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The Evaluation of Negative Factors of Direct Payments under Common Agricultural Policy from a Viewpoint of Sustainability of Rural Regions of the New EU Member States: Evidence from Lithuania

Author

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  • Mangirdas Morkunas

    (Faculty of Economics and Business Administration, Vilnius University, Sauletekio av. 9, 10222 Vilnius, Lithuania)

  • Povilas Labukas

    (Alytus City Municipal Council, Rotuses sq. 4, 62504 Alytus, Lithuania)

Abstract

The present study aims to determine and evaluate the negative consequences of the implementation of the direct payments financial support mechanism under the Common Agricultural Policy on the rural sustainability of Lithuania. Interviews of experts and a combination of the analytic hierarchy process with three different measurement scales and the analytic hierarchy process with triangular fuzzy numbers were employed in order to evaluate and rank the negative effects of the direct payments mechanism of the Common Agricultural Policy. It was revealed that high land prices, decreasing diversification of cultivated crops, land degradation, and financial indebtedness of farmers can be attributed to direct payments and these consequences have a significant negative impact on the rural sustainability of Lithuania. The necessity of using a combination of different evaluation scales and techniques was confirmed.

Suggested Citation

  • Mangirdas Morkunas & Povilas Labukas, 2020. "The Evaluation of Negative Factors of Direct Payments under Common Agricultural Policy from a Viewpoint of Sustainability of Rural Regions of the New EU Member States: Evidence from Lithuania," Agriculture, MDPI, vol. 10(6), pages 1-14, June.
    • Handle: RePEc:gam:jagris:v:10:y:2020:i:6:p:228-:d:370813
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    References listed on IDEAS

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    Cited by:

    1. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    2. Katherine S. Nelson & Tuan D. Nguyen & Jean R. Francois & Shreya Ojha, 2023. "Rural sustainability methods, drivers, and outcomes: A systematic review," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1226-1249, June.
    3. Andrey Zaytsev, 2020. "Rental Income Structure in Economy as a Basis for Sustainable Agrarian Relations in the Agro-Industrial Complex," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    4. Affek, Andrzej N. & Jabs-Sobocińska, Zofia & Wolski, Jacek & Radeloff, Volker C., 2023. "Pockets of persistence of agricultural land use during the socioeconomic shock of forced post-WWII displacements in the Carpathians," Land Use Policy, Elsevier, vol. 131(C).
    5. Artiom Volkov & Agnė Žičkienė & Mangirdas Morkunas & Tomas Baležentis & Erika Ribašauskienė & Dalia Streimikiene, 2021. "A Multi-Criteria Approach for Assessing the Economic Resilience of Agriculture: The Case of Lithuania," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    6. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    7. García Merchán, Gabriela, 2023. "Agricultural Subsidies in the Economy of Ecuador – An Assessment of Impact Through CGE Modelling," Papers 1413, World Trade Institute.
    8. Antonín Vaishar & Milada Šťastná, 2021. "Accessibility of Services in Rural Areas: Southern Moravia Case Study," Sustainability, MDPI, vol. 13(16), pages 1-19, August.

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