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The Impacts Of Direct Payments On Romanian Farm Income: Who Benefits From The Cap?

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  • Cionga, Cristina
  • Luca, Lucian
  • Hubbard, Carmen
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    Abstract

    Using the most recent available data, this paper assesses who is likely to benefit, in the short-term, from the implementation of the CAP in Romania. Particularly, it focuses on the distributional impacts of the new form of agricultural subsidies under the CAP, i.e. SAPS and CNDP, identifying the main gainers and losers. Preliminary results reveal a highly uneven distribution of subsidies across farms, with the very large-scale ones, particularly those specialised in so-called “energy” crops, benefiting most from the flat rate direct aid. As a result, the existing gap between Romanian low-income and high-income farms will become larger, with those most vulnerable hardly benefiting from the introduction of (national and EU) direct payments.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 109th Seminar, November 20-21, 2008, Viterbo, Italy with number 44840.

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    Date of creation: 14 Nov 2008
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    Handle: RePEc:ags:eaa109:44840

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    Related research

    Keywords: CAP; Single Area Payment Scheme; farm structure; Romania; Agricultural and Food Policy; Q18;

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