DIFFERENTIATION OF BUDGET SUPPORT FARMS IN THE EUROPEAN UNION

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DIFFERENTIATION OF BUDGET SUPPORT FARMS IN THE EUROPEAN UNION

Journal Title: Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu - Year 2016, Vol 18, Issue 6

Abstract

The current policy of external financial support households undoubtedly exert a positive influence on agricultural incomes in the EU. This effect was varied due to the different levels of financial support. Recent changes in the common agricultural policy caused the reduction of subsidies dedicated to income support, while the part of support aimed to offset additional costs occurring on farms was increased (additional costs related to the expansion of their services for the benefit of the environment and other public goods). This direction of changes weakens the role of subsidies in the development of agricultural income, but still most of the financing is directed to farms for the purpose of stabilizing their income. In consideration of possible liquidation or significant reduction of external financial support from the budget should keep in mind the consequences for the development of the agricultural income.<br/><br/>

Authors and Affiliations

Henryk Runowski

Keywords

common agricultural policy agricultural farms financial support EU countries JEL codes: F36

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EP ID EP385280
DOI -
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