Complementary CAP Direct Payments from the National Budget and the Farm Income Issue in Slovenia

Miroslav Rednak, Stane Kavcic, Tina Volk and Emil Erjavec ()

Eastern European Economics, 2003, vol. 41, issue 6, 26-42

Abstract: The estimation of gross value added (GVA), applying the extended economic account for agriculture (EAA) model and the partial equilibrium APAS-PAM model, is carried out to emphasize the importance of complementing the Common Agricultural Policy (CAP) direct payments from the national budget for farm incomes in Slovenia after its accession to the European Union (EU). Adopting the EU position of complementing direct payments up to the 40 percent level, a significant decline of farm incomes at the aggregate level could be expected as a result of depressed price levels. Complementary direct payments up to the 100 percent level would not result in significant improvement of agricultural income, but would drastically change the support hierarchy of agricultural commodities in Slovenia.

Date: 2003
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