SAPS effect on different farm types application of regression analysis

Emilia Sokolova

Abstract: The article examines the main effects of the direct payments of the EU’s Common Agricultural Policy, and the specifcally applied in Bulgaria Single Payment Scheme (SAPS) on the farms operation and their income. The aim of the study was to determine whether and to what extent different types of holdings (based on their typology and organization) are dependent on the direct payments they receive. To achieve this target statistical data from the Farm Accountancy Data Network, as well as from the “Agrostatistics” department of the Ministry of agriculture and food, Eurostat and the National Statistical Institute was used. Before proceeding to the use of regression analysis an assessment of the CAP impact on the main indicators for the development of the agricultural sector was made. The importance of direct payments on factor income and the net value added was shown. In order to further study these trends an analysis of farm level (based on the Bulgarian FADN data for 2011) was made. The agricultural holdings were analyzed based on their typology and organization. As a result of the research conclusions about the level of impact of direct payments on different farm types and their ability to respond to market signals were drawn. The implemented statistical analysis shows that farms raising feld crops are the most positively affected, but they also rely most heavily on SAPS payments in 2011. In-depth analysis, covering all sectors of agriculture would allow building a more complete picture of the SAPS effects.

Keywords: CAP; direct payments; farmers income; SAPS

Date published: 2017-10-03