How Far Are We from Income Parity in Agriculture? Evidence from Poland (2004–2019)

Aleksandra Pawłowska and Renata Grochowska

Gospodarka Narodowa. The Polish Journal of Economics, 2025, issue 2, 49-69

Abstract: The European Union’s Common Agricultural Policy (CAP) aims to prevent income insufficiency among farmers, a problem rooted in both natural and economic constraints that determine the allocation of production factors and the sector’s depreciation through market mechanisms. Our study examines how changes in policy priorities and instruments have influenced income disparity in the agricultural sector. Since each instrument impacts income differently, we considered all CAP payments and applied the Generalised Propensity Score method to minimise selection bias. Our findings indicate that unsubsidised farms initially outperformed those receiving minimal subsidies. Over time, however, increased financial support became essential to sustaining income parity between agriculture and other economic sectors. Despite recent policy changes and increased support, full income parity has yet to be achieved.

Keywords: income; farm; agricultural policy; counterfactual analysis (search for similar items in EconPapers)
JEL-codes: C54 Q18 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sgh:gosnar:y:2025:i:2:p:49-69

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