Targeting the redistributive payment in selected new European Union member states
Abstract
The most important element in the recent reform of the Common Agricultural Policy, which is intended to reduce the concentration of aid distributed under the direct support system, is the so-called redistributive payment. The redistributive effects of this instrument depend on its specific form implemented at the national level, the level of funding, and the area structure of holdings in a given country. The objective of this paper is to compare the targeting of the support distributed under the redistributive payment in the three new Member States of the European Union – Bulgaria, Lithuania and Poland. In order to achieve this objective, it was established which area groups of holdings benefit from (and which lose out on) the application of the redistributive payment in each country. In addition, the average amount of support for a holding per hectare of agricultural area, and the percentage change in this support due to the introduction of the redistributive payment, depending on the size of the holding, in individual countries, are shown as a function. The source material was the data made available by the ministries of agriculture of the countries under analysis, relating to 2018.
Keyword : Common Agricultural Policy, direct payments, direct support system, redistributive payment, single area payment, concentration of direct support, level of direct payments
How to Cite
Sadłowski, A. . (2022). Targeting the redistributive payment in selected new European Union member states. Journal of Business Economics and Management, 23(2), 327–342. https://doi.org/10.3846/jbem.2022.16238
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Deppermann, A., Offermann, F., & Grethe, H. (2016). Redistributive effects of CAP liberalisation: From the sectoral level to the single farm. Journal of Policy Modeling, 38(1), 26–43. https://doi.org/10.1016/j.jpolmod.2015.11.002
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Graca-Gelert, P. (2014). The impact of European funds on income inequality in Poland – the example of direct payments and structural pensions. Social Inequalities and Economic Growth, 38(2), 180–190.
Grochowska, R., Pawłowska, A., & Skarżyńska, A. (2021). Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020. Agricultural Economics, 67(5), 181–188. https://doi.org/10.17221/417/2020-AGRICECON
Hansen, H., & Offermann, F. (2016). Direktzahlungen in Deutschland – Einkommens- und Verteilungswirkungen der EU-Agrarreform 2013. German Journal of Agricultural Economics, 65(2), 77–93.
Ivanov, B., Malamova, N., & Sokolova, E. (2015, October 7–8). The new direct payments paradigm in the CAP 2014–2020: economic effects of “green” and redistributive payments on Bulgarian agriculture. Paper prepared for presentation at the 147th EAAE Seminar “CAP Impact on Economic Growth and Sustainability of Agriculture and Rural Areas”. Sofia, Bulgaria.
Jankowska, A. (2015). Direct paymants concentration in the countries of central and eastern Europe in the year 2012. Annals of the Polish Association of Agricultural and Agribusiness Economists, 17(4), 98–103.
Keeney, M. (2000). The distributional impact of direct payments on Irish farm incomes. Journal of Agricultural Economics, 51(2), 252–265. https://doi.org/10.1111/j.1477-9552.2000.tb01227.x
Kwasowski, M., & Zaleski, S. (2009). Die Landwirtschaft in Polen fünf Jahre nach dem Beitritt zur Europäischen Union. Polen-Analysen, 51, 2–7. https://doi.org/10.31205/PA.051.01
Matthews, A. (2013). Implications of the new redistributive payment. http://capreform.eu/implications-of-the-new-redistributive-payment/
Potori, N., Kovács, M., & Vásáry, V. (2013). The common agricultural policy 2014–2020: an impact assessment of the new system of direct payments in Hungary. Studies in Agricultural Economics, 115(3), 118–123.
Sadłowski, A. (2017). Distribution of funds under the direct support scheme between beneficiaries – analysis of inequality and redistributive instruments introduced in 2015. Problems of Agricultural Economics, 353(4), 169–187. https://doi.org/10.30858/zer/84962
Sadłowski, A. (2018). Optional payments of the first pillar under CAP vs the average amount of support per farm. Economic and Regional Studies, 11(3), 148–161. https://doi.org/10.2478/ers-2018-0031
Sadłowski, A. (2020a). Einfluss der fakultativen Direktzahlungen auf die durchschnittliche Höhe der Stützung für einen landwirtschaftlichen Betrieb in Polen in regionaler Perspektive. Berichte über Landwirtschaft, 98(3), 1–24.
Sadłowski, A. (2020b). The planned reform of the Common Agricultural Policy with particular reference to the direct support system. Agricultural Economics, 66(8), 381–390. https://doi.org/10.17221/397/2019-AGRICECON
Sahrbacher, Ch. (2011, October 4–6). Auswirkungen einer Obergrenze für Direktzahlungen an Großlandwirte. 21. Jahrestagung der Österreichischen Gesellschaft für Agrarökonomie. Bolzano, Italy.
