scholarly journals The influence of direct support under common agricultural policy on farm incomes in Poland

2013 ◽  
Vol 7 (2-3) ◽  
pp. 33-37 ◽  
Author(s):  
Agnieszka Judzińska

The main objective of the paper is the analysis of changes on the level of income of agricultural producers, which took place in Poland in the early years of the accession to the EU, as well as a determination of the scale of the impact of financial support under the Common Agricultural Policy on the farm income situation. Poland’s membership in the EU gives rural farms opportunities to improve their economic situation. Financial aid, mainly in the form of a direct payment, has been the main factor determining the economical status of rural farms, whilst the other income making factors, such as improved productivity and increased agricultural production have played a much smaller role. The increase in revenue has enabled farmers not only to increase current expenditures, but also to carry out modernization efforts, which will determine the future economic and structural situation of the Polish agricultural sector and its competitiveness. However, a strong differentiation in terms of the economic situation of rural farms according to their size and specialization in production was also noticed. As a result, there is a still large number of farms in which the revenues received by farmers are insufficient to assure them adequate life standard. Therefore such farms are not able to both develop and invest. Only economically strong rural farms with high production potential have such opportunities, meaning that EU support will never be able to fully minimize the effects of small-scale production or to offset the insufficient efficiency and productivity of production factors.

2019 ◽  
Vol 7 (3) ◽  
pp. 40-50 ◽  
Author(s):  
Christilla Roederer-Rynning ◽  
Alan Matthews

Suppose we were in 2028: what would the Common Agricultural Policy (CAP) look like then? Would it be significantly different from the policy we know today? How, and why? And to what extent would Brexit have catalyzed these changes? The CAP is one of the founding policies of the EU and a strategic lever to address critical 21st century challenges such as climate change and the rising demand for food at the global level. It also has an important role in Europe to address the growing urban-rural divide and its potentially destabilizing impact on European politics. In this article, we examine the impact of Brexit from a political-economic perspective emphasizing the multi-level context within which the CAP is embedded. As an EU member state, the UK found a way to partly accommodate the CAP to its needs even though this policy was a source of intense UK dissatisfaction with the EU. Post-Brexit, the budgetary and market implications of the UK’s departure may favour positions that support a return to a more traditional policy of farm income support. On the other hand, more radical farm policies in England and Wales could partly offset these effects by setting the agenda for continued CAP reform, if they are seen to be successful.


Author(s):  
Eliška Stromská ◽  
Dominika Tóthová ◽  
Katarína Melichová

The implementation of the Common Agricultural Policy of the EU in the Czech Republic brought many changes in the functioning and financing of agriculture in the Czech Republic with political, economic, and social impacts and many challenges and threats for Czech farmers. Since the Czech Republic acceded to the EU, the Common Agricultural Policy has been reformed several times. The aim of the article is to evaluate the impact of the Common Agricultural Policy on Czech farmers in 2014–2020. The evaluation is based on a qualitative survey among selected farmers in the Moravian-Silesian and Olomouc regions. The research results show that enterprises positively evaluate financial stability and the overall protection of the agricultural sector. Support for the diversification of agriculture and support for the investment was also highlighted. On the contrary, the administrative burden, great emphasis on cross compliance rules, differences in the payments in EU countries, reducing the competitiveness of Czech agriculture and unfavourable conditions for livestock farmers were assessed negatively.


2021 ◽  
pp. 1-15
Author(s):  
Henry Ufomba

Abstract This paper is situated within the growing debate on how the domestic economic policies of developed countries condition that of the developing countries through the mechanism of international trade relations under the auspices of the WTO. Using the framework of the dependency theory I shall examine the economic impact of the EU Common Agricultural Policy (CAP) on Africa with critical attention on the agricultural sector of the former, drawing empirical evidence from the present situation in Senegal. This answered the overarching question: How does the EU CAP affect the economies of Africa in general and Senegal in particular? The empirical evidence from Senegal’s experience presented in this paper revealed that CAP negatively affects the economic growth of Africa through the suffocation of its agricultural sector as a result of its distortion of the domestic price and the inability of local farmers to produce at a price that can compete equally with the heavily subsidized imported alternatives from the EU.


