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Who Benefits from CAP? The Way the Direct Payments System Impacts Socioeconomic Sustainability of Small Farms

Author

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  • Artiom Volkov

    (Agricultural Policy and Foreign Trade Division, Lithuanian Institute of Agrarian Economics, V. Kudirkos Str. 18–2, LT-03105 Vilnius, Lithuania)

  • Tomas Balezentis

    (Division of Farm and Enterprise Economics, Lithuanian Institute of Agrarian Economics, V. Kudirkos Str. 18–2, LT-03105 Vilnius, Lithuania)

  • Mangirdas Morkunas

    (Agricultural Policy and Foreign Trade Division, Lithuanian Institute of Agrarian Economics, V. Kudirkos Str. 18–2, LT-03105 Vilnius, Lithuania)

  • Dalia Streimikiene

    (Division of Farm and Enterprise Economics, Lithuanian Institute of Agrarian Economics, V. Kudirkos Str. 18–2, LT-03105 Vilnius, Lithuania)

Abstract

The effects of globalization have often been adverse for the agricultural sector, especially its most vulnerable element—the small farm. The importance of the agricultural sector as a whole and small farms in the sense of ensuring food security, employment and viability of rural areas, implies a necessity to support the sector and small farms in particular. For this purpose, the Common Agricultural Policy (CAP) of the European Union (EU) seeks to boost the sustainability of agriculture in multiple dimensions. The 2013 reform of the CAP has provided a particularly strong impetus towards this direction. This paper establishes an indicator system to quantify the effects of the CAP direct payments on the socioeconomic sustainability of small farms. Expert survey and multi-criteria assessment are used to this end. The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method is applied for the multi-criteria analysis. Lithuania is taken as a case study. The results show that, in the case of Lithuania, the direct payment system did not contribute to the improvement in socioeconomic sustainability of small farms up until 2013 CAP reform when its impact became undeniable.

Suggested Citation

  • Artiom Volkov & Tomas Balezentis & Mangirdas Morkunas & Dalia Streimikiene, 2019. "Who Benefits from CAP? The Way the Direct Payments System Impacts Socioeconomic Sustainability of Small Farms," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:2112-:d:221324
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    1. Sadłowski, Adrian & Beluhova-Uzunova, Rositsa & Popp, József & Atanasov, Dimo & Ivanova, Boryana & Shishkova, Mariyana & Hristov, Krum, 2022. "Direct Payments Distribution Between Farmers in Selected New EU Member States," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.
    2. Martina Slámová & Alexandra Kruse & Ingrid Belčáková & Johannes Dreer, 2021. "Old but Not Old Fashioned: Agricultural Landscapes as European Heritage and Basis for Sustainable Multifunctional Farming to Earn a Living," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    3. Adrian Sadłowski & Wioletta Wrzaszcz & Katarzyna Smędzik-Ambroży & Anna Matras-Bolibok & Anna Budzyńska & Marek Angowski & Stefan Mann, 2021. "Direct Payments and Sustainable Agricultural Development—The Example of Poland," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    4. Artiom Volkov & Tomas Balezentis & Mangirdas Morkunas & Dalia Streimikiene, 2019. "In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?," Sustainability, MDPI, vol. 11(12), pages 1-15, June.
    5. Štefan Bojnec & Kristina Knific, 2021. "Farm Household Income Diversification as a Survival Strategy," Sustainability, MDPI, vol. 13(11), pages 1-16, June.
    6. 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.
    7. Francisco Manuel Martínez García & Ana Nieto Masot & Gema Cárdenas Alonso & José Manuel Pérez Pintor, 2023. "The Common Agricultural Policy (CAP) in Extremadura (SW Spain) during the Period 2014–2020:New Opportunities for Economic Diversification in Rural Areas?," Land, MDPI, vol. 12(10), pages 1-19, September.
    8. Mangirdas Morkunas, 2022. "Measuring the Level of the Youth Informal Economy in Lithuania in 2004–2020," Economies, MDPI, vol. 10(11), pages 1-13, November.
    9. Mugurel I. Jitea & Valentin C. Mihai & Felix H. Arion & Iulia C. Muresan & Diana E. Dumitras, 2021. "Innovation Gaps and Barriers in Alternative Innovative Solutions for Sustainable High Nature Value Grasslands. Evidence from Romania," Agriculture, MDPI, vol. 11(3), pages 1-18, March.
    10. Adrian Sadłowski, 2023. "Decomposition of variations of direct payments rates on the example of selected support instruments applied in Poland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(2), pages 55-67.
    11. Silvia Ștefania Maican & Andreea Cipriana Muntean & Carmen Adina Paștiu & Sebastian Stępień & Jan Polcyn & Iulian Bogdan Dobra & Mălina Dârja & Claudia Olimpia Moisă, 2021. "Motivational Factors, Job Satisfaction, and Economic Performance in Romanian Small Farms," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    12. Jana Lososová & Radek Zdeněk, 2023. "Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(1), pages 13-24.
    13. Angelo Puccia & César M. Mora Márquez & Julia M. Núñez-Tabales, 2022. "Promotion of European Wines in Third Countries within the Common Market Organisation Framework: The Case of France," Economies, MDPI, vol. 10(2), pages 1-15, February.

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