IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2011059070293.html
   My bibliography  Save this article

Subsidies of agricultural production in the Czech Republic and their economic context

Author

Listed:
  • Marie Prášilová

    (Katedra statistiky, Katedra ekonomických teorií, Česká zemědělská univerzita v Praze, Kamýcká 129, 165 21 Praha 6 - Suchdol, Vysoká škola hotelová v Praze 8, spol. s r. o., Česká republika)

  • Lucie Severová

    (Katedra statistiky, Katedra ekonomických teorií, Česká zemědělská univerzita v Praze, Kamýcká 129, 165 21 Praha 6 - Suchdol, Vysoká škola hotelová v Praze 8, spol. s r. o., Česká republika)

  • Jan Chromý

    (Katedra statistiky, Katedra ekonomických teorií, Česká zemědělská univerzita v Praze, Kamýcká 129, 165 21 Praha 6 - Suchdol, Vysoká škola hotelová v Praze 8, spol. s r. o., Česká republika)

Abstract

An important part of evaluating common economic politics of countries in the European Union (EU) is the observation of microeconomic consequences of governmental subsidies in agriculture. This article mentions some basic theoretical and practical connections regarding subsidies in agriculture and of agricultural products on the Czech market, and regarding consequences of implemented price intervention programs. If a subsidy is directed to large-scale producers as well as to geographically unfavourably situated small-scale producers, it can not only miss its own target, but even deepen the existing problem. It is now becoming apparent that prospering large companies have an overall bigger profit from each crown of the subsidized price than small farms, which were originally the reason to implement the subsidies. The size structure of agricultural companies in the Czech Republic has so far been relatively favourable with respect to subsidies. After 2013, a reform of the Common agricultural politics of EU is planned and the amounts of direct payments for agriculture from the EU budget will be newly set. However, the European Parliament supports a proposal of limiting subsidies according to size of farms. Along with that, there is a real threat of growing prices of agricultural products on the market. Results of statistical analyses of source materials have revealed the largest proportion of subsidies in the outputs of Czech agricultural companies in the last years as compared to our neighbours, and also in up to now balance of subsidy level and aid in terms of economic size of the companies. The European Parliament's support of limiting direct payments for agriculture from the EU budget based on size of companies is unfavourable for the Czech Republic and will impact the price level of agricultural products.

Suggested Citation

  • Marie Prášilová & Lucie Severová & Jan Chromý, 2011. "Subsidies of agricultural production in the Czech Republic and their economic context," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 293-300.
  • Handle: RePEc:mup:actaun:actaun_2011059070293
    DOI: 10.11118/actaun201159070293
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201159070293.html
    Download Restriction: free of charge

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201159070293.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.11118/actaun201159070293?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Barrett E. Kirwan, 2009. "The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 138-164, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zuzana Hloušková & Marie Prášilová, 2017. "Classification of Specialized Farms Applying Multivariate Statistical Methods," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(3), pages 1007-1014.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Styan, Jacob & Boerngen, Maria A. & Barrowclough, Michael J., 2021. "Factors Influencing Increased Usage of Cash Rent Leases in Illinois," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2021.
    2. Brown, Jason P. & Fitzgerald, Timothy & Weber, Jeremy G., 2016. "Capturing rents from natural resource abundance: Private royalties from U.S. onshore oil & gas production," Resource and Energy Economics, Elsevier, vol. 46(C), pages 23-38.
    3. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    4. Richard Hornbeck & Pinar Keskin, 2015. "Does Agriculture Generate Local Economic Spillovers? Short-Run and Long-Run Evidence from the Ogallala Aquifer," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 192-213, May.
    5. Callahan, Scott & Ifft, Jennifer & Michaud, Clayton P., 2022. "The impact of countercyclical farm programs on agricultural land values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322579, Agricultural and Applied Economics Association.
    6. Stark, Oded & Pang, Yu & Fan, Simon, 2024. "Agglomeration, Pollution, and Migration: A Substantial Link, and Policy Design," EconStor Open Access Book Chapters, in: World Scientific Handbook of Global Migration, Volume 3: Types of Migrants and Economies: A Global Perspective, pages 199-225, ZBW - Leibniz Information Centre for Economics.
    7. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters, in: The Economics of Food Price Volatility, pages 261-306, National Bureau of Economic Research, Inc.
    8. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(1), pages 1-17, February.
    9. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    10. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    11. Ciaian, Pavel & Pokrivcak, Jan & Kancs, d'Artis, 2013. "Empirical Evidence of the Distributional Effects of the CAP in New EU Member States," Working papers 157117, Factor Markets, Centre for European Policy Studies.
    12. Robert Dinterman & Ani L Katchova, 2020. "Property Tax Incidence on Cropland Cash Rent," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 739-758, December.
    13. Falkowski, Jan, 2013. "Does it matter how much land your neighbour owns? The functioning of land markets in Poland from a social comparison perspective," Factor Markets Working Papers 171, Centre for European Policy Studies.
    14. Pavel Ciaian & d'Artis Kancs & Maria Espinosa, 2018. "The Impact of the 2013 CAP Reform on the Decoupled Payments’ Capitalisation into Land Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 306-337, June.
    15. Pavel Ciaian & d'Artis Kancs & Jo Swinnen, 2008. "Static and Dynamic Distributional Effects of Decoupled Payments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 20-47.
    16. Odening, Martin & Ritter, Matthias & Hüttel, Silke, 2015. "The term structure of land lease rates," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 201664, Agricultural and Applied Economics Association.
    17. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Rental Market Regulations for Agricultural Land in EU Member States and Candidate Countries," Factor Markets Working Papers 117, Centre for European Policy Studies.
    18. Moro, D. & Guastella, G. & Sckokai, P. & Veneziani, M., 2013. "The Capitalization of Area Payment into Land Rental Prices: Micro-evidence from Italy," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149746, Italian Association of Agricultural and Applied Economics (AIEAA).
    19. McFadden, Jonathan & Miranowski, John, "undated". "Climate Change Impacts on the Intensive and Extensive Margins of US Agricultural Land," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170512, Agricultural and Applied Economics Association.
    20. Van Herck, Kristine & Vranken, Liesbet, 2012. "Direct Payments and Land Rents: Evidence from New Member States," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126777, International Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2011059070293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.