IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2020068010255.html
   My bibliography  Save this article

Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic

Author

Listed:
  • Marie Šimpachová Pechrová

    (Institute of Agricultural Economics and Information, Mánesova 1453/75, 120 00 Prague 2, Czech Republic)

  • Ondřej Šimpach

    (Faculty of Informatics and Statistics, University of Economics Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic)

Abstract

To ensure the generation renewal in the European Union there are subsidies for setting up of young farmers' businesses and the retirement scheme and top-up direct payments. In the Czech Republic are provided subsides to interest rates with preference of young farmers and intergenerational succession of the farm is tax-free. Together with other incentives, those factors shall facilitate enter of young people to the sector. The aim of the paper is to assess whether the policy measures help the young farmers with setting-up of their business. Based on the primary survey on 510 young Czech farmers the most motivating for enter the sector were tax relief on transfer of the holding and top-up payment for young farmers. The farmers without background considered as sufficiently motivating the top-up payments more often than those with certain background who acknowledged more the top-up subsidies. Possible way how to facilitate the enter to the sector could be to keep the tax relief on farm transfer, to combine the measures for retirement and setting up of young farmers and provide investment subsidies or financial instruments for start-up. Top-up payments, despite motivational according to the farmers, are criticized as inefficient.

Suggested Citation

  • Marie Šimpachová Pechrová & Ondřej Šimpach, 2020. "Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 255-262.
    • Handle: RePEc:mup:actaun:actaun_2020068010255
    DOI: 10.11118/actaun202068010255
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun202068010255.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun202068010255.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun202068010255?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. Carbone, Anna & Subioli, Giovanna, 2008. "The Generational Turnover In Agriculture: The Ageing Dynamics And The Eu Support Policies To Young Farmers," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44731, European Association of Agricultural Economists.
    2. Davis, John & Caskie, Paul & Wallace, Michael, 2013. "Promoting structural adjustment in agriculture: The economics of New Entrant Schemes for farmers," Food Policy, Elsevier, vol. 40(C), pages 90-96.
    3. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2018. "Aging population, farm succession, and farmland usage: Evidence from rural China," Land Use Policy, Elsevier, vol. 77(C), pages 437-445.
    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. Rosa Maria Fanelli, 2023. "Barriers and Drivers Underpinning Newcomers in Agriculture: Evidence from Italian Census Data," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    2. Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    3. Breitenbach, Raquel & Foguesatto, Cristian Rogério, 2023. "Should I stay or should I go? Gender differences and factors influencing family farm business succession in Rio Grande do Sul, Brazil," Land Use Policy, Elsevier, vol. 128(C).

