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 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 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.

scholarly journals Effect of the domestic sectoral policies harmonisation in CECs with the EU Common Agricultural Policy

2012 ◽  
Vol 49 (No. 3) ◽  
pp. 113-119
Author(s):  
V. Vojtěch
Keyword(s):  
Czech Republic ◽  
Quantitative Analysis ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Slovak Republic ◽  
The Czech Republic ◽  
Central European ◽  
The Common ◽  
The Eu

This paper discusses the potential effects of the EU Common Agricultural Policy (CAP) on the various branches of the agricultural sector in the four OECD member Central European Countries (CECs), i.e. the Czech Republic, Hungary, Poland and the Slovak Republic. The estimation of the effect of the domestic sectoral policies harmonisation with the Common Agricultural Policy (CAP) and its impact on the farming sector, consumers of agricultural commodities and taxpayers, is based on the data from the OECD quantitative analysis of support to agriculture.

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.

An Analysis of Agriculture Sector of Inclusive Growth in India

2021 ◽  
Vol 8 (4) ◽  
pp. 83-90
Author(s):  
P Chennakrishnan ◽  
D Thenmozhi
Keyword(s):  
Labor Force ◽  
Agricultural Sector ◽  
Human Being ◽  
Inclusive Growth ◽  
Rural Infrastructure ◽  
Indian Economy ◽  
Agriculture Sector ◽  
Service Sectors ◽  
Independence Era ◽  
The Government

Agriculture remains the dominant supporter of the Indian populace. The thriving industry and service sectors depend on the agricultural sector for their development. The inter-linkage among the three sectors could not be undermined at any cost. It is the massive absorbent of the labor force even though the disguised unemployment exists in varied magnitude. The share of agriculture to the GDP has come down from 57.7% in 1950-51 to 32.2% in 1990-91 at the time of liberalization, 24.6% in 2000-2001, 15.7% in 2009-2010 then 17%. In the post-independence era, stagnant production, low productivity, traditional technology, and poor rural infrastructure were the major challenges for the Government. India is principally an agricultural country. The agriculture sector estimates 18.0% of the GDP and employs 52% of the total workforce. There is a continuous steady decay in its presence towards the GDP, and the agriculture sector is losing its shine and anchor position in the Indian economy. The problems with which the Indian agricultural scenario is charged in present times are many. Still, this in no way undermines the interest of the sector and the role it can play in the holistic and inclusive growth of the country. Agriculture is fundamental for the sustenance of an economy, as is food for a human being.

scholarly journals CONDITION AND MAIN DIRECTIONS OF DIGITAL ECONOMY DEVELOPMENT IN AGRICULTURAL ECONOMY OF RUSSIA

2019 ◽  
Vol 14 (1) ◽  
pp. 107-112 ◽  
Author(s):  
Петр Акмаров ◽  
Petr Akmarov ◽  
Миршарип Газетдинов ◽  
Mirsharip Gazetdinov ◽  
Ольга Князева ◽  
...  
Keyword(s):  
Rural Areas ◽  
Information Technologies ◽  
Agricultural Sector ◽  
Digital Economy ◽  
Regional Differentiation ◽  
Industrial Complex ◽  
Global Trends ◽  
Innovative Technologies ◽  
Stage Of Development ◽  
The Government

The description of the main characteristics of the modern stage of development of information technology and global trends in digitalization is given. A brief information is given on the state of informatization in Russia as a whole, as well as in the country’s agriculture. A comparative analysis of the level of digitalization in rural areas and urban districts is given, the main reasons for the differences are highlighted. The necessity of information technologies development in the agricultural sector of the economy, as a factor in ensuring the country’s food security and a factor in the competitiveness of domestic agricultural products, is substantiated. The features of intellectual agriculture, its benefits for producers and for the population are shown. The dynamics of innovative technologies development is given based on the digital economy in recent years with the release of lagging branches of the agro-industrial complex. The regional differentiation of digitalization of the economy among the population is shown, the interrelation of the informatization level of the population with the development of innovative technologies in the economy of the region is shown. Using the example of cellular communication development, the convergence of digitalization level in cities and villages of the country has been proved. The main problems hindering the information technologies development in agriculture and new solutions adopted at the level of the President and the Government of Russia on the development of informatization are highlighted. The most promising areas of agricultural transformation are shown, focused on the digitization of various aspects of the industry and infrastructure production and sales.

scholarly journals Fenomena Penuaan Petani dan Berkurangnya Tenaga Kerja Muda serta Implikasinya bagi Kebijakan Pembangunan Pertanian

