scholarly journals “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities

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.

2016 ◽  
Vol 2 (319) ◽  
Author(s):  
Michał Soliwoda

EU subsidies influence the economic and financial situation of farms through several complex channels, although their economic and financial impact may be observed with a delay. The aim of this study was to assess the impact of selected support instruments of the Common Agricultural Policy, CAP (including direct payments and subsidies from Pillar 2) on economic and financial stability (respectively, the level of net farm income and debt/asset ratio) of farms in EU countries at regional level. The research goals included: (1) to present differences in the level and the structure of instruments of CAP support (excluding investment subsidies) at the level of member states; (2) to determine significance, strength and direction of the relationship between amounts of subsidies received and selected indicators of economic and financial stability of farms. The Farm Accountancy Data Network (FADN) database provided secondary data for the study. The dynamics of changes was analyzed for years 2007 and 2012. At the country level, the share of subsidies related to rural development programs gradually increased during the years 2007–2012. A weighted regression approach with correction of heteroscedasticity (a total of four models) was employed separately for the 2007 and 2012 (based on data from the FADN regions). Although subsidies (excluding for investment) under the CAP influenced quite strongly the level of agricultural income, the impact of subsidies on the financial stability was ambiguous. This may lead to the refinement of regional approach in relation to the selection of support instruments and the determination of the amounts of support provided under the CAP.


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.


2020 ◽  
Vol 29 (2) ◽  
pp. 37
Author(s):  
Beata Jeżyńska

<p>The need to keep the expected level of production in agriculture generates a serious burden on the environment. The most important environmental factors exposed to the impact of agriculture include biodiversity and water, air, and soil quality. Assessments of all these environmental aspects related to agricultural production are negative. The condition of the agricultural environment has been subject to rapid deterioration. In such a situation, environmental instruments have drawn particular attention from the European legislature when developing new guidelines of the Common Agricultural Policy to be applicable after 2020.</p>


Rural History ◽  
1990 ◽  
Vol 1 (2) ◽  
pp. 265-280 ◽  
Author(s):  
Brian Burkitt ◽  
Mark Baimbridge

United Kingdom (UK) accession into the European Economic Community (EEC), which became a political likelihood in 1970 and an actuality in 1973, led to a major change in agricultural policy away from a deficiency payments system supporting farmers' incomes towards the Common Agricultural Policy (CAP) method of assistance through farm prices above the market level. Such a basic alteration in government activity not only imposed well-known and thoroughly researched costs on the British economy in the form of higher food prices and an additional burden of protection, it also undermined dominant post-1945 historical trends.Firstly, it reversed a thirty year old process towards greater British self-sufficiency Between 1938 and 1946 UK agricultural production rose in value from 42% to 52% of the country's food imports, while under the deficiency payments scheme, permanently established in peacetime by the 1947 Agriculture Act, the proportion of UK food consumption supplied by domestic producers grew steadily until it reached a level of just under 72% in 1972. EEC membership, involving compulsory adoption of the CAP, initially reversed this movement; British agricultural self-sufficiency fell to 66% in 1977, the year when the Common External Tariff (CET) was first applied in full. The higher import bill that inevitably resulted imposed a severe strain on the UK balance of payments, estimated by the pro-market. Heath government in 1970 at a net annual deterioration in the range of 18% to 26%.


1996 ◽  
Vol 6 ◽  
pp. 95-98
Author(s):  
L.R. Mytton

An analysis is made of the main factors influencing nitrogen use in the European Union (EU). The Common Agricultural Policy (CAP) is identified as a major factor. A brief explanation is given of its functions and of recent reforms which are aimed at reducing overproduction. These reforms should favour more efficient use of nitrogen. The reasons why this is difficult to achieve are explained and the major factors influencing our ability to balance the nitrogen economies of food production are identified. The interrelationship between these factors is then used to predict the impact of CAP reforms on research, on fertiliser use and on the wider use of legumes. Keywords: Common Agricultural Policy, Europe, farm subsidies, legumes, nitrogen cycle, nitrogen fertiliser, nitrogen fixation, over-production, pollution, soil organic matter


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):  
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.


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