Direct Payments Distribution Between Farmers in Selected New EU Member States
DOI:
https://doi.org/10.7160/aol.2022.140408How to Cite
Abstract
The study aims to identify the degree of direct payments concentration in selected Central and Eastern European Member States (compared to the entire EU) and outline the perspectives and recommendations for the next programming period. The spatial scope of the study includes Poland, the Czech Republic, Hungary and Bulgaria. The time scope covers the period 2009–2019. The survey indicates that the payments distribution in Bulgaria, the Czech Republic, Hungary, and to a lesser extent also in Poland, is highly unbalanced. The analysed countries used the redistribution instruments, optional for the Member States, which were introduced by the 2013 CAP reform, to a moderate extent, in order to ensure a more even funds distribution between the beneficiaries. It cannot be ruled out that instruments ensuring a more even funds distribution would be politically easier to introduce at the EU level than at the national level. Nevertheless, also in the next financial perspective, in line with the subsidiarity principle, this issue is left to the Member States.References
Alvaredo, F. (2011) "A note on the relationship between top income shares and the Gini coefficient", Economics Letters, Vol. 110, No. 3, pp. 274-277. ISSN 0165-1765. DOI: https://doi.org/10.1016/j.econlet.2010.10.008
Anania, G. and Pupo D’Andrea, M. R. (2015) "The 2013 Reform of the Common Agricultural Policy", In J. Swinnen (Eds.) "The Political Economy of the 2014–2020 Common Agricultural Policy. An Imperfect Storm", pp. 33-86. Brussels, Centre for European Policy Studies. [Online]. Available: https://www.ceps.eu/ceps-publications/political-economy-2014-2020-common-agricultural-policy-imperfect-storm/ [Accessed: Feb. 17,2022].
Beluhova-Uzunova, R., Atanasov, D. and Hristov, K. (2017) "Analisys of direct payments distribution in Bulgarian agriculture", Trakia Journal of Sciences, Vol. 15, Suppl. 1, pp. 282-287. ISSN 1313-3551. DOI: https://doi.org/10.15547/tjs.2017.s.01.051
Beluhova-Uzunova, R., Atanasov, D. and Shishkova, M. (2020) "Distribution of Direct Payments in Bulgaria – Policy Lessons and Prospects Beyond 2020", Scientific Papers. Series ‘Management, Economic Engineering in Agriculture and Rural Development’, Vol. 20, No. 2, pp. 53-59. ISSN 2285-3952.
Bojnec, Š. and Fertő, I. (2015) "Are new EU Member States catching up with older ones on global agri-food markets?", Post-Communist Economies, Vol. 27, No. 2, pp. 205-215. ISSN 1465-3958. DOI: https://doi.org/10.1080/14631377.2015.1026690
Ciliberti, S. and Frascarelli, A. (2015) "A critical assessment of the implementation of CAP 2014–2020 direct payments in Italy", Bio-Based and Applied Economics, Vol. 4, No. 3, pp. 261-277. ISSN 2280-6172. DOI: https://doi.org/10.13128/BAE-16377
Csaki, C. and Jambor, A. (2009) "The Diversity of Effects of EU Membership on Agriculture in New Member States", Policy Studies on Rural Transition, Vol. 4, 44 p. FAO Regional Office for Europe and Central Asia [Online]. Available: https://www.fao.org/publications/card/es/c/eea2f8ce-65f6-503d-946a-bbb43334089b/ [Accessed: Feb. 2, 2022].
Csaki, C. and Jambor, A. (2016) "Ten Years of EU Membership: How Agricultural Performance Differs in the New Member States", EuroChoices, Vol. 15, No. 2, pp. 35-41. ISSN 1746-692X. DOI: https://doi.org/10.1111/1746-692X.12107
Czyżewski, B. and Smędzik-Ambroży, K. (2017) "The regional structure of the CAP subsidies and the factor productivity in agriculture in the EU 28", Agricultural Economics, Vol. 63, No. 4, pp. 149-163. ISSN 1805-9295. DOI: https://doi.org/10.17221/302/2015-AGRICECON
Deppermann, A., Offermann, F. and Grethe, H. (2016) "Redistributive effects of CAP liberalisation: From the sectoral level to single farm", Journal of Policy Modeling, Vol. 38, No. 1, pp. 26-43. ISSN 0161-8938. DOI: https://doi.org/10.1016/j.jpolmod.2015.11.002
Espinosa, M., Louhichi, K., Perni, A. and Ciaian, P. (2020) "EU-Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm-Level Analysis", Applied Economic Perspectives and Policy, Vol. 42, No. 4, pp. 695-715. ISSN 2040-5804. DOI: https://doi.org/10.1093/aepp/ppz021
European Commission (2011) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 1782/2003 and Council Regulation (EC) No 73/2009 (financial year 2010)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission. (2012) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No 1782/2003 and Council Regulation (EC) No. 73/2009 (financial year 2011)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb.15, 2022].
