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Challenges for modelling CAP 2014-2020 within CGE model framework

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Zawalinska K., Ciechomska A., Jendrzejewski B.

Wieś i Rolnictwo

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2016

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nr 4

The paper discusses various approaches to modelling measures of the Common Agricultural Policy (CAP) within a computable general equilibrium (CGE) framework for the new budgetary period 2014–2020. The task of modelling such a complex policy as the CAP with the use of CGE is not easy at least for three reasons. First, the policy itself is very complex – Pillar 2 alone includes about 17 very heterogeneous measures, which differ in terms of implementation and eligibility criteria. Pillar 1 measures are not targeted (in terms of goods and services that may be bought with these funds) and thus the assessment of their impact requires additional knowledge on how they were spent. Second, although CGE models represent all sectors of the economy, yet they normally do not characterise individual sectors with such a precision as would be desired for modelling the nuances of the individual CAP measures. Third, the CAP evolves towards less tangible measures (risk management, quality improvements, conditionality based on environmental requirements), and towards increasing role of non-marketed goods (provision of public goods, environmental amenities, food safety). There is also an increasing role of human capital manifested by e.g. bottom-up approaches or co-operation measures. They, however, are difficult to grasp by the CGE models since they are not directly observed or linked to the exogenous variables controlled in this types of models. While taking all the challenges into account and relaying on a literature review the article presents some solution and makes suggestions for possible ways of modelling new CAP 2014–2020 within CGE modelling framework which may be useful in the policy evaluation.

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Constraints in the process of paradigm change in the EU agricultural development

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Grochowska R., Kosior K.

Acta Scientiarum Polonorum. Oeconomia

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2015

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tom 14

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nr 1

The purpose of this article is to assess the changes in proclaimed paradigms regarding development of the agricultural sector in the EU with particular focus on barriers to these changes. The theoretical part highlights the types of changes in the public policies, the main models of paradigm developments and the impact of institutional factors, including structures of policy networks on their changes. In the next part the CAP proclaimed paradigms are shown against the effects of the current policy. At the same time, these elements of policy network structure which contribute to the replication of the existing patterns of development are indicated. The summary contains refl ections on the possibility of institutional change in the development of the CAP. It was found that only further reduction of the agricultural budget after 2020 can become a source of conflict between the actors (stakeholders) around available resources and may change the balance of power in the decision-making process in the CAP.

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Public goods in agriculture of the European Union. Funding and Social Meaning

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Czyzewski A., Kulyk P.

Economic and Regional Studies

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2015

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tom 08

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nr 1

The aim of this study is to present the social meaning and funding opportunities of public goods on grounds of selected examples applied by Common Agricultural Policy (CAP) by the EU. The study includes data characterizing expenditure connected with agricultural policy of the EU in accordance with OECD measuring methodology. Considered issues start with the public goods conception and their role in bio-economy. Changes in agriculture financial support structure in the EU between 2004-2012 were considered with respect to the assessment of particular tools that serve public goods funding. It was indicated that these tools contribute to their formation as well. Restrictions in financial support of public goods were presented. It was proved that in the formation of CAP in the EU features specific for certain localizations connected with public goods formation are being taken into consideration increasingly.

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Decoupled payments in the agricultural policy of well-developed countries

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Poczta-Wajda A.

Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu

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2011

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tom 13

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nr 6

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.

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Options for CAP reform in the next trade round with special reference to milk

100%

Sheehy S. J.

Annals of Warsaw Agricultural University. Agricultural Economics and Rural Sociology

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1998

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tom 33

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Slovak agriculture before and after accession

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Pokrivcak J., Kuzma F.

Acta Agraria et Silvestria. Series Agraria

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2003

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tom 40

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nr Sek.ekon.

