Analysis of Farms Support under Direct Payments
Nina Koteva, Bozhidar Ivanov
Abstract: Farms receive a significant part of their support through direct payments. They guarantee a definite level of economic security for farmers by providing minimum income in periods of economic crisis, climate change,unfavourable market conditions, etc.The topics of direct payments’ level and distribution remain significant. Within the new CAP 2020+ the relevance of these studies is reinforced, as one of the main objectives is to support sufficiently reliable agricultural incomes and sustainability in the EU.
In this relation, the aim of this article is to indicate the level, the distribution of the support and the range of supported farmers through direct payments.
Research methods: The wide range of relevant research methods gives the opportunity for analysis and assessment of the farms’ level and trends – system and comparative analysis; method of indication; expert method; descriptive analysis; statistical grouping method; graphical method; inductive and deductive methods for analysis and generalizations forming.
The analysis includes a research of the level and dynamics of several indicators, unified in two groups:
- For assessment of farms support degree;
- For assessment of direct payments distribution between the farms
The following conclusions were made on the basis of the analysis:
- A considerable financial resource, which our country does not possess, has been absorbed by the farms under direct payments;
- About 1/3 of farms have been supported;
- Unequal distribution of the support between beneficiaries – accumulation of significant part of the funds for the large holdings, small or insignificant part for the support of small farms;
- Insignificant positive change in the actual program period of CAP (2014-2020), compared to the previous period, orientation to more balanced and equal distribution of the support between farms.
In this relation, the aim of this article is to indicate the level, the distribution of the support and the range of supported farmers through direct payments.
Research methods: The wide range of relevant research methods gives the opportunity for analysis and assessment of the farms’ level and trends – system and comparative analysis; method of indication; expert method; descriptive analysis; statistical grouping method; graphical method; inductive and deductive methods for analysis and generalizations forming.
The analysis includes a research of the level and dynamics of several indicators, unified in two groups:
- For assessment of farms support degree;
- For assessment of direct payments distribution between the farms
The following conclusions were made on the basis of the analysis:
- A considerable financial resource, which our country does not possess, has been absorbed by the farms under direct payments;
- About 1/3 of farms have been supported;
- Unequal distribution of the support between beneficiaries – accumulation of significant part of the funds for the large holdings, small or insignificant part for the support of small farms;
- Insignificant positive change in the actual program period of CAP (2014-2020), compared to the previous period, orientation to more balanced and equal distribution of the support between farms.
Keywords: CAP; coefficient of concentration of unevenly distributed amount; direct payments; farms; Gini coefficient; support distribution
Date published: 2020-08-27
Download full text