European Commission (2013) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 1782/2003 and Council Regulation (EC) No. 73/2009 (financial year 2012)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2014) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 1782/2003 and Council Regulation (EC) No. 73/2009 (financial year 2013)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2015) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 73/2009 (financial year 2014)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2016) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 73/2009 (financial year 2015)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2017) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No 1307/2013 (financial year 2016)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2018) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No. 1307/2013 (financial year 2017)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2019a) "Direct payments post 2014 – Decisions taken by Member States. State of play as from December 2018. Information note". [Online]. Available: https://ec.europa.eu/info/sites/default/files/food-farming-fisheries/key_policies/documents/simplementation-decisions-ms-2018_en.pdf [Accessed: Feb. 17, 2022].
European Commission (2019b) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No 1307/2013 (financial year 2018)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2020) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No 1307/2013 (financial year 2019)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Commission (2021) "Indicative figures on the distribution of aid, by size-class of aid, received in the context of direct aid paid to the producers according to Council Regulation (EC) No 1307/2013 (financial year 2020)". [Online]. Available: https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/financing-cap/beneficiaries/direct-aid-breakdown_en [Accessed: Feb. 15, 2022].
European Parliament and Council of the European Union (2013) "Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No. 637/2008 and Council Regulation (EC) No. 73/2009". [Online]. Available: https://eur-lex.europa.eu/legal-content/en/ALL/?uri=CELEX%3A32013R1307 [Accessed: Feb. 17, 2022].
Eurostat (2022) "Farm indicators by agricultural area, type of farm, standard output, legal form and NUTS 2 regions". [Online]. Available: https://ec.europa.eu/eurostat/databrowser/view/ef_m_farmleg/default/table?lang=en [Accessed: Oct. 19, 2022].
Feher, A., Goșa, V., Raicov, M., Haranguș, D. and Condea, B.V. (2017) "Convergence of Romanian and Europe Union agriculture – evolution and prospective assessment", Land Use Policy, Vol. 67, pp. 670-678. ISSN 0264-8377. DOI: https://doi.org/10.1016/j.landusepol.2017.06.016
Grochowska, R., Pawłowska, A. and Skarżyńska, A. (2021) "Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020", Agricultural Economics, Vol. 67, No. 5, pp. 181-188. ISSN 1805-9295. DOI: https://doi.org/10.17221/417/2020-AGRICECON
Janovska, V., Simova, P., Vlasak, J. and Sklenicka, P. (2017) "Factors affecting farm size on the European level and the national level of the Czech Republic", Agricultural Economics, Vol. 63, No. 1, pp. 1-12. ISSN 1805-9295. DOI: https://doi.org/10.17221/317/2015-AGRICECON
Kazukauskas, A., Newman, C. and Sauer, J. (2014) "The impact of decoupled subsidies on productivity in agriculture: A cross-country analysis using microdata", Agricultural Economics, Vol. 45, No. 3, pp. 327-336. ISSN 1574-0862. DOI: https://doi.org/10.1111/agec.12068
Kryszak, Ł. (2016) "Income inequalities in agriculture in European Union member states in the context of sustainable development concept", Annals of the Polish Association of Agricultural and Agribusiness Economists, Vol. 18, No. 2, pp. 166-171. ISSN 2657-7828.
Ministry of Agriculture, Food and Forestry (2021) "Census of agricultural holdings in 2020 – Preliminary results". [Online]. Available: https://www.mzh.government.bg/media/filer_public/2021/12/09/publication_preliminary_data_census_2020_en.pdf [Accessed: 4 Apr. 2022].
Minviel, J. J. and Latruffe, L. (2017) "Effect of public subsidies on farm technical efficiency: A meta-analysis of empirical results", Applied Economics, Vol. 49, No. 2, pp. 213-226. ISSN 1466-4283. DOI: https://doi.org/10.1080/00036846.2016.1194963
Official Journal of the European Union (2016) "Consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union". [Online]. Available: http://data.europa.eu/eli/treaty/tfeu_2012/oj [Accessed: Feb. 2, 2022].
