The impact of agricultural policy on income diversity among farmers in the European Union in 2005–2017

Authors

  • Katarzyna Smędzik-Ambroży Poznań University of Economics and Business
  • Agnieszka Sapa Poznań University of Economics and Business

DOI:

https://doi.org/10.15584/nsawg.2020.3.9

Keywords:

agricultural income, income disparities, the European Union, the Common Agricultural Policy

Abstract

The aim of paper is to answer to the question whether the EU’s Common Agricultural Policy reduces the differences in the average agricultural income between the EU-15 countries and those that joined the EU in 2004. The hypothesis was assumed that the CAP subsidies reduce the differences in agricultural income between these two groups of countries. Spreads between average income of farmers from the old and new members were calculated. The analysis is carried out in two variants. In the first one, the agricultural income does not include the CAP support, in the second one the agricultural income covers all CAP subsidies. The spatial scope of research involves two groups of countries: EU-15 (Belgium, the Netherlands, Luxembourg, France, Germany, Italy, the United Kingdom, Denmark, Ireland, Greece, Spain, Portugal, Finland, Austria and Sweden) and EU-8 (the Czech Republic, Poland, Slovakia, Lithuania, Latvia, Estonia, Hungary and Slovenia). The subjective scope of the survey covers representative farms from the EU countries (representing 4,045,300–5,295,930 farms in the EU countries, depending on the investigated year). The time frame of the analyses concerns the years 2005–2017. The data from the Farm Accountancy Data Network (FADN) are used. The study positively verifies the hypothesis that: subsidies from the CAP cause a decrease in the differences in average agricultural income between the EU-15 and the EU-8 countries. This contributes to an increase in economic sustainability and in the territorial cohesion of agriculture for the EU countries.

References

Baer-Nawrocka, A. (2013). Wpływ Wspólnej Polityki Rolnej na efekty dochodowe w rolnictwie nowych krajów członkowskich Unii Europejskiej. Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Polityki Europejskie, Finanse i Marketing, 9(58), 34–44. The impact of agricultural policy on income diversity among farmers... 207

Boyle, G. E., McCarthy, T. G. (1997). A Simple Measure of β-convergence. Oxford Bulletin of Economics and Statistics, 59(2), 257–264. DOI: 10.1111/1468-0084.00063.

Chang, H.-J. (2009). Rethinking public policy in agriculture: lessons from distant and recent. Policy Assistance Series, 7, Rome: FAO.

Chmielewska, B. (2018). Zmiany zróżnicowania dochodów rolniczych w państwach członkowskich Unii Europejskiej. Zagadnienia Ekonomiki Rolnej, 2(355), 61–75. DOI: 10.30858/zer/92062.

Commission of the European Communities (1982). Indicators of Farm Income. Working document of the Services of the Commission, VI/308/82 EN (0082d), Brussels.

Czyżewski, A., Stępień, S. (2017). Nowe uwarunkowania ekonomiczne wspólnej polityki rolnej (WPR) Unii Europejskiej. Ekonomista, 6, 675–697.

Czyżewski, B., Poczta-Wajda, A. (2016). Effects of Policy and Market on Relative Income Deprivation of Agricultural Labour. Presentation for conference 160th EAAE Seminar “Rural Jobs and the CAP”, Warsaw, December 1–2.

Czyżewski, B., Smędzik-Ambroży, K. (2017). The regional structure of the CAP subsidies and the factor productivity in agriculture in the EU–28. Agricultural Economics – Czech, 63, 149–163. DOI: 3001.0012.2937.

Dow, G. K., Reed, C. G. (2013). The Origins of Inequality: Insiders, Outsiders, Elites, and Commoners. Journal of Political Economy, 121(3), 609–641. DOI: 10.1086/670741.

EUFADN (2019). Retrieved from: https://ec.europa.eu/agriculture/rica/concept_en.cfm (2019.09.16).

FADN (2020). Retrieved from: https://fadn.pl/metodyka/zbieranie-danych/formularze-danych-do-doboru-arozpro/ (2020.02.13).

Ghatak, S., Ingersent, K. (1984). Agriculture and Economic Development. Baltimore: The Johns Hopkins University Press.

Guth, M., Smędzik-Ambroży, K., Czyżewski, B., Stępień, S. (2020). The Economic Sustainability of Farms under Common Agricultural Policy in the European Union Countries. Agriculture, 10(2), 1–20. DOI: 10.3390/agriculture10020034.

Hamulczuk, M., Rembisz, W. (2009). Kwestie wyrównania dopłat bezpośrednich producentom rolnym w Unii Europejskiej. Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego, 9, 35–45.

Hayami, Y., Ruttan, V. W. (1985). Agricultural Development: An International Perspective. Baltimore: John Hopkins University Press.

Hill, B., Bradley, D. (2015). Comparison of Farmers’ Incomes in the EU Member States. Study for the European Parliament’s Committee on Agriculture and Rural Development. Brussels: European Parliament.

