scholarly journals PUBLIC GOODS VERSUS THE FARM PRICE-COST SQUEEZE: SHAPING THE SUSTAINABILITY OF THE EU’S COMMON AGRICULTURAL POLICY

2019 ◽  
Vol 25 (1) ◽  
pp. 82-101 ◽  
Author(s):  
Bazyli Czyżewski ◽  
Anna Matuszczak ◽  
Radosław Miśkiewicz
Keyword(s):  
Public Goods ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Empirical Studies ◽  
Commodity Prices ◽  
Economic Problem ◽  
Output Analysis ◽  
Constant Elasticity ◽  
Cge Models ◽  
Farm Price

There is a consensus that farmers are subject to farm price-cost squeeze (PCS) when commodity prices fall and costs of production rise long-term. Willard Cochrane was the first to examine this phenomenon, introducing the notion that farmers are on a market treadmill. PCS is still a principle economic problem in agriculture touching farms in all over the world. It results from flexible prices but also from monopsony structures where recipients of commodities seize the opportunity of suboptimal pricing. Many studies indicate increasing retail farm price spreads but this lacks empirical studies on the effects of different types of subsidies on PCS. This work attempted to model EU Common Agricultural Policy (CAP) impact on PCS using the Constant Elasticity of Substitution (CES) production function, specified as in most CGE models. However, the authors tested the assumption of flexible prices reacting to changes in productivity. This approach is novel, while supported with an input-output analysis used to precisely decompose price and volume (productivity) effects at the level of a FADN representative farm. The results help to shape CAP shedding light on the present treadmill mechanism and showing that provision of public goods may be a remedy for market imperfections, whereas decoupled payments have the opposite influence.

Wachsen oder weichen!? Eine Analyse der agrarstrukturellen Debatte im Kontext der EU-Agrarpolitik nach 2020

2019 ◽  
Vol 28 (4) ◽  
pp. 356-364
Author(s):  
Wiebke Nowack ◽  
Julia C. Schmid ◽  
Harald Grethe
Keyword(s):  
Content Analysis ◽  
Public Goods ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Small Enterprises ◽  
Small Farms ◽  
Eine Analyse

Die Zahl landwirtschaftlicher Betriebe in Deutschland und Europa nimmt ab und ihre durchschnittliche Größe zu. Besteht Anlass für eine stärkere Unterstützung kleinerer Betriebe? Agrarpolitische Interessensgruppen deuten den Größenstrukturwandel unterschiedlich und ziehen verschiedene politische Schlussfolgerungen.Structural changes in agriculture are frequently considered problematic. Concerns are expressed about the declining number of farms and the growth of the farms that remain. A structuring content analysis of 50 position papers on the post-2020 Common Agricultural Policy (CAP) reform shows that the development of agricultural-sized structures is interpreted as a problem of both equity and multifunctionality. The respective positionings overlap when it comes to the principle of performance equity and comes together around the goal of maintaining as many (small) farms as possible. It is either assumed that small enterprises would benefit if subsidies were tied to the provision of public goods, or that promoting the existence of small farms would automatically lead to their provision. Existing studies can only partially prove or refute such connections. What remains is the need for public negotiations regarding the societal functions which agriculture should assume, and with what priority.

scholarly journals ASSESSMENT OF GREENING IN THE CONTEXT OF PROVIDING ENVIRONMENTAL PUBLIC GOODS IN AGRICULTURE

2019 ◽  
pp. 18-27
Author(s):  
Agnieszka Biernat-Jarka
Keyword(s):  
Public Goods ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
The European Union ◽  
Environmental Public Goods ◽  
The Subject ◽  
The Common ◽  
Safe Food ◽  
The One ◽  
Source Materials

The article discusses the concept of providing environmental public goods through agriculture. The theoretical goal of the discussion was to present the concept of greening under the EU's Common Agricultural Policy. This concept was developed on the basis of available literature and from EU and Polish documents. The concrete goal is to assess greening instruments in terms of their implementation and compliance by farmers. A review of the available literature on the subject allows the assumption that the greening instrument implemented under the CAP has contributed to an intensification of activities by farmers in the field of environmental protection. The article was prepared based on source materials, monographs and scientific articles as well as Eurostat data. The article also presents the results of Eurobarometer surveys that show the expectations of EU citizens towards the European Union's CAP in the field of environmental and climate protection. Results of surveys have shown that on the one hand, the European Union should be responsible for ensuring healthy and safe food products for consumers, while on the other hand the goal of the Common Agricultural Policy should be to ensure an appropriate standard of living for farmers.

scholarly journals Twenty Years of Common Agricultural Policy in Europe: A Bibliometric Analysis

2021 ◽  
Vol 13 (19) ◽  
pp. 10650
Author(s):  
Giulio Fusco
Keyword(s):  
European Commission ◽  
Bibliometric Analysis ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Empirical Studies ◽  
Agricultural Policies ◽  
Scientific Debate ◽  
Public Investments ◽  
High Degree

The last few years have been marked by the increasing attention paid by policymakers to agricultural policies. Within this scenario, the Common Agricultural Policy represents one of the main initiatives developed by the European Commission to enhance the agricultural sector. Academics have actively contributed to the debate through empirical studies in order to evaluate the main strengths and weakness related to the public investments made by the European Commission. However, despite the relevance of the topic, the scientific debate is characterized by a high degree of fragmentation caused by the involvement of academics with different scientific backgrounds. Building on this evidence, this paper aims to contribute to the scientific debate on Common Agricultural Policy through a bibliometric analysis. The findings reveal the existence of three independent and complementary research clusters.

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.

Cherneha O. B., Chepurnova A. V. COMPARATIVE ANALYSIS OF UKRAINE AND POLAND FOOD SECURITY LEVELS

2019 ◽  
pp. 9-17
Keyword(s):  
Food Security ◽  
Comparative Analysis ◽  
Rural Development ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Public Spending ◽  
Development Program ◽  
Rural Development Program ◽  
Security Levels ◽  
The Eu

Objective. The purpose of the article is to compare the levels and mechanisms of food security management in Ukraine and Poland, to identify the main factors influencing the processes of its formation and to determine the directions of increasing the level of Ukraine food security. Methods. The scientific results of the study were obtained using the following methods: theoretical generalization and comparison (for the study of meaningful aspects of the definition of «food security»), analysis and synthesis (for comparative analysis of Ukraine and Poland food security levels), abstract-logical method (for establishing the links between the level of economic development of countries and the levels of their food security and determining the directions of increasing the Ukraine level of food security). Results. On the basis of a comparative analysis of Ukraine and Poland food security levels, a significant gap in Ukraine’s provision of food security has been identified. Thus, with respect to all food security components identified by FAO, except for the «use» of sanitary and safe drinking water, Poland has reached far ahead of Ukraine. It has been found that for the period 2012–2018, the value of the Global Food Security Index for Ukraine decreased by 2.1 due to a decrease in the level of affordability and availability of food, while the Polish side increased its position on GFSI by 2.8 due to the increase in affordability and availability of food in the country. It has been found that the decisive influence on the level of food security in Poland, as well as high ranking in the ranking is carried out by the EU Common Agricultural Policy (CAP), the implementation of the Polish Rural Development Program and significant public spending on agriculture. It has been determined that the main directions for improving the level of food security of Ukraine should be: lifting the moratorium on the sale of agricultural land; financing the agri-food sector not only through public spending but also through EU programs; creation and implementation of the National Rural Development Program; full and unconditional implementation of Government programs on EU integration; adaptation to the EU Common Agricultural Policy standards.

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