18(33) (3) ◽  
pp. 342-352
Author(s):  
Jadwiga Zaród

The level of agricultural development in the EU countries is varies significantly. The knowledge of factors directly affecting changes in agriculture can contribute to reducing disparities between countries. The purpose of this study is to indicate the main factors which determine agricultural development in the European Union. To implement this task, the discriminant analysis was used. The research material were data from the GUS and EUROSTAT regarding agriculture in EU countries. The research shows that the development of agriculture in the EU is determined in particular by factors such as the share of sowing of cereals in the total area of arable land, consumption expenditure in households, labor productivity and agricultural income. In addition, the discriminatory analysis allowed assigning particular countries to groups with different levels of agricultural development.


2019 ◽  
Vol 57 (2) ◽  
pp. 233-255
Author(s):  
Ivana Stojanović

AbstractApplication of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade), the community’s priority in meeting the needs for agricultural products (protection against imports) and the existence of financial solidarity (joint financing). Joining the European Union for new member states implies the termination of the implementation of the existing national agricultural policy and the the beginning of the implementation of the CAP. Although membership in the European Union implies many advantages, the period after joining this community can be quite economically unstable for some countries. One of the most significant problems is an increase in agricultural product prices and a rise in the general price level (inflation). The above can be confirmed by a simple empirical analysis of the economic indicators of the countries that joined the EU together in the period from 2004 until 2007.


Author(s):  
I. Marekha ◽  
V. Myrhorodska

The article substantiates the necessity to introduce systematic and effective tax eco-reforms in the context of resource-oriented economic development by the European Union countries. The performance and effectiveness of the reforms are estimated in relation to the main four groups of environmental taxes: energy taxes, pollution taxes, resource taxes and transport taxes. The macroecological policy of the European Union countries is the object of the undertaken analysis. The article examines the impact of macroeconomic factors on environmental taxes across the EU, using a correlation analysis toolkit. Four groups of macroeconomic parameters were selected for analysis: internal macroeconomic factors (nominal GDP, real GDP, inflation, business cycle stage, budget deficit, energy consumption level); external macroeconomic factors (government debt, exports, foreign direct investments); institutional macroparameters (environmental culture, shadow economy, trust in government) and fiscal macroparameters (tax culture and fiscal freedom). The economic interpretation of the obtained correlates is given. Based on the correlation analysis, stimulators and de-stimulators of tax environmental reforms across the EU were identified. It is established that the factors that positively influence on the tax environmental reforms are the overwhelming majority of the analyzed factors. The formation of indicators of the effectiveness of tax environmental reforms is undertaken for six countries of the Community. In particular, the analysis covers three economic leaders (Germany, the United Kingdom and France) and three leading EU countries in the field of environmental tax collection (Latvia, Greece and Slovenia). The article presents approaches to improving the assessment of the effectiveness of tax environmental reforms based on the consideration of fiscal (budget-filling) and reproductive (multiplicative) functions of environmental taxes. In this regard, the environmental tax multiplier and accelerator, as well as the GDP elasticity coefficient for environmental taxes, were calculated for the analyzed group of countries. The criteria of economic efficiency of tax eco-reforms are proposed. Keywords: environmental taxes, macroeconomic effect, macro-environmental policy, multiplier, accelerator, elasticity


Author(s):  
José-Luis Alfaro-Navarro ◽  
María-Encarnación Andrés-Martínez

The primary sector plays a key role in any country, from both economic and social perspectives, as has been underscored by the ongoing COVID-19 pandemic. In Europe, this sector is highly dependent on the aid provided under the Common Agricultural Policy (CAP). Therefore, the distribution of this aid among the various recipients is crucial to maintaining a strong primary sector throughout the European Union (EU). This is especially true in light of the new funding for the period from 2021 to 2027 and the United Kingdom's departure from the EU. In this sense, the 93.5% of the first pillar of CAP aid consists of direct aid to farmers. The related literature has shown its effect on aspects such as sustainability and farmers' income, among others, and its distribution in specific geographical areas. In this vein, the present paper conducts a longitudinal and cross-sectional analysis of the distribution of aid across EU countries. The results show that the CAP reforms and the incorporation of countries into the EU influenced the distribution of aid. Moreover, there is a clear division between Eastern and Western EU countries, with a more equitable distribution of aid in the West.


Author(s):  
Anna Lytvynchuk

At present, the state of the economy of the agricultural sector in many countries of the world, including in the countries of the European Union (EU), inherent in developed industry, has led to the transition to a new environmentally oriented agricultural policy. An important role is assigned to state support of agricultural producers, through subsidies, preferential credit policy, and in some countries, the complete abolition of taxation of entrepreneurial activity in rural areas, which confirms the relevance and national economic significance of the article. In domestic agroeconomic science and practice, there is no scientific concept of state participation in the process of bringing the agricultural sector out of the crisis. Research objectives – consider the development policy of the agricultural sector of the EU countries; study the level of state support for agricultural producers. The purpose of the work is to consider the degree of development of the agricultural policy of the EU countries in the context of ensuring food security. The methods and methodology of the research were general scientific, particular methods of cognition, including the historical and logical, the method of observation and comparison. Shows the main approaches to state regulation of the development of the agro-industrial sector at the level of the European Union as a whole and in the context of member countries; characteristic features and principles that determine the success and integrity of a unified agricultural policy; factors contributing to the productivity of agricultural land; agro-ecological requirements restricting the import of genetically modified products; the main tasks in the development of a new policy of the agrarian sector of the economy; priority directions of regulation of measures to support agricultural producers, integrated development of rural areas, increasing the competitiveness of the EU agricultural sector. The practical significance of the work lies in the fact that this study will allow the state bodies of Belarus to better understand how it is necessary to form an agricultural policy in the context of ensuring food security.


Author(s):  
Henryk Runowski

The aim of the article is to outline problems related to the measurement and assessment of income in European Union agriculture. Research shows that measuring agricultural income, as well as assessing differences in income between EU countries are a matter of many doubts. They not only result from problems of a methodical nature, but also from specific solutions of a cultural nature (e.g. sale of a successor farm or free family transfer). The methodology used to determine income in agriculture currently used in the European Union only takes income resulting from agricultural production and the processing of agricultural products as well as other activities directly related to agricultural production into account. Other sources of farmer income are ignored. This applies, for example, to remuneration for work outside the farm, social allowances and revenues from the lease or rental of property resources. Thus, the methodology used to determine the income of persons related to agriculture prevents or at least hinders the full assessment of the income situation of farmers in the EU and in individual countries, including Poland. The current way of measuring farmer income causes certain economic and social repercussions and is often criticized. The conclusion is that there is a need to improve the methodology of measuring income in agriculture.


Author(s):  
Iulia Andreea Bucur ◽  
Mircea Muntean

This paper aims to explore, based on theoretical and empirical research in the field and on data available on Eurostat and European Commission, in the context of financial significant imbalances and thus of the financial stress in the EU countries and especially in the Euro area, the main developments in the fiscal consolidation process given the fiscal effort of each country towards fiscal union. Since the financial crisis started in 2008, many EU Member States demonstrates an obvious macroeconomic imbalance which requires increased responsibility regarding fiscal developments. The impact of the crisis and the causes of sovereign debt high levels trends varied between EU countries as well as the budget deficit levels. Thus, the main priority for EU members must be the continuation of differentiated fiscal consolidation, given the specificities of each economy, favoring growth. The medium-term fiscal policy needs to focus on consolidating public finances along with restoring long-term sustainability.


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