After 1989 the deep decreases in agricultural production and incomes were observed in Slovakia. The reason was negative development of agricultural terms of trade and decline of government support. Since agriculture was heavily subsidized and politically preferred in pretransformation period, decline of agricultural production indicates an improvement of resource allocation. Decline of agricultural production was deepened by transformation uncertainty and inefficiency of economic and legal institutions. Extreme distribution of land ownership, non- transparent ownership rights, inefficient financial markets and uncertain economic contracts were major problems. Development of agricultural policy after 1989 went from liberalism through ad hoc protectionism to adjustment of instruments of agricultural policy to those of Common Agricultural Policy (CAP) of the EU. In recent years, the level of support of agriculture is much lower than that in the EU. It is slightiy higher than in other Yisegrad countries, however. Agricultural support comes from bom consumers and taxpayers. Consumers pay higher prices because of price support while taxpayers pay higher taxes due to production and export subsidies. Agricultural support relative to GDP per capita is now rather high. Before EU accession Slovakia will have to adopt instruments ofthe CAP and gradually also the level of support that is in the EU, Joining the EU and adoption of CAP will increase agricultural prices, consumers' welfare will decrease and agricultural producers' welfare will increase and Slovakia will become a net beneficiary of the common budget of the EU. The possible impact of CAP for Slovak agriculture is uncertain. Bom net transfers from the EU and the enhancement of efficiency of economic (market) and legal institutions should have a positive effect, whereas the worsening of allocation of resources in economy will have negative effect.

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Optional payments of the first pillar under CAP vs the average amount of support per farm

86%

Sadlowski A.

Economic and Regional Studies

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2018

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tom 11

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nr 3

Subject and purpose of work: The article analyses the influence of optional instruments applied in Poland as part of the first pillar of the Common Agricultural Policy on the average support provided to farms in individual provinces. Materials and methods: The study was based on data from the Agency for Restructuring and Modernisation of Agriculture as well as quantitative and analytical methods, especially simulations and comparative variant analysis. Results: The optional instruments applied in Poland increased the average support provided to farms in central and eastern Poland. The average amount of support paid per farm would have been bigger in northern, western and southern provinces if optional instruments had not been implemented. Primarily, the introduction of both redistributive payment and production-related support (all forms of this support taken together) resulted in a decrease in the average aid per holding in the same group of provinces and at the same time an increase in this size in other provinces (compared to the situation in which the amounts for financing these instruments would be distributed under the single area payment). Conclusions: The analysis of the influence of redistributive payment and coupled support on the average amount of financial aid per farm in individual provinces shows that the consequences of using these instruments were very similar to each other in their effect on the variable under study.

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The role of small farms in Romania and their future in the face of challenges of the CAP post 2013

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Alexandri C., Luca L.

Problemy Drobnych Gospodarstw Rolnych

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2012

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nr 1

9

Mozliwosci uzyskania wsparcia finansowego dla gospodarstw w warunkach Wspolnej Polityki Rolnej

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Rybczak S.

Biuletyn Informacyjno-Handlowy. Ośrodek Doradztwa Rolniczego Boguchwała

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2004

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nr 12

9-10

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Lease of agricultural land as an instrument of structural changes in agriculture in the context of the theory of institutional economics

86%

Suchon A., Baum R.

Acta Scientiarum Polonorum. Oeconomia

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2013

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tom 12

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nr 4

The paper analyzes legal regulations and statistical data on a lease and assesses their infl uence on structural changes in agriculture. Next, it presents the issue of lease in the context of the theory of institutional economics (in the framework of old and new institutional economics). The research has proved that a lease is an effective instrument of structural changes in the Polish village helping not only to create and enlarge the new farms but also to modernizing the existing ones. Currently, a lessee of agricultural land is an entity which, in order to run an effective business activity, has to conclude various agreements, file applications, invest. The development of a lease is part of a theory which promotes the image of an entrepreneurial person, entangled in social and institutional relationships, who enters into various agreements.

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Development of rural areas through the CAP 2020 and Europe 2020 strategies

86%

Toro-Dunay A.

Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego

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2011

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tom 11(26)

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nr 3

The phrase ‘rural areas’ mean not only the place for agricultural production and the living place of rural population, but also refer to all the traditions, landscape, environment and residents of these areas. Rural development is highly supported at the EU level and it helps to enhance the quality of life of rural residents and the economic performance of rural areas. According to some points of view, the excessive support should be cut down, but the primary objectives of the CAP should be maintained. The threats of the economic crisis appear more significantly in rural areas. What are the possible ways to increase the economic situation of these areas, where poverty is high, education level is low and the population is aging? Working facilities are mostly connected with agriculture, but the financial background and competitiveness of agricultural enterprises is rather low. The environment and landscape should be preserved. How can all these problems be solved at the same time? How can the environment be preserved in line with the development of the rural areas? The renewed CAP was outlined in November 2010. This paper tries to examine the visions of rural areas for the future.