Ogwang, T. and Rao, U.L.G. (2000) "Hybrid models of the Lorenz curve", Economics Letters, Vol. 69, No. 1, pp. 39-44. ISSN 0165-1765. DOI: https://doi.org/10.1016/S0165-1765(00)00274-3
Piet, L. and Desjeux, Y. (2021) "New perspectives on the distribution of farm incomes and the redistributive impact of CAP payments", European Review of Agricultural Economics, Vol. 48, No. 2, pp. 385-414. ISSN 1464-3618. DOI: https://doi.org/10.1093/erae/jbab005
Podgórski, J. (2010) "Statystyka dla studiów licencjackich", Warszawa, Polskie Wydawnictwo Ekonomiczne, p. 468. ISBN 978-83-208-1839-0. (In Polish).
Sadłowski, A. (2017a) "Distribution of funds under the direct support scheme between beneficiaries – analysis of inequality and redistributive instruments introduced in 2015", Problems of Agricultural Economics, Vol. 353, No. 4, pp. 169-187. ISSN 0044-1600. DOI: https://doi.org/10.30858/zer/84962
Sadłowski, A. (2017b) "Disparities in levels of direct payments in EU Member States", Optimum. Economic Studies, Vol. 6, No. 90, pp. 152-170. ISSN 1506-7637. DOI: https://doi.org/10.15290/ose.2017.06.90.12
Sadłowski, A. (2020) "The planned reform of the Common Agricultural Policy with particular reference to the direct support system", Agricultural Economics, Vol. 66, No. 8, pp. 381-390. ISSN 1805-9295. DOI: https://doi.org/10.17221/397/2019-AGRICECON
Sadłowski, A. (2022) "Targeting the redistributive payment in selected new European Union member states", Journal of Business Economics and Management, Vol. 23, No. 2, pp. 327-342. ISSN 1611-1699. DOI: https://doi.org/10.3846/jbem.2022.16238
Sadłowski, A., Wrzaszcz, W., Smędzik-Ambroży, K., Matras-Bolibok, A., Budzyńska, A., Angowski, M. and Mann, S. (2021) "Direct Payments and Sustainable Agricultural Development – The Example of Poland", Sustainability, Vol. 13, No. 23, pp. 1-20. ISSN 2071-1050. DOI: https://doi.org/10.3390/su132313090
Severini, S. and Tantari, A. (2013) "The effect of the EU farm payments policy and its recent reform on farm income inequality", Journal of Policy Modeling, Vol. 35, No. 2, pp. 212-227. ISSN 0161-8938. DOI: https://doi.org/10.1016/j.jpolmod.2012.12.002
Severini, S. and Tantari, A. (2015) "The distributional impact of agricultural policy tools on Italian farm household incomes", Journal of Policy Modeling, Vol. 37, No. 1, pp. 124-135. ISSN 0161-8938. DOI: https://doi.org/10.1016/j.jpolmod.2015.01.004
Sinabell, F., Schmid, E. and Hofreither, M.F. (2013) "Exploring the distribution of direct payments of the Common Agricultural Policy", Empirica, Vol. 40, No. 2, pp. 325-341. ISSN 1573-6911. DOI: https://doi.org/10.1007/s10663-012-9194-7
Staniszewski, J. and Borychowski, M. (2020) "The impact of the subsidies on efficiency of different sized farms. Case study of the Common Agricultural Policy of the European Union", Agricultural Economics, Vol. 66, No. 8, pp. 373-380. ISSN 1805-9295. DOI: https://doi.org/10.17221/151/2020-AGRICECON
Starzyńska, W. (2012) "Statystyka praktyczna", Warszawa, Wydawnictwo Naukowe PWN, p. 358, ISBN 978-83-01-15292-5. (In Polish).
Szerletics, Á. (2018) "Degressivity, capping and European farm structure: New evidence from Hungary", Studies in Agricultural Economics, Vol. 120, No. 2, pp. 80-86. ISSN 2063-0476. DOI: https://doi.org/10.7896/j.1811
Volkov, A., Balezentis, T., Morkunas, M. and Streimikiene, D. (2019a) "In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?", Sustainability, Vol. 11, No. 12, pp. 1-15. ISSN 2071-1050. DOI: https://doi.org/10.3390/su11123462
Volkov, A., Balezentis, T., Morkunas, M. and Streimikiene, D. (2019b) "Who Benefits from CAP? The Way the Direct Payments System Impacts Socioeconomic Sustainability of Small Farms", Sustainability, Vol. 11, No. 7, pp. 1-17. ISSN 2071-1050. DOI: https://doi.org/10.3390/su11072112
World Bank (2022) "Agriculture, forestry, and fishing, value added (% of GDP)". [Online]. Available: https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS [Accessed: Oct. 19, 2022].