Author(s):  
Nadiia Kryvenko

Introduction. Integration has reached its highest level of development in the EU, and particular attention is drawn to the agrarian integration and resolution of these problems at the beginning of the integration process. This in its turn confirms the significant importance of the agrarian sector for the member-states. Although, the majority of this market participant does not trade agricultural products. The growing global food problem, the positive consequences of the CAP for EU integration, the significant importance of the agricultural sector for Ukraine, which is one of the major exporters of some agri-food products, and the existence of a number of regional trade agreements confirm the importance of research of the Common Agricultural Policy (CAP). Purpose. It is pivotal to explore the importance of the EU CAP for the development of EU integration, its goals and changes, the mechanism, the formation of a common market. In addition, it is a positive experience of the integration group and Ukraine can learn a lesson if manages to analyze the EU’s place in the world market of agricultural products. Methods. The methods of theoretical generalization, historical method, method of analysis, comparison, and graphical method were used in the article for revealing the features of the CAP and the EU as an exporter of agricultural products. Results. The research shows the importance of the agrarian integration of the EU (it is confirmed by the CAP) and the impact of the CAP on the development of integration. In the case of enlargement of the EU, difficulties are often caused by agrarian policy. The article analyzes the aims of the CAP, which varied during the group history depending on a number of factors, and it shows its flexibility and compliance with urgent problems. The creation of a common market and the use of appropriate regulatory measures (which can also be used by Ukraine) are analyzed. It is determined that the EU is one of the world’s major producers and exporters of agri-food products, and its export share of many product is more than 30% or even 50%. Discussion. In further research it is advisable to focus on the stages and reforms of the CAP and to take into account some new aims CAP for the agricultural policy of Ukraine.


2018 ◽  
Vol 9 (3) ◽  
pp. 639
Author(s):  
Baglan AIMURZINA ◽  
Mazken KAMENOVA ◽  
Ainura OMAROVA ◽  
Galina PESTUNOVA ◽  
Ainur KARIPOVA ◽  
...  

In this paper it is noted that the important problem of the existing economic relations in the agrarian sphere is the choice of forms of management. The practice of reforms in agriculture has shown that more than 80% of gross output in Kazakhstan is currently produced by "households" and peasant (farmer) farms which provides further increase in the production of agricultural products namely crop production and increase its economic efficiency. Currently the agricultural sector has a tendency to small-scale production. As the situation has shown one of the main factors negatively influencing investment activity is financial instability of the majority of agricultural producers, low level of its profitability and significant risks.  Factors of low profit growth of the agricultural sector are related to the peculiarities of demand for agricultural products and seasonality of production in this industry. The analysis of the structure of gross agricultural production of the Republic of Kazakhstan by categories of farms, the returnability of agricultural production for 2012-2016 shows the impact of the price and yield of grain on the level of farm income. Proposals for further improvement of grain pricing are given.


European View ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 171-177 ◽  
Author(s):  
Nicole M. Schmidt

Agriculture in the context of climate change is often a provocative subject because agriculture is both heavily impacted by the warming world and also a principal contributor to climate change. As efforts to reduce greenhouse gas emissions increase, the EU is pushing all sectors to integrate measures to combat climate change. This article argues that the agricultural sector has instigated a process of integrating climate concerns. However, these efforts will not lead to a large number of disruptive changes in the agricultural sector. While the EU is putting climate change firmly on the agricultural agenda, ranking the issue even higher than the environment, the Union’s primary goal is still to support the income of farmers. Hence, the EU’s intentions will likely lead to raising awareness of the issue of climate change in the context of agriculture but will not lead to any transformative changes in European agricultural policymaking.


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.


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.


2012 ◽  
Vol 48 (No. 9) ◽  
pp. 389-394
Author(s):  
F. Simon ◽  
J. Novák

The comparison of Czech and French agriculture results shows a higher intensity, productivity and profitability of French agriculture. There are just small differences in the effectiveness of the production. The Czech agricultural enterprises have been in economic distress for several years and only a low portion of them is able to modernize and increase reproduction. There is also highlighted the importance of the EU Common Agricultural Policy for the development and stabilization of French agriculture.


Energies ◽  
2021 ◽  
Vol 14 (24) ◽  
pp. 8242
Author(s):  
Aleksandra Pawłowska ◽  
Renata Grochowska

Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.


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