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The aim of this paper is to consider the role of decoupled payments in the agricultural policy of well- developed countries on the example of the EU and the US. Firstly, the idea and history of decoupling in the EU and the US is presented. Further, one attempts to answer some ąuestions about social and economic legitimacy of decoupled payments and tries to formulate recommendations for the future of decoupled direct payments in the CAP.
Poland is experiencing the first stages of a period where its active labour force will decline steadily over time. This has raised important concerns with how well labour markets in Poland function, especially those in rural areas where there are still large numbers of households on small farms that have only limited engagement with formal work, and whose farm income is too low to provide an acceptable family income. The result is a high level of rural under-employment that imposes a growing burden on the economy and society, both in terms of unproductive labour and in high transfer payments to these families. There is a clear understanding that reducing the number of small full-time family farms in Poland is desirable as a way to: improve household incomes, address the need for more workers in other sectors, and further enhance the competitiveness of farming. Achieving this goal has been problematic, largely because to date there have been few incentives for these farm families to alter their behaviour. Simply put, the vast majority of small farm households do not perceive that they would be better off by engaging in formal employment. This largely reflects limited job opportunities in rural areas and a significant skill mismatch in local labour markets. But, it also reflects the continued existence of a variety of Polish policies that provide considerable financial benefits to these farm households, including a highly subsidized medical and retirement plan and exemption from income taxes, that significantly reduce the incentive to change behaviour. With a shrinking work force the cost of holding these potential workers in their current situation will only increase over time, but changing these longstanding policies remains a major challenge for the government.
In the enlarged European Union the agricultural structure are diverse in most of the member states, but they have to use the same agricultural policy, which could have different effect in the agricultural sector. It is necessary to analyze and become acquainted with the agricultural structure in the Visegrad Group to form the Common Agricultural Policy reform.
This study aims to analyse the impact of the Common Agricultural Policy and its reforms on the development of agricultural structures. In the analysis we measure the development of rural structures using the number of farms as policy target variable. Our analysis aims to reveal the impact of agricultural policy and policy reforms on the development of the defined target variable, given the general economic and structural development. The analysis is conducted as an econometric panel data analysis. Our results show that agricultural policies have, in general, reduced the pace of structural development and kept more farms in the sector compared to a situation without policies. However, the implementation of CAP reforms in 1992, 2000 and 2007 has led to more rapid structural development. Overall, agricultural policies have smoothened the transition of resources from agriculture to other sectors.
Ten countries, including Slovakia, will join EU in 2004. Implementation of CAP is an integral part of the EU accession. Adoption of CAP will have a significant impact on the Slovak agriculture and economy. Support of farmers in Slovakia will increase after accession. Also policy instruments used to support agriculture will change. Major part of support will be provided by payments per hectare of agricultural land (SAPS). There will be also increase of prices, of most agricultural products because intervention prices at which EU purchases surplus production, are generally higher in the EU than in Slovakia. EU accession and adoption of CAP will complete a decade of agricultural reforms in Slovakia. These reforms changed the structure of agricultural sector as it had to adjust to market conditions and reduced role of the state regulation.
The article discusses the current challenges of world agricultural policy in the context of globalisation of economy. First there is a presentation of the preferences in agricultural production treatment coming from the natural and economic premises. Afterwards basic measures of food policy are described with special consideration of tax-payers money transfer to the farmers. Then one can find most important determinants of restructuring policy instruments in the national and world scale of intervention. Finally we could find some possible solutions in future deliberations regarding inevitable processes and public choice of the societies. Main thesis of the article states that there is a need of liberalisation and deregulation in agricultural policy to meet free-market rules and increase the efficiency of agri-enterprises.
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