Josling, T., Anderson, K. (2017). The EU’s Common Agricultural Policy at Fifty: an Outside View. Hague: Dutch Ministry of Agriculture.

European Commission (1997). European Union Treaty of Amsterdam, Amsterdam. Retrieved from: http://europa.eu/eulaw/decisionmaking/treaties/pdf/treaty_of_amsterdam/treaty_of_amsterdam_en.pdf (2015.11.16).

European Commission (2019). An introduction to EU Cohesion Policy 2014–2020. Retrieved from: https://ec.europa.eu/regional_policy/sources/docgener/informat/basic/basic_2014_en.pdf (2019.09.11).

Kusideł, E. (2013). Konwergencja gospodarcza w Polsce i jej znaczenie w osiąganiu celów polityki spójności. Łódź: Wydawnictwo Uniwersytetu Łódzkiego.

Latruffe, L., Diazabakana, A., Bockstaller, Ch., Desjeux, Y., Finn, J., Kelly, E., Ryan, M., Uthes, S. (2016). Measurement of sustainability in agriculture: a review of indicators. Studies in Agricultural Economics, 118, 123–130. DOI: 10.7896/j.1624.

Malaga, K. (2004). Konwergencja gospodarcza w krajach OECD w świetle zagregowanych modeli wzrostu. Poznań: Wydawnictwo Akademii Ekonomicznej w Poznaniu.

Matuszczak, A., Smędzik-Ambroży, K. (2013). Próba ocen współzależności pomiędzy zrównoważeniem środowiskowym a wynikami ekonomicznymi gospodarstw rolnych na przykładzie regionu Wielkopolska i Śląsk. In: J. S. Zegar (Ed.), Z badań nad rolnictwem społecznie zrównoważonym, 19 (pp. 128–161). Warszawa: IERIGŻ.

Poczta-Wajda, A. (2017). Polityka wspierania rolnictwa a problem deprywacji dochodowej rolników w krajach o różnym poziomie rozwoju. Warszawa: PWN.

Rembisz, W. (2010). The Critical Analysis of the Intervention Basis and Evolution in Agriculture. Współczesna Ekonomia, 4(4), 7–15.

Runowski, H. (2017). Problem oceny poziomu dochodów rolniczych w Unii Europejskiej. Roczniki Naukowe SERiA, XIX(5), 185–190. DOI: 10.5604/01.3001.0010.6233.

Sala-i-Martin, X. (1996). The classical approach to convergence analysis. The Economic Journal, 106(437), 1019–1036. DOI: 10.2307/2235375.

Smędzik-Ambroży, K. (2018). Zasoby a zrównoważony rozwój rolnictwa w Polsce po akcesji do Unii Europejskiej. Warszawa: PWN.

Smędzik-Ambroży, K., Guth, M. (2019). Subsidies from the Common Agricultural Policy of the EU versus Agricultural Incomes in the European Union Countries in 2005–2015. Hradec Economic Days, 9(2), 307–316.

Stępień, S., Czyżewski, A. (2019). Quo vadis Common Agricultural Policy of the European Union?. Management, 23(2), 295–309. DOI: 10.2478/manment-2019-0032.

Stępień, S., Guth, M., Smędzik-Ambroży, K. (2018). Rola Wspólnej Polityki Rolnej w kreowaniu dochodów gospodarstw rolnych w Unii Europejskiej w kontekście zrównoważenia ekonomiczno-społecznego. Zeszyty Naukowe SGGW w Warszawie; Problemy Rolnictwa Światowego, 18(3), 295–305. DOI: 10.22630/PRS.2018.18.3.87.

Stoeckel, A. (2000). Solving the Problem – The Political Economy of Agricultural Reform.

Barton: Rural Industries Research and Development Corporation – Centre for International Economics.

Swinnen, J. (2015). The Political Economy of the 2014–2020 Common Agricultural Policy. An Imperfect Storm. London: Centre for European Policy Studies – Brussels: Rowman and Littlefield International.

Timmer, C. P. (2009). A world without agriculture. The structural transformation in historical perspective. Washington DC: The American Enterprise Institute for Public Policy Research.

World Bank (2008). World Development Report, 2008: Agriculture for development. Washington:

World Bank, DC, USA. Wrzaszcz, W. (2012). Czynniki kształtujące zrównoważenie gospodarstw rolnych. Journal of Agribusiness and Rural Development, 2(24), 285–296.

Zawalińska, K., Majewski, E., Wąs, A. (2015). Long-Term Changes in the Incomes of the Polish Agriculture Compared to the European Union Countries. Roczniki Naukowe SERiA, XVII(6), 346–354.

Downloads

Published

2020-11-13

How to Cite

Smędzik-Ambroży, K., & Sapa, A. (2020). The impact of agricultural policy on income diversity among farmers in the European Union in 2005–2017. Social Inequalities and Economic Growth, 3(63), 195–209. https://doi.org/10.15584/nsawg.2020.3.9

Issue

Section

Articles