2016 ◽  
Vol 34 (1) ◽  
pp. 35 ◽  
Author(s):  
Sri Hery Susilowati
Keyword(s):  
Rural Areas ◽  
Agricultural Development ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Descriptive Analysis ◽  
Young Workers ◽  
Agricultural Industry ◽  
Agricultural Diversification ◽  
Determining Factors ◽  
The Government

<strong>English</strong><br />Qualified human resources with a good commitment to develop agricultural sector is one of the determining factors toward sustainable agricultural development. However, agricultural development deals with significant issue especially reduction in the number of young farmers. This paper aims to review structural changes from perspective of aging farmer and declined number of young farmers in Indonesia and other countries. Specifically, this paper identifies various factors causing the changes and describes the policies needed to support young workers to enter agricultural sector. The method used in this paper is both descriptive analysis and cross tabulation. The results show that aging farmers and young farmers decline in Indonesia keep increasing. The phenomena are also found in other countries in Asia, Europe, America and Australia. Various factors causing lack interest of young workers in agricultural sector, namely less prestigious, high risk, less assurance, unstable earning. Other factors are small size land holding, limited non-agricultural diversification and agricultural processing activities in rural areas, slow farm management succession, and lack of incentive for young farmers. To attract youth to enter agricultural sector, it is necessary to transform youth’s perception that agricultural sector currently is interesting and promising. The government needs to development agricultural industry in rural areas, introduces technology innovation, offers special incentives for young farmers, modernizes agriculture, and conducts training and empowerment of young farmers.<br /><br /><br /><strong>Indonesian</strong><br />Sumber daya manusia yang berkualitas dan memiliki komitmen membangun sektor pertanian merupakan salah satu faktor keberhasilan pembangunan pertanian berkelanjutan. Namun, pembangunan pertanian menghadapi permasalahan cukup serius, yaitu jumlah petani muda terus mengalami penurunan, baik secara absolut maupun relatif, sementara petani usia tua semakin meningkat. Tujuan makalah ini adalah melakukan review tentang perubahan struktural tenaga kerja pertanian dilihat dari fenomena aging farmer dan menurunnya jumlah tenaga kerja usia muda sektor pertanian di Indonesia dan di berbagai negara lainnya, mengidentifikasi berbagai faktor penyebab perubahan tersebut, serta kebijakan yang diperlukan untuk mendukung tenaga kerja muda masuk ke  sektor pertanian. Metode penelitian yang digunakan adalah analisis deskriptif dan tabulasi. Hasil analisis menunjukkan bahwa secara umum fenomena penuaan petani dan berkurangnya petani muda di Indonesia semakin meningkat. Kondisi seperti ini bukan hanya terjadi di Indonesia, namun juga di negara-negara lain di Asia, Eropa, dan Amerika.  Berbagai faktor penyebab menurunnya minat tenaga kerja muda di sektor pertanian, di antaranya citra sektor pertanian yang kurang bergengsi, berisiko tinggi, kurang memberikan jaminan tingkat, stabilitas, dan kontinyuitas pendapatan; rata-rata penguasaan lahan sempit; diversifikasi usaha nonpertanian dan industri pertanian di desa kurang/tidak berkembang; suksesi pengelolaan usaha tani rendah; belum ada kebijakan insentif khusus untuk petani muda/pemula; dan berubahnya cara pandang pemuda di era postmodern seperti sekarang. Strategi yang perlu dilakukan untuk menarik minat pemuda bekerja di pertanian antara lain mengubah persepsi generasi muda bahwa sektor pertanian merupakan sektor yang menarik dan menjanjikan apabila dikelola dengan tekun dan sungguh-sungguh, pengembangan agroindustri, inovasi teknologi,  pemberian insentif khusus kepada petani muda, pengembangan pertanian modern, pelatihan dan pemberdayaan petani muda, serta memperkenalkan pertanian kepada generasi muda sejak dini.

scholarly journals Agriculture Sector Credit and Output Relationship in Nepal

2020 ◽  
pp. 33-53
Author(s):  
Arjun Kumar Dahal ◽  
Khagendra Kumar Thapa
Keyword(s):  
Commercial Banks ◽  
Agricultural Sector ◽  
Least Squares Method ◽  
Manufacturing Sector ◽  
Agriculture Sector ◽  
Industrial Sectors ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