Severini, S., & Tantari, A. (2013a). The effect of the EU farm payments policy and its recent reform on farm income inequality. Journal of Policy Modeling, 35(2), 212–227. https://doi.org/10.1016/j.jpolmod.2012.12.002
Severini, S., & Tantari, A. (2013b). The impact of agricultural policy on farm income concentration: The case of regional implementation of the CAP direct payments in Italy. Agricultural Economics, 44(3), 275–286. https://doi.org/10.1111/agec.12010
Severini, S., & Tantari, A. (2015). Which factors affect the distribution of direct payments among farmers in the EU Member States? Empirica, 42, 25–48. https://doi.org/10.1007/s10663-013-9243-x
Sinabell, F., Schmid, E., & Hofreither, M. F. (2019). The distribution of direct payments of the common agricultural policy. Jahrbuch der Österreichischen Gesellschaft für Agrarökonomie, 18(1), 111–119.
Šlajs, J., & Doucha, T. (2014). Situation in the Czech agriculture after 9 years of EU accession – a research position to strategic challenges for a future policy after 2013. Problems of Agricultural Economics, 338(1), 116–127.
Von Witzke, H., & Noleppa, S. (2007). Agricultural and trade policy reform and inequality: The distributive effects of direct payments to German farmers under the EU’s new common agricultural policy (Working Paper No. 79/2007). Albrecht Daniel Thaer-Institut für Agrar- und Gartenbauwissenschaften, Humboldt-Universität zu Berlin. http://doi.org/10.22004/ag.econ.10289
Wilkin, J. (2009). The political economics of the common agricultural policy reform. The Polish Journal of Economics, 229(1–2), 1–25. https://doi.org/10.33119/GN/101222
Zawojska, A. (2006). Socio-economic aspects of EU direct payments. Annals of the Polish Association of Agricultural and Agribusiness Economists, 8(4), 400–404.
Allanson, P. (2006). On the characterisation and measurement of the redistributive effects of agricultural policy (Dundee Discussion Papers in Economics, 188). University of Dundee.
Baisakova, N., & Herzfeld, T. (2014). Aspekte der Agrarpolitik 2013. German Journal of Agricultural Economics, 63(Suppl.), 1–11.
Beluhova-Uzunova, R., Atanasov, D., & Hristov, K. (2017). Analisys of direct payments distribution in Bulgarian agriculture. Trakia Journal of Sciences, 15(Suppl. 1), 282–287. https://doi.org/10.15547/tjs.2017.s.01.051
Beluhova-Uzunova, R., Atanasov, D., & Shishkova, M. (2019). Direct payments in Bulgaria – Trends and perspectives. Bulgarian Journal of Agricultural Economics and Management, 64(3), 42–50.
Beluhova-Uzunova, R., Atanasov, D., & 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, 20(2), 53–59.
Chatellier, V. (2018, Jun 20–21). Le paiement redistributif et le plafonnement des aides directes: deux outils de la PAC favorables aux petites exploitations agricoles françaises? Colloque de la SFER “Politiques agricoles et alimentaires: trajectoires et réformes”. Montpellier, France.
Ciliberti, S., & Frascarelli, A. (2015, October 7–8). The role of CAP in enhancing farm incomes: The redistributive effect of direct payments in Italy. Paper prepared for presentation at the 147th EAAE Seminar “CAP Impact on Economic Growth and Sustainability of Agriculture and Rural Areas”. Sofia, Bulgaria.
Czyżewski, A., & Stępień, S. (2011). Common agricultural policy of the EU after 2013 and the interests of the Polish agriculture. Ekonomista, 1, 9–36.
Deppermann, A., Offermann, F., & Grethe, H. (2016). Redistributive effects of CAP liberalisation: From the sectoral level to the single farm. Journal of Policy Modeling, 38(1), 26–43. https://doi.org/10.1016/j.jpolmod.2015.11.002
European Commission. (2016). Redistributive payment. https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/key_policies/documents/ds-dp-redistributive-payment_en.pdf
European Commission. (2018). Direct payments. https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/farming/documents/direct-payments_en.pdf
European Commission. (2019). Direct payments. Eligibility for direct payments of the Common Agricultural Policy. https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/key_policies/documents/direct-payments-eligibility-conditions_en.pdf
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 (OJ L 347, 20.12.2013, p. 608, and its subsequent amendments).
Eurostat. (2021). Farm indicators by agricultural area, type of farm, standard output, legal form and NUTS 2 regions. Retrieved April 24, 2021, from https://ec.europa.eu/eurostat/databrowser/view/ef_m_farmleg/default/table?lang=en
Forstner, B., Duden, Ch., Ellßel, R., Gocht, A., Hansen, H., Neuenfeldt, S., Offermann, F., & de Witte, T. (2018). Wirkungen von Direktzahlungen in der Landwirtschaft – ausgewählte Aspekte mit Bezug zum Strukturwandel (Thünen Working Paper, 96). https://doi.org/10.3220/WP1524561399000
Graca-Gelert, P. (2014). The impact of European funds on income inequality in Poland – the example of direct payments and structural pensions. Social Inequalities and Economic Growth, 38(2), 180–190.
