Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania
AbstractThis 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.
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Bibliographic InfoPaper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 10-08.
Length: 29 pages
Date of creation: 2010
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Web page: http://www.rennes.inra.fr/smart_eng/Working-Papers-SMART-LERECO
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Single Area Payment; technical efficiency; size; subsidies; Lithuania;
Other versions of this item:
- Elodie Douarin & Laure Latruffe, 2011. "Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 87-103.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-12-11 (Agricultural Economics)
- NEP-ALL-2010-12-11 (All new papers)
- NEP-TRA-2010-12-11 (Transition Economics)
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