scholarly journals PAYMENTS FOR PUBLIC GOODS UNDER THE COMMON AGRICULTURAL POLICY VERSUS MARKET FAILURES

2018 ◽  
Author(s):  
Bazyli CZYŻEWSKI ◽  
Sebastian STĘPIEŃ ◽  
Jan POLCYN
Keyword(s):  
Public Goods ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Developmental Model ◽  
Market Failures ◽  
Economic Surplus ◽  
The Eu

In the reality of the marketplace, a situation often arises where an economic surplus (rent) achieved by agricultural producers is partly taken over by related non-agricultural sectors. In this sense the category of economic rent embraces market failures related to such factors as price flexibility, and thus represents an effect of the misallocation of resources in the agricultural sector. The question therefore arises of whether there exists a developmental model of agriculture in which such market failures would be reduced. Apparently the only coherent response to this need is action taken under the paradigm of sustainable agriculture. This type of model for the sector’s functioning is supported by the objectives of the European Union’s Common Agricultural Policy (CAP), including through support for the supply of public goods in rural areas. This article addresses the question of whether CAP payments for public goods are a desirable systemic solution serving to reduce market failures. It is hypothesised that the financing of activity relating to the supply of public goods lessens the negative impact of the “market treadmill”, since it reduces the unexpected outflows of economic surplus away from farms, caused by agricultural prices. To verify the hypothesis, a panel regression analysis was performed on three sets: the EU-15 countries, the EU-12 countries, and – within Poland – subsectors of farms from six standard output classes. The analysis covered the years 2004–2012. The results of the computations provided confirmation of the hypothesis. It may be stated that an increase in the level of payments for public goods, as a percentage of total subsidies to agriculture, leads on average to a reduction in the drainage of economic rents through prices. It was also found that the financing of public goods under the CAP is more effective in reducing market failures in the EU-15 countries than in the EU-12.

scholarly journals GRANTING STATE AID IN THE AGRICULTURE SECTOR

2021 ◽  
Vol 19 (1) ◽  
pp. 5-15
Author(s):  
Peter Bajzík ◽  
◽  
Peter Nováček
Keyword(s):  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Slovak Republic ◽  
Internal Market ◽  
State Aid ◽  
Market Failures ◽  
Agriculture Sector ◽  
The Government

The economic aid granted in the agricultural environment is the subsystem of State Aid, that represents the economic instrument for the strengthening of competitiveness of agriculture and for creating new jobs in the agricultural sector. State Aid promoting the economic development of the agricultural and forestry sectors and of rural areas is embedded in the broader Common Agricultural Policy. State Aid or subsidies is a legal term for money given from the state budget in direct or indirect form. However, despite a general prohibition of granting State Aid by national authorities in EU member states , State Aid may be necessary to address market failures in order to ensure a well-functioning EU internal market. State Aid can only be justified if it is in line with the principles of the internal market and with the principles of Common Agricultural Policy. This paper aims to provide an overview of the conditions and criteria for granting State Aid in the agriculture sector from the Government. The analysis also includes the conditions for the provision of State Aid during the COVID-19 pandemic. The paper concludes with an analysis of the measures of the Slovak Republic supporting the competitiveness of economic entities operating in the agricultural sector.

scholarly journals Competitiveness of Family Farms in the Czech Republic in the Context of EU Common Agricultural Policy 2014+

2015 ◽  
Vol 63 (6) ◽  
pp. 2171-2178
Author(s):  
Jan Vavřina ◽  
Marcela Basovníková
Keyword(s):  
Czech Republic ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Single Market ◽  
Family Farms ◽  
The Czech Republic ◽  
Business Entities ◽  
The Eu

Highly regulated EU agricultural sector via Common Agricultural Policy (CAP) creates conditions for encouraging the competitiveness of farmers not only within the European single market. Farmers in the Czech Republic face not only the challenges of globalization, nevertheless the problem of aging the farmers’ population. Under provided major assumptions, there is therefore necessary to implement such instruments of the CAP to ensure sustainable competitiveness of Czech agricultural enterprises and specifically family farms by government authorities, which are considered to be the economically smallest agricultural business entities. There is introduced a specific approach to a more efficient CAP in the current EU programming period till year 2020 through efforts to increase the competitiveness of European farmers as well in the term of the sustainable development within rural areas. The objective of the article is to identify usable financial and nonfinancial instruments to increase the competitiveness of domestic family farms in the context of EU CAP 2020 not only in terms of the Czech agrarian sector, but within the EU single market. Complementarily, there is provided evidence to economic performance of the smallest farmers in comparison with other size categories of agricultural businesses in the EU member countries.

