Simulation of the impacts of the proposed direct payment scheme – The case of the Czech Republic

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F23%3A43906792" target="_blank" >RIV/60076658:12510/23:43906792 - isvavai.cz</a>
Result on the web
<a href="https://agricecon.agriculturejournals.cz/pdfs/age/2023/01/03.pdf" target="_blank" >https://agricecon.agriculturejournals.cz/pdfs/age/2023/01/03.pdf</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.17221/328/2022-AGRICECON" target="_blank" >10.17221/328/2022-AGRICECON</a>

Result language
angličtina
Original language name
Simulation of the impacts of the proposed direct payment scheme – The case of the Czech Republic
Original language description
The draft Strategic plan of the Common Agricultural Policy (CAP) for the Czech Republic has provoked the displeasure of many entrepreneurs in agriculture due to the redistributive payments, to which 23% of the total volume of direct payments will be directed instead of the originally planned 10%. According to the creators of the Strategic plan, this should support the fairer distribution of payments, respecting the benefits arising from the scale of production of large companies. Critics of the plan claim that operating subsidies are already degressive and fear an adverse impact on medium-sized companies, which, given the structure of the companies in the Czech Republic, will affect a large part of agriculture. This article aims to identify the farm size for which direct payments will be reduced and the likely degree of the impact on the farm economy. Our results suggest that the new payment system will lead to a reduction in direct payments for farms larger than 313 ha and, from a farm size of 873 ha, direct payments will fall below 85% of the average, which may cover around 50% of the agricultural land in the Czech Republic.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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