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Scenarios for the Allocation of Direct Payments under the CAP National Strategic Plan 2023–2027: Coupled Support

In: Crisis after the Crisis: Economic Development in the New Normal

Author

Listed:
  • Lucian Luca

    (Institute of Agricultural Economics)

  • Daniela Giurca

    (Institute of Agricultural Economics)

  • Cristina Cionga

    (Romanian Maize Growers Association)

Abstract

Due to its 15% allocation of Pillar I envelope, the highest possible, coupled support is an important component of direct payments in Romania. The present paper brings as a novelty a proposal to calculate the level of coupled support starting from the profitability analysis of the sectors for which it is allowed to be granted. The profitability analysis of the o sectors in difficulty was performed based on the 2018 data collected by the Romanian Farm Accountancy Data Network from about 5000 agricultural holdings. Starting from the calculation of the profitability indicators for 15 crop and livestock sectors, eligible for coupled support in the period 2023–2027, an objective way of identifying a level of support was sought to ensure the profitability of those sectors. The level chosen for the amount of coupled support defines the ‘profitability’ scenario, its relevance being briefly analysed by comparison with the ‘negotiations’ scenario, defined by the proposals resulting from consultations organised by Ministry of Agriculture.

Suggested Citation

  • Lucian Luca & Daniela Giurca & Cristina Cionga, 2023. "Scenarios for the Allocation of Direct Payments under the CAP National Strategic Plan 2023–2027: Coupled Support," Springer Proceedings in Business and Economics, in: Luminita Chivu & Ignacio De Los Ríos Carmenado & Jean Vasile Andrei (ed.), Crisis after the Crisis: Economic Development in the New Normal, chapter 0, pages 107-117, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-30996-0_8
    DOI: 10.1007/978-3-031-30996-0_8
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