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Income situation of agricultural holdings covered by the agricultural accounting system (FADN) in European Union countries

86%

Grzelak A.

Journal of Agribusiness and Rural Development

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2018

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nr 4[50]

13

From „deficiency payments” through „decoupling” to “greening” – direct payments in the European Union

86%

Krzyzanowski J.

Electronic Journal of Polish Agricultural Universities. Series Economics

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2015

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tom 18

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nr 2

14

Zmiany we Wspolnej Polityce Rolnej

86%

Sikora H.

Biuletyn Informacyjno-Handlowy. Ośrodek Doradztwa Rolniczego Boguchwała

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2003

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nr 09

3-4

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The income situation in agriculture after Poland entered the European Union

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Golonko M., Wysokinski M., Gromada A., Trebska P., Lenort R.

Acta Scientiarum Polonorum. Oeconomia

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2021

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tom 20

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nr 1

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Payment coupled to production - sectoral impacts specific features in case of soy production

86%

Vasary M., Doman C.

Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu

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2016

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tom 18

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nr 3

Between 2014 and 2020 there have been substantial rearrangements within the Common Agricultural Policy, which – in harmony with the former reform phases of CAP – has aimed to implement real conceptual and technical changes in the system of direct subsidies and market measures. As a result of this process, the system of subsidies coupled to production could be extended in Hungary, too. This new approach, which was totally different from the previous reform phases, does not restrict, but rather expands the possible amount and areas of implementation. This, in many cases, may result in a number of favourable impacts for the beneficiary sectors. Sectors, which have not received any EU subsidies before, can be supported and the member states have substantial say in forming the conditions according to their needs. In general, it is still a question, what effects can be expected, what actual consequences of the measures can be quantified on the basis of the currently available information. Following these, the main goal of this paper is to characterize the consequences of the coupled support payment by the soy production.

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How have the CAP reforms contributed to structural development in agriculture?

86%

Arovuori K.

Wieś i Rolnictwo

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2017

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nr 3

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.

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Impact of the economic size of farms on the range of support from the European Union Common Agricultural Policy measures

86%

Marcysiak A., Marcysiak A.

Acta Scientiarum Polonorum. Oeconomia

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2013

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tom 12

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nr 4

The purpose of this paper is an attempt to present the impact of the economic size of farms on the range of support measures of the European Union Common Agricultural Policy. Detailed analyzes were conducted on the example of direct payments and payments for areas with unfavourable farming conditions (LFA). Their amount was considered in relation to farm income. The analysis covered the year 2011. In relation to the total amount of the analyzed farms, CAP support the EU in 2011 was 43.7% of farm income. The basic elements of support from the EU CAP payments were direct payments and payments for less favoured areas. They created respectively 74.3% and 9.9% of the total support. The increasing impact of these measures on income is observed year by year.

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Small farms in Italy: public support, diversification and economic sustainability

86%

Ascione E., Henke R., Vanni F.

Problemy Drobnych Gospodarstw Rolnych

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2012

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nr 1

20

New concepts for rural development in the strategies and policies of the European Union

72%

Adamowicz M., Zwolinska-Ligaj M.

Economic and Regional Studies

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2018

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tom 11

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nr 3

Subject and purpose of work: The subject of the analysis is the concept of rural development in the European Union countries and its connection with the evolution of the common agricultural policy and the transformation of the cohesion policy. The aim of the study is to discover and assess the scale and method of supporting the rural development in the European Union countries through common agricultural policy and to present the underlying theoretical-cognitive and political-practical premises for shaping rural development strategies. Materials and methods: The official documents and subject literature are submitted for critical analysis and evaluation by authors. Results: This paper presents methods of defining and classifying rural areas and rural development through common agricultural policy and cohesion policy. It specifically outlines the concepts of multifunctional and intelligent development linked to the Europe 2020 strategy and the Cork political declarations. The new concept of smart villages and rural-urban partnership is also presented. Conclusion: The processes of rural policy separation and the need for creating national methods of the coordination of community policies and the use of European funds are indicated.

Ograniczanie wyników

Challenges for modelling CAP 2014-2020 within CGE model framework

Constraints in the process of paradigm change in the EU agricultural development

Public goods in agriculture of the European Union. Funding and Social Meaning