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The Economic Sustainability of Farms under Common Agricultural Policy in the European Union Countries

Department of Macroeconomics and Agricultural Economics, Poznań University of Economics and Business, Al. Niepodległości 10, 61-875 Poznań, Poland
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Agriculture 2020, 10(2), 34; https://doi.org/10.3390/agriculture10020034
Received: 16 December 2019 / Revised: 26 January 2020 / Accepted: 27 January 2020 / Published: 31 January 2020
The aim of this paper is to determine the influence of the Common Agricultural Policy’s (CAP) subsidies on the level of economic sustainability of farms by means of three-fold study. To determine the economic sustainability of farms the authors applied the income gap ratio. Next, the level of income differentiation between farms of various economic classes was established. The last part consisted of the recognition of statistically significant CAP schemes that shape agricultural income in farms of different size and in assessing how the respective subsidies should increase or decrease to fill the recognized gap, based on the coefficients of panel regression. The spatial scope covered all EU countries in 2005–2015. Results show that due to the CAP’s support the average income of farms has approached the average non-agricultural income, but distribution of this support favored the largest farms, increasing disparities within the sector. View Full-Text
Keywords: economic sustainability; agriculture; policy; subsidies; CAP; EU; income gap economic sustainability; agriculture; policy; subsidies; CAP; EU; income gap
MDPI and ACS Style

Guth, M.; Smędzik-Ambroży, K.; Czyżewski, B.; Stępień, S. The Economic Sustainability of Farms under Common Agricultural Policy in the European Union Countries. Agriculture 2020, 10, 34.

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