FEATURES OF EU AGRICULTURAL POLICY: OPPORTUNITIES FOR UKRAINE

2020 ◽  
pp. 52-56
Author(s):  
Oleksii Hryhorovych Korytnyi ◽  
Keyword(s):  
Sustainable Development ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Market Competition ◽  
Practical Experience ◽  
Organic Production ◽  
Eu Countries ◽  
The Common ◽  
The Eu

The need for constant monitoring of existing practices to improve the efficiency of the agricultural sector and identify important guidelines for further development of this area.Using modern experience of EU countries to increase the efficiency of the national agricultural sector.Practical and theoretical issues of development of the agricultural sector and the use of existing practical experience in this field were considered by O. Borodin, O. Bublienko, V. Granovska, N. Karaseva, I. Klymenko, R. Kosodiy, M. Skoryk and others.Active development of economic processes in the agricultural sector requires current research on the existing practical experience of developed countries.Analysis of practical experience in ensuring the effective functioning of the agricultural sector of the EU.An effective direction of the transition to sustainable development of rural areas is organic production (regulatory principles are reflected in the Common Agricultural Policy of the EU). The institutional norms of the CAP EU act as a guarantor of positive transformations and a "substitute" for the interests of producers in conditions of market competition. In practice, the Council and the EU Commission are responsible for implementing the common policy. European policy for the development of the agricultural sector is funded by the European Agrarian Fund for Rural Development. EU countries use various mechanisms (subsidies, grants, state loan guarantees, etc.) for the development of the agricultural sector. The best results in the direction of sustainable development of the agricultural sector were achieved by countries that took radical steps quickly, decisively, comprehensively. The experience of the EU countries shows that it is also justified to limit government intervention in this sector, or to implement it through market-type mechanisms

scholarly journals Towards a common agricultural policy in Africa?

2018 ◽  
Vol 64 (No. 7) ◽  
pp. 301-315
Author(s):  
Blizkovsky Petr ◽  
Grega Libor ◽  
Verter Nahanga
Keyword(s):  
International Cooperation ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Agricultural Development ◽  
Agricultural Policies ◽  
African Countries ◽  
The Sixties ◽  
African Context ◽  
The Eu

The paper analyses the structure and level of international cooperation among African states in the area of agriculture and rural development. It focuses on the AU and its eight Regional Economic Communities. The international cooperation schemes between the World Bank, EU, FAO and African countries in agricultural policy are reviewed. The paper concludes that, despite numerous cross-border initiatives, governance of agricultural policies in the pan-African context remains fragmented. Policy-making and cooperation schemes need to be stepped up to address continent-wide challenges in the sector. There is an urgent need for the AU and the EU to intensify their cooperation in agricultural policies and development. The AU in collaboration with its regional bodies should establish a common agricultural policy for the continent. Such initiatives need to be Africa-driven and adapted to African needs. The EU should only provide technical know-how and institutional support if welcomed by African partners. Collective action towards rural areas via greater coordination of African agricultural policies and actions would help to develop the missing institutional framework needed for agricultural development in the continent. Fostering economic growth through agricultural development and reforms may also lead to a reduction of migration as witnessed by the EU in the sixties.  

scholarly journals EU COMMON AGRICULTURAL POLICY AND AGRICULTURAL POLICY OF THE REPUBLIC OF SRPSKA (BOSNIA AND HERZEGOVINA)

AGROFOR ◽  
2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Vesna Mrdalj ◽  
Gordana Rokvić ◽  
Petra Nikić Nauth
Keyword(s):  
European Union ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Institutional Development ◽  
Negotiation Process ◽  
The European Union ◽  
Accession Negotiation ◽  
The Republic ◽  
The Eu

