scholarly journals economic impacts of direct payments on agricultural income – A Literature Review

Competitio ◽  
2021 ◽  
Vol 19 (1-2) ◽  
pp. 1-23
Author(s):  
Akos Szerletics ◽  
Attila Jambor

The economic impacts of direct payments is a widely studied field in the literature related to the Common Agricultural Policy. This article aims to provide a systematic review of the income-related impacts of direct payments. In doing so, the article screened the academic literature on the impacts of direct payments and identified 150 relevant ones, out of which 41 were written directly on income-related effects.Relevant articles can be classified into four groups: general, distributional, stabilisation and other impacts. Most of the literature criticised the ongoing system of direct payments and their effectiveness in producing income-related policy goals. We believe that our results can be useful for researchers and policymakers in better understanding the income-related impacts of direct payments. Journal of Economic Literature (JEL) classification: Q18

Author(s):  
Christilla Roederer-Rynning

This chapter examines the processes that make up the European Union’s common agricultural policy (CAP), with particular emphasis on how the Community method functions in agriculture and how it upheld for decades the walls of fortress CAP. Today’s CAP bears little resemblance to the system of the 1960s, except for comparatively high tariff protection. The controversial device of price support has largely been replaced by direct payments to producers. The chapter first provides an overview of the origins of CAP before discussing two variants of the Community method in agriculture: hegemonic intergovernmentalism and competitive intergovernmentalism. It argues that the challenge for CAP regulators today is not to prevent a hypothetical comeback to the price-support system or generalized market intervention, but to prevent the fragmentation of the single market through a muddled implementation of greening and the consolidation of uneven regimes of support among member states.


Agriculture ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 34 ◽  
Author(s):  
Marta Guth ◽  
Katarzyna Smędzik-Ambroży ◽  
Bazyli Czyżewski ◽  
Sebastian Stępień

The aim of this paper is to determine the influence of the Common Agricultural Policy’s (CAP) subsidies on the level of economic sustainability of farms by means of three-fold study. To determine the economic sustainability of farms the authors applied the income gap ratio. Next, the level of income differentiation between farms of various economic classes was established. The last part consisted of the recognition of statistically significant CAP schemes that shape agricultural income in farms of different size and in assessing how the respective subsidies should increase or decrease to fill the recognized gap, based on the coefficients of panel regression. The spatial scope covered all EU countries in 2005–2015. Results show that due to the CAP’s support the average income of farms has approached the average non-agricultural income, but distribution of this support favored the largest farms, increasing disparities within the sector.


Empirica ◽  
2012 ◽  
Vol 40 (2) ◽  
pp. 325-341 ◽  
Author(s):  
Franz Sinabell ◽  
Erwin Schmid ◽  
Markus F. Hofreither

Ekonomika ◽  
2004 ◽  
Vol 68 ◽  
Author(s):  
Remigijus Čiegis

Sustainable agriculture synthesizes a variety of concepts associated with agricultural practices and their socio-economic impacts. In this article, some-requirements, for the development of sustainable-agriculture in Lithuania are analysed within the ecological economics framework. First, sustainable agriculture is discussed within the context of environmental economics. After this more theoretical part, the Common Agricultural Policy reforms, trends of sustainable agriculture in EU and requirements for the development of sustainable agriculture in Lithuania are elaborated.


2011 ◽  
Vol 15 (5) ◽  
pp. 25-30 ◽  
Author(s):  
Jose Luis Alfaro-Navarro ◽  
Jose Mondejar-Jimenez ◽  
Manuel Vargas-Vargas ◽  
Juan Carlos Gazquez-Abad ◽  
Jose Felipe Jimenez- Guerrero

The Common Agricultural Policy (the CAP) is the most important common policy of the European Union, for which reason it traditionally monopolizes a large part of the European Union budget. Without doubt, the aids that farms receive from this policy are the pillar on which it sustains the battered agricultural sectors. Among CAP aid, direct payments are particularly important, in 2008 accounting for about 37% of the total EU budget. The main objective of this paper is to analyse the effects that the distribution of the CAP direct payments have on the agrarian economy. Specifically, we have analysed the equality level in distribution of CAP direct aid in the countries of the European Union using a concentration index. In this way, we have examined the fairness of distribution of CAP direct aid in the agricultural sector.


2020 ◽  
Vol 60 (2) ◽  
pp. 7-20
Author(s):  
Katarzyna Kocur-Bera

Instruments promoting rural development have been implemented by many countries. Areabased payments for farmers allocated under the Common Agricultural Policy constitute one of such instruments in the European Union. The support system for rural areas, including the size of the declared reference parcels, is monitored as part of the cross-compliance mechanism. Parcels with unfavorable landuse patterns are more difficult to farm. According to estimates, more than 30% of agricultural farms in Poland fall into this category. This study proposes a universal algorithm for controlling the information submitted by farmers in payment applications. More than 76,000 applications were analyzed, and farms with the defective spatial structure of land were randomly selected. The results show that most errors occur in the case of land parcels situated the farthest from a farm holding (declared in the application), but the analysis revealed no strong correlation in this respect.


2012 ◽  
Vol 11 (2) ◽  
pp. 83 ◽  
Author(s):  
María Blanco Fonseca ◽  
Sol García-Germán Trujeda ◽  
Isabel Bardají

<p>Following their introduction in 1992,direct payments have become one of the main instruments of the Common Agricultural Policy. The aim of this study is to analyse potential scenarios of harmonization of direct payments in the CAP post-2013. In doing so, we use the CAPRI model, which represents the functioning of agricultural markets at the global level and simultaneously models CAP measures at the EU regional level. Results suggest that while a flatter rate of direct payments would have minor impacts on agriculture at the EU level, it would imply substantial redistributive effects, both across regions and Member States.</p>


EuroChoices ◽  
2019 ◽  
Vol 19 (1) ◽  
pp. 48-52 ◽  
Author(s):  
Marius Michels ◽  
Johannes Möllmann ◽  
Oliver Musshoff

2019 ◽  
Vol 78 ◽  
pp. 116-135
Author(s):  
Tomasz Drabik

The aim of this study is to present the instruments of direct support after 2020. The article presents the history of direct payments since their establishment in 1992 to today’s model of direct support that agricultural producers receive. The study also presents the position of the Polish Government regarding legislative proposals of the Common Agricultural Policy after 2020.


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