Purpose: The purpose of this study is to find out the condition of priority of commercial banks to provide loans to the agricultural sector and to find the relationship and impact of agricultural loans to the agricultural GDP of Nepal. Objectives: This study aims to compare the condition of loan disbursements in agricultural and manufacturing sectors. It further aims to compare loan percent with growth and contribution to the GDP of the agricultural and industrial sectors and tries to show the impact of agricultural loans to the agricultural GDP of Nepal. Methods: It was based on a descriptive and analytical research design. Statistical tools standard deviation, correlation, regression, etc. are used and Excel, and EViews software are used for the statistical calculations. Statistical calculations and graphs are simultaneously used to show and compare the condition of variables. Results: Commercial banks give higher priority to the manufacturing sector for loans than the agricultural sector. The Johansen Co-integration test indicates no long-run relationship between loans of commercial banks and agricultural output in Nepal. However, the least-squares method, it indicates that a positive causal relationship between agricultural loans and agricultural growth. Implications: The loans of commercial banks directly stimulate the growth of agriculture but the amount of growth is less noticeable. Thus, it is concluded that the commercial bank's loan alone cannot affect and control the growth of the agricultural sector of the Nepalese economy therefore the government should increase its expenditure on the agricultural sector.

scholarly journals [Agriculture Land Development Policy According to Islamic Perspective] Dasar Pembangunan Tanah Pertanian Menurut Perspektif Islam

2017 ◽  
Vol 15 (1) ◽  
pp. 106-117
Author(s):  
Mohd Borhanuddin Zakaria ◽  
Amir Husin Mohd Nor ◽  
Noor Lizza Mohamed Said ◽  
Md. Yazid Ahmad ◽  
Juairiah Hasan
Keyword(s):  
Agricultural Policy ◽  
Development Policy ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Food Policy ◽  
Land Development ◽  
Annual Reports ◽  
Spiritual Values ◽  
Descriptive Approach ◽  
The Government

National Agricultural Policy (DPN 1, 1984-1991, 1992-1997 DPN 2, 3 DPN 1998-2010), and the National Agro-Food Policy (DAN 2011-2020) was a transformation of the government to improve the country’s food quality. Various plans have been made through DPN and DAN. However, there are shortcomings in the DPN implemented with the aim of economic development alone. This study aims to put certain mechanisms for the development of the agricultural sector in line with the teachings of Islam which includes holistic human development. The research methodology used in this study is content analysis, analysing data using descriptive approach with a combination of qualitative approach of analyzing the text, including the analysis of documents and official reports, circulars, annual reports, statements of position, financial plan, reports agencies, and transcripts. The study found that the basic development of Islamic farmland is based on the concept of tauhidiyyah, rububiyyah, tazkiyyah, tanmiyyah, khilafah, insaniyyah, akhlaqiyyah which applies Islamic spiritual values including the preservation of the environment and the securities development.   Key Words: National Agricultural Policy (DPN), Development of Agricultural Land, Land Development Concept in Islam.     Dasar Pertanian Negara (DPN 1 1984-1991, DPN 2 1992-1997, DPN 3 1998-2010), dan Dasar Agromakanan Negara (DAN 2011-2020) merupakan satu transformasi kerajaan bagi meningkatkan kualiti makanan negara. Pelbagai perancangan khusus telah dibuat melalui DPN dan DAN. Namun terdapat kepincangan dalam DPN yang dilaksanakan dengan tujuan pembangunan ekonomi semata-mata. Kajian ini bertujuan untuk meletakkan mekanisma tertentu agar pembangunan sektor pertanian selari dengan tuntutan Islam yang  merangkumi pembangunan insan secara syumul. Metodologi kajian ini menggunakan reka bentuk kajian analisis kandungan, data-data yang dikumpulkan dianalisis melalui pendekatan deskriptif dengan gabungan pendekatan kualitatif iaitu menganalisis teks termasuk menganalisis dokumen-dokumen dan laporan-laporan rasmi,surat pekeliling, laporan tahunan,laporan jabatan, rancangan kewangan, laporan agensi,dan transkrip. Hasil kajian mendapati bahawa dasar pembangunan tanah pertanian Islam berteraskan konsep tauhidiyyah, rububiyyah, tazkiyyah, tanmiyyah, khilafah, insaniyyah, akhlaqiyyah yang menerapkan nilai-nilai kerohanian Islam termasuk pelestarian alam sekitar dan sekuriti pembangunan.   Kata kunci: Dasar Pertanian Negara (DPN), Pembangunan Tanah Pertanian, Konsep Pembangunan Tanah Islam.

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