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Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania

Elodie Douarin () and Laure Latruffe ()

No 10-08, Working Papers SMART from INRAE UMR SMART

Abstract: This paper investigates the potential impact of post EU-accession public support, namely the introduction of the decoupled Single Area Payment (SAP), in Lithuania on its farming sector’s restructuring and future efficiency. Analyses are based on efficiency calculations with 2001-2002 FADN data for fieldcrop farms, and on the same sample’s farmers’ intentions to remain in the sector and to expand their area post EU-accession under two scenarios: a hypothetical scenario of continuing pre-accession national policies, and a realistic scenario of fully decoupled SAP introduction with coupled national top-ups. Our results suggest that, before accession to the EU, the smallest inefficient farms remained in the sector thanks to the policy support. However, the SAP introduction could potentially give the right incentives to Lithuanian farmers for a quicker restructuring and an increase in farm efficiency, although such change may be impeded by the lack of available agricultural land.

Keywords: Single Area Payment; technical efficiency; size; subsidies; Lithuania (search for similar items in EconPapers)
JEL-codes: D24 Q12 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2010
New Economics Papers: this item is included in nep-agr and nep-tra
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http://ageconsearch.umn.edu/bitstream/210384/2/WP%20SMART-LERECO%2010.08.pdf (application/pdf)

Related works:
Journal Article: Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania (2011) Downloads
Working Paper: Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania (2010) Downloads
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