Future Direct Payments in Ukraine

Purpose: At the time of accession, Ukraine will be covered by the full CAP instrumentation, the system of direct payments included. The total amount of payments to Ukraine may reach the amount of EUR 96.5 billion (over 7 years) according to some estimates. The purpose of the article is to try to verify this amount. Design/Methodology/Approach: Verification shall be performed by reviewing the latest analyses, made in EU countries, on the estimates of future agricultural support. An account of the amount of payments to agricultural producers in this country shall be presented as well. Unlike other studies, the calculation takes into account two elements: phasing-in mechanism and capping. Document analysis, comparative methods are employed Findings: The result reveal a smaller magnitude of the future direct payments than the other studies. In which neither capping nor phasing were employed. Practical Implications: The results of the research shall be of interest for scientists,t politicians and decision makers. Originality/Value: In this research unique statistical data on the number and area of farms were presented. No other studies employed capping and phasing-in approach in order to limit future probable EU expenses for direct payments in Ukraine.