One of the most challenging issues for the countries that are in the process ofaccession to the European Union is the reform of agriculture, precisely agriculturalpolicy and its compliance with the Common Agricultural Policy of the EuropeanUnion (CAP). The strategic orientation of the Republic of Srpska and Bosnia andHerzegovina is a full EU member status, which is defined with signatory to theStabilization and Accession Agreement in 2008 and confirmed with Applicationfor membership in the European Union, submitted in February 2016. Consideringthe upcoming accession negotiation process, the reformation of agricultural sectoris necessary in all areas of development: production, policy and legal frameworkand institutional development. Until 2015 Republic Srpska made and adopted twokey strategic documents that determine the directions, objectives and measures fordeveloping of agriculture and rural areas. Recently the Republic of Srpska adopteda new strategic plan for the development of agriculture and rural areas for theperiod 2016- 2020. Considering that agriculture budget represents a first indicatorof the countries sector priorities, objective of this paper is to provide analysis ofagricultural policy through the agricultural budget of the Republic of Srpska and itscompliance with Common Agricultural Policy of the EU. Comparative analysis isrelated to the period 2006 – 2014 using EU methodology for the classification ofagricultural measures (pillars and axis). Research results show that the structure ofmeasures and scope of budgetary support, defined within agricultural policy of theRepublic of Srpska is not compatible with Common Agricultural Policy of the EU.

scholarly journals Agri-Food Chain – Challenges and Perspectives

2020 ◽  
Vol 9 (1) ◽  
pp. 12-16
Author(s):  
Pavol Schwarcz ◽  
Norbert Floriš ◽  
Loreta Schwarczová
Keyword(s):  
Food Chain ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Economic Sectors ◽  
Project Proposal ◽  
Sustainable Rural Development ◽  
Member States ◽  
Centre Of Excellence ◽  
The Eu

AbstractAgri–food sector is one of the biggest and most supported economic sectors in the EU. It is a key sector for sustainable economic development and food safety and security. The EU Common Agricultural Policy (hereinafter CAP) is its backbone – it helps farmers with income support and market measures on the one hand and, on the other hand, it ensures sustainable rural development in individual EU countries. Despite of the huge support agricultural sectors in Member States are facing serious problems – in Slovakia it is especially the low level of domestic agricultural production, low quality of food products, high unemployment rate especially among young people, ageing of population and abandonment of rural areas. Looking for solutions for these problems mentioned there is a great challenge for relevant public authorities and for the academic sector, as well. Based on these facts the initiative to submit a project proposal has arisen within the Jean Monnet Centre of Excellence – which would respond on challenges in this field. The project (Centre of Excellence for European Agri-Food Chain – CEEAG 611446-EPP-1-2019-1-SK-EPPJMO-CoE) has been granted and its main focus will start from important and irreplaceable role of agriculture and food industry in national economies of (not only) Member States via ensuring their food security under conditions given by the EU Common Agricultural Policy (CAP) – one of the most supported policies in the EU.

scholarly journals Environmental aspects of agricultural policies of the European Union countries

2021 ◽  
pp. 136-144
Author(s):  
Anna Lytvynchuk
Keyword(s):  
European Union ◽  
Food Security ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Agricultural Sector ◽  
The European Union ◽  
State Support ◽  
Agricultural Producers ◽  
Eu Countries ◽  
The Eu

At present, the state of the economy of the agricultural sector in many countries of the world, including in the countries of the European Union (EU), inherent in developed industry, has led to the transition to a new environmentally oriented agricultural policy. An important role is assigned to state support of agricultural producers, through subsidies, preferential credit policy, and in some countries, the complete abolition of taxation of entrepreneurial activity in rural areas, which confirms the relevance and national economic significance of the article. In domestic agroeconomic science and practice, there is no scientific concept of state participation in the process of bringing the agricultural sector out of the crisis. Research objectives – consider the development policy of the agricultural sector of the EU countries; study the level of state support for agricultural producers. The purpose of the work is to consider the degree of development of the agricultural policy of the EU countries in the context of ensuring food security. The methods and methodology of the research were general scientific, particular methods of cognition, including the historical and logical, the method of observation and comparison. Shows the main approaches to state regulation of the development of the agro-industrial sector at the level of the European Union as a whole and in the context of member countries; characteristic features and principles that determine the success and integrity of a unified agricultural policy; factors contributing to the productivity of agricultural land; agro-ecological requirements restricting the import of genetically modified products; the main tasks in the development of a new policy of the agrarian sector of the economy; priority directions of regulation of measures to support agricultural producers, integrated development of rural areas, increasing the competitiveness of the EU agricultural sector. The practical significance of the work lies in the fact that this study will allow the state bodies of Belarus to better understand how it is necessary to form an agricultural policy in the context of ensuring food security.

