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“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities

Author

Listed:
  • Aleksandra Pawłowska

    (Institute of Rural and Agricultural Development of the Polish Academy of Sciences, Nowy Świat Str. 72, 00-330 Warsaw, Poland)

  • Renata Grochowska

    (Institute of Agricultural and Food Economics—National Research Institute, Świętokrzyska Str. 20, 00-002 Warsaw, Poland)

Abstract

Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.

Suggested Citation

  • Aleksandra Pawłowska & Renata Grochowska, 2021. "“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities," Energies, MDPI, vol. 14(24), pages 1-15, December.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:24:p:8242-:d:697200
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    1. Monika Kabadzhova & Mihaela Mihailova & Daniela Tsvyatkova, 2024. "Farmers’ Attitudes To Implementation CAP Greening Practices in Both the Blagoevgrad and Kyustendil Regions in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 128-149.
    2. Zielinski, Marek, 2022. "Organic farming in Poland as a source of public goods in areas particularly suited to its development," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 193(4), April.
    3. Irina Pilvere & Aleksejs Nipers & Aija Pilvere, 2022. "Evaluation of the European Green Deal Policy in the Context of Agricultural Support Payments in Latvia," Agriculture, MDPI, vol. 12(12), pages 1-22, November.
    4. repec:ags:ijag24:344718 is not listed on IDEAS

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