Past and future effects of the Common Agricultural Policy in the Czech Republic

Christoph Sahrbacher, Ladislav Jelinek, Konrad Kellermann and Tomas Medonos

Post-Communist Economies, 2009, vol. 21, issue 4, 495-511

Abstract: This article discusses the impact of the Czech Republic's accession to the European Union. Special emphasis is given to effects that have resulted from implementing the Common Agricultural Policy. Two approaches are applied. First, in an ex post analysis we address how accession has thus far influenced structural changes and the income situation. Second, in an ex ante analysis we apply the agent-based model AgriPoliS to simulate the impact of decoupling top-up payments on structural change, farm income and payment redistribution. In the ex post analysis, it is observed that structural change is still influenced by the transformation process. Farm income partially follows the increase of payments, but there is also a capitalisation of payments into factor prices for land, labour and other inputs. Furthermore, simulations support empirical findings that accession slows down structural change compared to a scenario without accession, while decoupling top-ups in 2009 has no significant impact on structural change. However, depending on the type of decoupling, a redistribution of payments among farmers can be observed.

Date: 2009
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DOI: 10.1080/14631370903339872

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