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Development of a multifunctional agriculture: German experience

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  • O. Popova

Abstract

The article generalizes the experience of Germany to in the realization a multifunctional (economic, social and environmental) role of agriculture in society. Significantly exceeding the macroeconomic indicators of agriculture in Germany (in Ukraine, the sector's share in GVA is an order higher, and the rates of employment and agricultural use are higher), Ukraine is significantly inferior in terms of productivity: agricultural GVA per employee is an order lower grain yield per harvested area is half as in Germany. Ukraine has a distorted structure of agriculture with a predominance of crop production (accpounts for 76% of farm revenues), while in Germany the main source of incomes in agriculture is livestock (providing 60% of revenues). Based on the analysis of the two countries' agricultural profile ministries, the author reveals significant structural differences in the direction of budget expenditures (in Germany, 2/3 is constantly spent on social policy in agriculture), as well as beneficiaries of aid funds (in Ukraine it is not the farmers, but intermediate entities). The author considers individual directions and patterns of agricultural policy and practices to be implemented beginning with 2015 pursuant to the tasks of the EU Common Agricultural Policy. Namely strengthening the "greening" with the legal consolidation of the provision that 30% of decoupled support will depend on favorable (for the environment and climate) technologies in agricultural production. In the interests of rural development, the tasks include an annual grant of 4.5% of the maximum amount of the national budget as decoupled government aid (European Scheme "Modulation").

Suggested Citation

  • O. Popova, 2015. "Development of a multifunctional agriculture: German experience," Economy and Forecasting, Valeriy Heyets, issue 2, pages 148-158.
  • Handle: RePEc:eip:journl:y:2015:i:2:p:148-158
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