THE IMPACTS OF DIRECT PAYMENTS ON ROMANIAN FARM INCOME: WHO BENEFITS FROM THE CAP?

Cristina Cionga, Lucian Luca and Carmen Hubbard

No 44840, 109th Seminar, November 20-21, 2008, Viterbo, Italy from European Association of Agricultural Economists

Abstract: Using the most recent available data, this paper assesses who is likely to benefit, in the short-term, from the implementation of the CAP in Romania. Particularly, it focuses on the distributional impacts of the new form of agricultural subsidies under the CAP, i.e. SAPS and CNDP, identifying the main gainers and losers. Preliminary results reveal a highly uneven distribution of subsidies across farms, with the very large-scale ones, particularly those specialised in so-called “energy” crops, benefiting most from the flat rate direct aid. As a result, the existing gap between Romanian low-income and high-income farms will become larger, with those most vulnerable hardly benefiting from the introduction of (national and EU) direct payments.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2008-11-14
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa109:44840

DOI: 10.22004/ag.econ.44840

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