    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. May, Daniel & Arancibia, Sara & Behrendt, Karl & Adams, John, 2019. "Preventing young farmers from leaving the farm: Investigating the effectiveness of the young farmer payment using a behavioural approach," Land Use Policy, Elsevier, vol. 82(C), pages 317-327.
    2. Takahashi, Taro & Maruya, Kaori & Nakajima, Toru, 2016. "Non-farmers’ willingness to farm: a large-scale choice experiment to identify policy options that can induce new entry to the agricultural industry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236368, Agricultural Economics Society.
    3. Chao Zhang & Ruifa Hu, 2022. "Adoption of Direct Seeding, Yield and Fertilizer Use in Rice Production: Empirical Evidence from China," Agriculture, MDPI, vol. 12(9), pages 1-15, September.
    4. Deng, Xin & Xu, Dingde & Zeng, Miao & Qi, Yanbin, 2019. "Does early-life famine experience impact rural land transfer? Evidence from China," Land Use Policy, Elsevier, vol. 81(C), pages 58-67.
    5. Ping Xue & Xinru Han & Yongchun Wang & Xiudong Wang, 2022. "Can Agricultural Machinery Harvesting Services Reduce Cropland Abandonment? Evidence from Rural China," Agriculture, MDPI, vol. 12(7), pages 1-15, June.
    6. Giller, Ken E. & Andersson, Jens & Delaune, Thomas & Silva, João Vasco & Descheemaeker, Katrien & van de Ven, Gerrie & Schut, Antonius G.T. & van Wijk, Mark & Hammond, Jim & Hochman, Zvi & Taulya, God, 2022. "IFAD Research Series 83: The future of farming: who will produce our food?," IFAD Research Series 322005, International Fund for Agricultural Development (IFAD).
    7. Camille Robert-Boeuf, 2023. "Promoting Rural Regeneration and Sustainable Farming near Cities Thanks to Facilitating Operators in France? The Case of the Versailles Plain’s Association Governance Model," Sustainability, MDPI, vol. 15(9), pages 1-16, April.
    8. Hongyun Han & Shu Wu, 2018. "Structural Change and Its Impact on the Energy Intensity of Agricultural Sector in China," Sustainability, MDPI, vol. 10(12), pages 1-23, December.
    9. Lenore Newman & Robert Newell & Colin Dring & Alesandros Glaros & Evan Fraser & Zsofia Mendly-Zambo & Arthur Gill Green & Krishna Bahadur KC, 2023. "Agriculture for the Anthropocene: novel applications of technology and the future of food," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(3), pages 613-627, June.
    10. Qingsheng Bi & Weiqiang Chen & Ling Li & Xiuli Wang & Enxiang Cai, 2022. "Agricultural Population Supported in Rural Areas under Traditional Planting Mode Based on Opportunity Cost Analysis," Land, MDPI, vol. 11(8), pages 1-15, August.
    11. Baoling Zou & Zanjie Ren & Ashok K. Mishra & Stefan Hirsch, 2022. "The role of agricultural insurance in boosting agricultural output: An aggregate analysis from Chinese provinces," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 923-945, October.
    12. Hui Zhang & Jing Li & Tianshu Quan, 2023. "Strengthening or Weakening: The Impact of an Aging Rural Workforce on Agricultural Economic Resilience in China," Agriculture, MDPI, vol. 13(7), pages 1-16, July.
    13. Xinyue Qu & Wenfeng Zhou & Jia He & Dingde Xu, 2023. "Land Certification, Adjustment Experience, and Green Production Technology Acceptance of Farmers: Evidence from Sichuan Province, China," Land, MDPI, vol. 12(4), pages 1-20, April.
    14. Yan, Jinming & Yang, Yumeng & Xia, Fangzhou, 2021. "Subjective land ownership and the endowment effect in land markets: A case study of the farmland “three rights separation” reform in China," Land Use Policy, Elsevier, vol. 101(C).
    15. Zhou, Bing-Bing & Aggarwal, Rimjhim & Wu, Jianguo & Lv, Ligang, 2021. "Urbanization-associated farmland loss: A macro-micro comparative study in China," Land Use Policy, Elsevier, vol. 101(C).
    16. John Davis & Paul Caskie & Michael Wallace, 2013. "How Effective are New Entrant Schemes for Farmers?," EuroChoices, The Agricultural Economics Society, vol. 12(3), pages 32-37, December.
    17. Liao, Liuwen & Long, Hualou & Gao, Xiaolu & Ma, Enpu, 2019. "Effects of land use transitions and rural aging on agricultural production in China’s farming area: A perspective from changing labor employing quantity in the planting industry," Land Use Policy, Elsevier, vol. 88(C).
    18. Xufang Zhang & Minghua Zhao & Xiaojie Wang & Rongqing Han, 2022. "Regional Differences of Farmers’ Willingness to Grow Grain and Its Influencing Factors in Shandong Province under the Background of New-Type Urbanization," Agriculture, MDPI, vol. 12(8), pages 1-21, August.
    19. Chaozhu Li & Xiaoliang Li & Jiaxu Wang & Tianchu Feng, 2023. "Impacts of Aging Agricultural Labor Force on Land Transfer: An Empirical Analysis Based on the China Family Panel Studies," Land, MDPI, vol. 12(2), pages 1-15, January.
    20. Jack, Claire & Miller, Ana Corina & Ashfield, Austen & Anderson, Duncan, 2019. "New entrants and succession into farming: A Northern Ireland perspective," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 8(2), August.

    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_2020068010255. 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.