scholarly journals A longitudinal and cross-sectional analysis of the distribution of Common Agricultural Policy aids in European countries

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):  
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.


2020 ◽  
Vol 16 (1) ◽  
pp. 137-152
Author(s):  
Bazyli Czyżewski ◽  
Anna Matuszczak ◽  
Aleksander Grzelak ◽  
Marta Guth ◽  
Adam Majchrzak

AbstractThe conflict between capital-intensive agriculture, often called industrial agriculture, and sustainable farming is ongoing, and not because of Western European countries, where intensification is increasingly sustainable. It is caused by several million small farms in Central and Eastern Europe that must choose a long-term development path. This is also a dilemma for agricultural policy: Are small farms so environmentally friendly that they should play the role of ‘landscape guardians’ at the expense of public support and economic vegetation, or should they strive to improve productivity through investments? This study offers a methodological contribution to the value-based sustainability approach by computing indicators of environmental sustainable value (ESV). The authors have attempted to combine the value-oriented approach with frontier benchmarking. They then tested how the European Union Common Agricultural Policy (CAP) schemes contribute to ESV using a long-term panel of regionally representative farms from Farm Accountancy Data Network (FADN) with regard to factor endowments, for the years 2004–2017. The seminal within–between specification was employed to control the time variant and time invariant space heterogeneity of European regions. The main finding is that higher investment support is beneficial to ESV. Regarding factor endowment influence, there was a positive impact of the capital–labour ratio. Except the cross-sectional impact of environmental subsidies, the payments exert a negative effect on ESV.


2012 ◽  
Vol 49 (No. 2) ◽  
pp. 62-66
Author(s):  
D. Ahner

The paper deals with the particular stages of development of the EU Common Agricultural Policy (CAP) in the last forty years. The process and impacts of CAP reforms are analyzed for the particular production industries of agriculture. The paper also presents a detailed description of Agenda 2000 and mid-term review of the Common Agricultural Policy in 2002 that brought about many proposals for the future working of CAP after accession of Central and Eastern European countries.


2012 ◽  
Vol 49 (No. 6) ◽  
pp. 278-283
Author(s):  
M. Vosejpková

The Common Agricultural Policy (CAP) is of the character of a highly protective policy of the EU Member States. It includes a number of measures distorting the market directly and influences the farmers’ incomes depending on their production. There have been two reforms of the CAP so far and the third one is prepared with intention to come into force from 2006; it is called Mid-Term Review (MTR). This reform is concentrated on keeping and increasing consumers’ credibility and shifting to more competitive agriculture more orientated on market needs. The main Reform proposals include horizontal issues, i.e. Decoupling, Modulation/Degressivity, Cross-compliance, Farm Advisory System, IASC, Rural Development, and market issues concern dairy, cereals, rye, durum wheat, dried fodder, potato starch, seeds, nuts, rice, set-aside, carbon credit, beef. Besides the above mentioned goals, it is necessary to ensure conditions for rural development together with demands on environmental protection and improvement, so-called second pillar of the CAP. The attempt of cross-sectional summary and analysis of the MTR impacts for the EU was made in the article based on results of six studies performed by universities and DG AGRI in Brussels.


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.


AGROFOR ◽  
2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Vesna Mrdalj ◽  
Gordana Rokvić ◽  
Petra Nikić Nauth

One of the most challenging issues for the countries that are in the process ofaccession to the European Union is the reform of agriculture, precisely agriculturalpolicy and its compliance with the Common Agricultural Policy of the EuropeanUnion (CAP). The strategic orientation of the Republic of Srpska and Bosnia andHerzegovina is a full EU member status, which is defined with signatory to theStabilization and Accession Agreement in 2008 and confirmed with Applicationfor membership in the European Union, submitted in February 2016. Consideringthe upcoming accession negotiation process, the reformation of agricultural sectoris necessary in all areas of development: production, policy and legal frameworkand institutional development. Until 2015 Republic Srpska made and adopted twokey strategic documents that determine the directions, objectives and measures fordeveloping of agriculture and rural areas. Recently the Republic of Srpska adopteda new strategic plan for the development of agriculture and rural areas for theperiod 2016- 2020. Considering that agriculture budget represents a first indicatorof the countries sector priorities, objective of this paper is to provide analysis ofagricultural policy through the agricultural budget of the Republic of Srpska and itscompliance with Common Agricultural Policy of the EU. Comparative analysis isrelated to the period 2006 – 2014 using EU methodology for the classification ofagricultural measures (pillars and axis). Research results show that the structure ofmeasures and scope of budgetary support, defined within agricultural policy of theRepublic of Srpska is not compatible with Common Agricultural Policy of the EU.


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.


Management ◽  
2019 ◽  
Vol 23 (2) ◽  
pp. 295-309 ◽  
Author(s):  
Sebastian Stępień ◽  
Andrzej Czyżewski

Summary The agricultural policy of the European Union - Common Agricultural Policy (CAP) - was introduced in the 1960s as the first EU policy. Over the next decades it constituted the largest share in the expenditure of the EU budget. Today, although cohesion policy has replaced it in the first place, it is still being prioritized by the countries of the Community. Observation of the next financial perspectives, however, allows to conclude that the nature of the CAP is changing, which is a manifestation of the evolution of views on the role of the food sector in the economic development of the European Union. The aim of the study is to indicate the directions of reforms of the Common Agricultural Policy during its sixty-year functioning, the reasons for these changes and the consequences they have had for the agricultural sector in EU countries. These outcomes were supplemented by outlining the perspectives for the development of the EU agricultural policy in the coming years. The authors focused on the basic instruments of the CAP including income-generating, environmental and rural development-related. On the basis of the analysis of objectives and instruments of the CAP, it was stated that it departed from traditional market support to create more sophisticated intervention related to the changing macroeconomic conditions and expectations of the society. The paper is a review, with elements of meta-analysis, deduction and inductive reasoning.


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