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Utilisation of subsidy in a program-directed support of agricultural loans

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  • V. Bečvářová

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

Abstract

The paper is focused on the performance measurement of the Support and Guarantee Fund for Farmers and Forestry (SGFFF) as the main instrument of capital reinforcement of Czech agricultural enterprise development. Its principles as well as the function from the point of view of agricultural enterprises, restructuring and allocation of resources and the reason why the subsidies of the supported loans' interest rates have been employed are cleared up there. The results are discussed upon an analysis of the Fund's activity. According to them, it can be claimed that the Fund has became an important part of supports for the agricultural sector development in the last ten years. From the point of view of the criteria of supported loans allocation, it was ascertained that the level of support has not been derived from the different natural and soil qualities primarily. The economic results and a high level of the prosperity have been evaluated as the main criteria for the decision-making system regarding an effective restructuring of agriculture and improving its competitiveness.

Suggested Citation

  • V. Bečvářová, 2006. "Utilisation of subsidy in a program-directed support of agricultural loans," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(7), pages 311-320.
    • Handle: RePEc:caa:jnlage:v:52:y:2006:i:7:id:5028-agricecon
    DOI: 10.17221/5028-AGRICECON
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    References listed on IDEAS

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    1. Sanghoon Ahn, 2002. "Competition, Innovation and Productivity Growth: A Review of Theory and Evidence," OECD Economics Department Working Papers 317, OECD Publishing.
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