Grochowska, R., Pawłowska, A., & Skarżyńska, A. (2021). Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020. Agricultural Economics, 67(5), 181–188. https://doi.org/10.17221/417/2020-AGRICECON
Hansen, H., & Offermann, F. (2016). Direktzahlungen in Deutschland – Einkommens- und Verteilungswirkungen der EU-Agrarreform 2013. German Journal of Agricultural Economics, 65(2), 77–93.
Ivanov, B., Malamova, N., & Sokolova, E. (2015, October 7–8). The new direct payments paradigm in the CAP 2014–2020: economic effects of “green” and redistributive payments on Bulgarian agriculture. Paper prepared for presentation at the 147th EAAE Seminar “CAP Impact on Economic Growth and Sustainability of Agriculture and Rural Areas”. Sofia, Bulgaria.
Jankowska, A. (2015). Direct paymants concentration in the countries of central and eastern Europe in the year 2012. Annals of the Polish Association of Agricultural and Agribusiness Economists, 17(4), 98–103.
Keeney, M. (2000). The distributional impact of direct payments on Irish farm incomes. Journal of Agricultural Economics, 51(2), 252–265. https://doi.org/10.1111/j.1477-9552.2000.tb01227.x
Kwasowski, M., & Zaleski, S. (2009). Die Landwirtschaft in Polen fünf Jahre nach dem Beitritt zur Europäischen Union. Polen-Analysen, 51, 2–7. https://doi.org/10.31205/PA.051.01
Matthews, A. (2013). Implications of the new redistributive payment. http://capreform.eu/implications-of-the-new-redistributive-payment/
Potori, N., Kovács, M., & Vásáry, V. (2013). The common agricultural policy 2014–2020: an impact assessment of the new system of direct payments in Hungary. Studies in Agricultural Economics, 115(3), 118–123.
Sadłowski, A. (2017). Distribution of funds under the direct support scheme between beneficiaries – analysis of inequality and redistributive instruments introduced in 2015. Problems of Agricultural Economics, 353(4), 169–187. https://doi.org/10.30858/zer/84962
Sadłowski, A. (2018). Optional payments of the first pillar under CAP vs the average amount of support per farm. Economic and Regional Studies, 11(3), 148–161. https://doi.org/10.2478/ers-2018-0031
Sadłowski, A. (2020a). Einfluss der fakultativen Direktzahlungen auf die durchschnittliche Höhe der Stützung für einen landwirtschaftlichen Betrieb in Polen in regionaler Perspektive. Berichte über Landwirtschaft, 98(3), 1–24.
Sadłowski, A. (2020b). The planned reform of the Common Agricultural Policy with particular reference to the direct support system. Agricultural Economics, 66(8), 381–390. https://doi.org/10.17221/397/2019-AGRICECON
Sahrbacher, Ch. (2011, October 4–6). Auswirkungen einer Obergrenze für Direktzahlungen an Großlandwirte. 21. Jahrestagung der Österreichischen Gesellschaft für Agrarökonomie. Bolzano, Italy.
Severini, S., & Tantari, A. (2013a). The effect of the EU farm payments policy and its recent reform on farm income inequality. Journal of Policy Modeling, 35(2), 212–227. https://doi.org/10.1016/j.jpolmod.2012.12.002
Severini, S., & Tantari, A. (2013b). The impact of agricultural policy on farm income concentration: The case of regional implementation of the CAP direct payments in Italy. Agricultural Economics, 44(3), 275–286. https://doi.org/10.1111/agec.12010
Severini, S., & Tantari, A. (2015). Which factors affect the distribution of direct payments among farmers in the EU Member States? Empirica, 42, 25–48. https://doi.org/10.1007/s10663-013-9243-x
Sinabell, F., Schmid, E., & Hofreither, M. F. (2019). The distribution of direct payments of the common agricultural policy. Jahrbuch der Österreichischen Gesellschaft für Agrarökonomie, 18(1), 111–119.
Šlajs, J., & Doucha, T. (2014). Situation in the Czech agriculture after 9 years of EU accession – a research position to strategic challenges for a future policy after 2013. Problems of Agricultural Economics, 338(1), 116–127.
Von Witzke, H., & Noleppa, S. (2007). Agricultural and trade policy reform and inequality: The distributive effects of direct payments to German farmers under the EU’s new common agricultural policy (Working Paper No. 79/2007). Albrecht Daniel Thaer-Institut für Agrar- und Gartenbauwissenschaften, Humboldt-Universität zu Berlin. http://doi.org/10.22004/ag.econ.10289
Wilkin, J. (2009). The political economics of the common agricultural policy reform. The Polish Journal of Economics, 229(1–2), 1–25. https://doi.org/10.33119/GN/101222
Zawojska, A. (2006). Socio-economic aspects of EU direct payments. Annals of the Polish Association of Agricultural and Agribusiness Economists, 8(4), 400–404.