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Evaluation of the Effect of Subsidies on the Production Capability of Land in Selected Regions of the Czech Republic

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  • Pletichová, Dobroslava
  • Gebeltová, Zdeňka

Abstract

A decline in the production capability of land affects the creation of farmers’ revenues, the effective utilization of agricultural land, its qualitative and quantitative degradation, as well as the competitiveness of Czech agriculture. The results of the IAEI Prague research show that the annual economic loss due to a decline in the quality of land in the Czech Republic within the analyzed period of the years 2009-2012 is approximately CZK 385 mil. (MoA, 2012a). The aim of the article is to evaluate the potential connections between the change in the quality of land and selected subsidies that should primarily be affecting the effective utilization of agricultural land and the continual sustainability of its production capability. In the research, the methods of correlation and comparison were used. The relationship between the amount of paid subsidies (SAPS+TNA, AEM, LFA) and after changing the production ability of soils (difference GARE) was not confirmed. A statistically significant relationship was found only in the subsidies NATURE 2000.

Suggested Citation

  • Pletichová, Dobroslava & Gebeltová, Zdeňka, 2015. "Evaluation of the Effect of Subsidies on the Production Capability of Land in Selected Regions of the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(4), pages 1-12, December.
    • Handle: RePEc:ags:aolpei:231898
    DOI: 10.22004/ag.econ.231898
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