Impact of direct payments of cap on the economic situation of rural areas

Ivaylo Todorov, Maria Stanimirova

Abstract: Direct payments are a main pillar of support to agriculture and farmers’ incomes under the CAP. The concept
of direct payments distributed through the Single Area Payment Scheme (SAPS) predetermines their external
orientation towards the rural areas and regions, where the major part of the land resources are concentrated. In view of this, although direct payments are envisaged as a tool to support farmers’ incomes, the expectations
and perceptions of local communities are to boost up and foster the economic and social situation in rural areas. The main objective of the analysis is to investigate how far and to what extent subsidies positively favor the economic situation in rural areas and to scrutinize the reasons for the findings. On the basis of comparative,
descriptive and deterministic analysis, a study of the relationships between key parameters of economic development and direct payments as well as the retrospective comparative review of the development of rural and non-rural areas are done to demonstrate the impact of direct payments on rural economic situation.

Keywords: agriculture; demography; direct payments; economic situation; regional analysis; rural areas

Date published: 2023-01-30