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

Lucian Luca (), Daniela Giurca and Cristina Cionga
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Lucian Luca: Institute of Agricultural Economics
Daniela Giurca: Institute of Agricultural Economics
Cristina Cionga: Romanian Maize Growers Association

Chapter Chapter 8 in Crisis after the Crisis: Economic Development in the New Normal, 2023, pp 107-117 from Springer

Abstract: 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.

Keywords: Coupled payments; Profitability; Net margin; Level of support (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-30996-0_8

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DOI: 10.1007/978-3-031-30996-0_8

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