Degressivity, capping and European farm structure: New evidence from Hungary

Szerletics, Ákos

doi:10.7896/j.1811

Cited by 10 publications

(7 citation statements)

References 5 publications

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“…From 2014 to 2016, the number of farms with over 1200 ha (affected by capping) decreased by 41%. On the other hand, the number of holding sizes 600-1200 ha and 300-600 ha increased by 36% and 15%, respectively (Szerletics, 2018). Since 2015 the value of the Gini coefficient has remained almost constant at around 0.785, which is now very close to the value of this indicator calculated for Bulgaria.…”

Section: Resultssupporting

confidence: 70%

Direct Payments Distribution Between Farmers in Selected New EU Member States

Sadłowski

Beluhova-Uzunova

Popp

et al. 2022

AOL

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The study aims to identify the degree of direct payments concentration in selected Central and Eastern European Member States (compared to the entire EU) and outline the perspectives and recommendations for the next programming period. The spatial scope of the study includes Poland, the Czech Republic, Hungary and Bulgaria. The time scope covers the period 2009–2019. The survey indicates that the payments distribution in Bulgaria, the Czech Republic, Hungary, and to a lesser extent also in Poland, is highly unbalanced. The analysed countries used the redistribution instruments, optional for the Member States, which were introduced by the 2013 CAP reform, to a moderate extent, in order to ensure a more even funds distribution between the beneficiaries. It cannot be ruled out that instruments ensuring a more even funds distribution would be politically easier to introduce at the EU level than at the national level. Nevertheless, also in the next financial perspective, in line with the subsidiarity principle, this issue is left to the Member States.

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Section: Resultssupporting

confidence: 70%

Direct Payments Distribution Between Farmers in Selected New EU Member States

Sadłowski

Beluhova-Uzunova

Popp

et al. 2022

AOL

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“…In response to this concentration of funds, some Members States have introduced, 'capping', setting a ceiling to these payments, making it unattractive to extend the farm above a certain size. The result has been that farms have been split on paper, which does not change the practice (Szerletics, 2018). This effect is also expected by Appel et al (2019).…”

Section: Discussionmentioning

confidence: 72%

Land Policy for Rural Development in the European Union and its Impact on Access to Land

Altes

2022

European Countryside

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The concentration of farmland has potentially a negative impact on planning for local rural development as it impedes access to land for other rural initiatives. Land policies in the European Union aiming to reserve lands for local communities are constrained by principles of the EU single market, such as the free movement of capital and the freedom of establishment. Especially in several Central and Eastern European member states, the European Commission has critically reviewed policies to shield lands from the single market. This paper reviews and analysis this issue in relation to the planning for rural communities.

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“…The CXXII land law (Act, 2013) in 2013 introduced the land ownership and land use limits (basically 1,200 ha and 1,800 under certain preferential conditions like livestock farms or seed producers). Based on HCSO data, the number of farmers over 2,500 ha and the total area used by them decreased by 12 -13% between 2010 and 2013, but in the following 3 years their number dropped to almost half, while their utilised agricultural area (UAA) fell by 40% (HCSO, 2016 (Szerletics, 2018). In practice, this means that farms that use more than 1,200 ha agricultural land started to split up to comply with the statutory requirements of the new land law and, on the other hand, not to lose their basic payment.…”

Section: Resultsmentioning

confidence: 99%

The economic impacts of the 2013 reform on the Hungarian agriculture

Mizik¹

2019

Research for Rural Development

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The impacts of agricultural policies are decisive on the agricultural sector, especially in the case of the European Union's (EU) Common Agricultural Policy (CAP). The 2013 CAP reform introduced several new measures. In budgetary terms, basic payment and greening were the most significant ones. Besides, coupled supports, young farmer and small farmers scheme should be mentioned. To reveal the changes caused by these measures, the time horizon of the study is 2013-2017. Since the subsidies represent a significant part of the income generated in the agricultural sector, the basic hypothesis of the study is that the production units concerned (individual farms, private enterprises) gave economically rational answers. In practice, this means trying to fully adapt to the changes to maximize support. Based on the analysed datasets (Hungarian Central Statistical Office and Hungarian State Treasury), it became evident that farmers responded rationally: splitting up farms against capping, moving towards the lowest resistance to comply with greening, plus associating them with the extra support of coupled payments. Generational renewal is a key issue; however, the present form of young farmers scheme needs to be refined to be more effective. Small farmers scheme is a good opportunity for farmers with less than 5.5 ha and most of the concerned farmers chose well. However, there are about 6,000 farms that are too small for the standard system, while 772 farms that are too large for the small farmers scheme.

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Degressivity, capping and European farm structure: New evidence from Hungary

Cited by 10 publications

References 5 publications

Direct Payments Distribution Between Farmers in Selected New EU Member States

Direct Payments Distribution Between Farmers in Selected New EU Member States

Land Policy for Rural Development in the European Union and its Impact on Access to Land

The economic impacts of the 2013 reform on the Hungarian agriculture

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