scholarly journals Quo vadis Common Agricultural Policy of the European Union?

Management ◽  
2019 ◽  
Vol 23 (2) ◽  
pp. 295-309 ◽  
Author(s):  
Sebastian Stępień ◽  
Andrzej Czyżewski
Keyword(s):  
European Union ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Meta Analysis ◽  
Inductive Reasoning ◽  
The European Union ◽  
Macroeconomic Conditions ◽  
Quo Vadis ◽  
The Eu

Summary The agricultural policy of the European Union - Common Agricultural Policy (CAP) - was introduced in the 1960s as the first EU policy. Over the next decades it constituted the largest share in the expenditure of the EU budget. Today, although cohesion policy has replaced it in the first place, it is still being prioritized by the countries of the Community. Observation of the next financial perspectives, however, allows to conclude that the nature of the CAP is changing, which is a manifestation of the evolution of views on the role of the food sector in the economic development of the European Union. The aim of the study is to indicate the directions of reforms of the Common Agricultural Policy during its sixty-year functioning, the reasons for these changes and the consequences they have had for the agricultural sector in EU countries. These outcomes were supplemented by outlining the perspectives for the development of the EU agricultural policy in the coming years. The authors focused on the basic instruments of the CAP including income-generating, environmental and rural development-related. On the basis of the analysis of objectives and instruments of the CAP, it was stated that it departed from traditional market support to create more sophisticated intervention related to the changing macroeconomic conditions and expectations of the society. The paper is a review, with elements of meta-analysis, deduction and inductive reasoning.

Dopady společné zemědělské politiky EU na české zemědělce v období 2014–2020

2021 ◽  
Author(s):  
Eliška Stromská ◽  
Dominika Tóthová ◽  
Katarína Melichová
Keyword(s):  
Czech Republic ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Financial Stability ◽  
Agricultural Sector ◽  
The Czech Republic ◽  
The Common ◽  
Political Economic ◽  
The Impact ◽  
The Eu

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.

scholarly journals Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications

Agriculture ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 288
Author(s):  
Ewa Kiryluk-Dryjska ◽  
Agnieszka Baer-Nawrocka
Keyword(s):  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Regional Differences ◽  
Agricultural Sector ◽  
Policy Implications ◽  
The European Union ◽  
Economic Activities ◽  
Agricultural Potential ◽  
Beneficial Impact

Although the beneficial impact of Common Agricultural Policy (CAP) on the stabilization on farming income is undisputable, the distribution of benefits derived from the CAP between operators and regions gives rise to some controversy. The objective of this paper was to estimate regional differences in the benefits derived from the Common Agricultural Policy in Poland based on the partial equilibrium model of the European Union (EU) agricultural sector with simulated interventions. The expectations of farmers from different regions of Poland were represented as a non-cooperative game to define vectors of change in the agricultural policy. The theory of moves was applied to set the game between different groups of farmers. Our results demonstrate that both the 1st and the 2nd pillars of the CAP were more profitable to farmers from regions with a more advantageous agrarian structure and a higher agricultural potential compared to their peers from the regions with a fragmented agriculture. However, considering long-term development objectives of the Polish agriculture, the theory of moves outcome argues against compensating for these differences by increasing redistributive payments to farmers in less favorable regions. To prevent widening of regional differences and ensure the social and economic development of rural areas in regions with less favorable agrarian structures where agriculture is currently unable to compete, it would be critical to enhance conditions for alternative types of economic activities.

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