The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms

This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment a...

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Main Authors: Stefania Czekaj, Edward Majewski, Adam Was
Format: Article
Language:English
Published: University of Debrecen 2013-09-01
Series:Apstract: Applied Studies in Agribusiness and Commerce
Subjects:
Online Access:https://ojs.lib.unideb.hu/apstract/article/view/6170
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author Stefania Czekaj
Edward Majewski
Adam Was
author_facet Stefania Czekaj
Edward Majewski
Adam Was
author_sort Stefania Czekaj
collection DOAJ
description This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment and in reaction to developments in the farming sectors in EU countries. On the 12th of October 2011, the Commission presented a set of legal proposals designed to make the CAP a more effective policy to encourage more competitive and sustainable agriculture and vibrant rural areas. The proposal brings various new elements under consideration, some of them raising strong controversies such as introducing “greening” as a component of direct payments. Changes in the direct payments scheme in line with the EC proposition include forcing adjustments in the cropping pattern and creating ecological focus areas (EFA) on 7% of the farm land ; the consequences of such a proposal on the size and structure of agricultural production, and thus on the economic performance of farms and the whole agricultural sector are uncertain. The authors analyse historical changes to the CAP with a focus on a growing importance of the environmental component of the CAP, discuss different scenarios of shaping the direct payments system and present the results of modelling the impacts of greening the CAP on the Polish farming sector with the use of the LP optimisation model. The study was based on Polish FADN data. Results show that the majority of farmers in Poland comply with the crop diversification constraint of greening. However, establishing the required EFAs and necessary diversification on farms with simplified cropping structures will have a negative impact on the volume of agricultural production as well as on farm incomes.
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spelling doaj.art-8d770eaef9cb4b11b46410546f3807fe2022-12-21T21:56:11ZengUniversity of DebrecenApstract: Applied Studies in Agribusiness and Commerce1789-221X1789-78742013-09-0172-310.19041/APSTRACT/2013/2-3/8The impact of the “greening” of the common agricultural policy on the financial situation of Polish farmsStefania Czekaj0 Edward Majewski 1Adam Was2Warsaw University of Life Sciences – SGGW Warsaw University of Life Sciences – SGGWWarsaw University of Life Sciences – SGGW This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment and in reaction to developments in the farming sectors in EU countries. On the 12th of October 2011, the Commission presented a set of legal proposals designed to make the CAP a more effective policy to encourage more competitive and sustainable agriculture and vibrant rural areas. The proposal brings various new elements under consideration, some of them raising strong controversies such as introducing “greening” as a component of direct payments. Changes in the direct payments scheme in line with the EC proposition include forcing adjustments in the cropping pattern and creating ecological focus areas (EFA) on 7% of the farm land ; the consequences of such a proposal on the size and structure of agricultural production, and thus on the economic performance of farms and the whole agricultural sector are uncertain. The authors analyse historical changes to the CAP with a focus on a growing importance of the environmental component of the CAP, discuss different scenarios of shaping the direct payments system and present the results of modelling the impacts of greening the CAP on the Polish farming sector with the use of the LP optimisation model. The study was based on Polish FADN data. Results show that the majority of farmers in Poland comply with the crop diversification constraint of greening. However, establishing the required EFAs and necessary diversification on farms with simplified cropping structures will have a negative impact on the volume of agricultural production as well as on farm incomes.https://ojs.lib.unideb.hu/apstract/article/view/6170CAPgreeningecological focus areacrop diversificationfarm income
spellingShingle Stefania Czekaj
Edward Majewski
Adam Was
The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
Apstract: Applied Studies in Agribusiness and Commerce
CAP
greening
ecological focus area
crop diversification
farm income
title The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
title_full The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
title_fullStr The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
title_full_unstemmed The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
title_short The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
title_sort impact of the greening of the common agricultural policy on the financial situation of polish farms
topic CAP
greening
ecological focus area
crop diversification
farm income
url https://ojs.lib.unideb.hu/apstract/article/view/6170
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