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Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic

Author

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  • Marie Šimpachová Pechrová

    (Institute of Agricultural Economics and Information, Mánesova 1453/75, 120 00 Prague 2, Czech Republic)

  • Ondřej Šimpach

    (Faculty of Informatics and Statistics, University of Economics Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic)

Abstract

To ensure the generation renewal in the European Union there are subsidies for setting up of young farmers' businesses and the retirement scheme and top-up direct payments. In the Czech Republic are provided subsides to interest rates with preference of young farmers and intergenerational succession of the farm is tax-free. Together with other incentives, those factors shall facilitate enter of young people to the sector. The aim of the paper is to assess whether the policy measures help the young farmers with setting-up of their business. Based on the primary survey on 510 young Czech farmers the most motivating for enter the sector were tax relief on transfer of the holding and top-up payment for young farmers. The farmers without background considered as sufficiently motivating the top-up payments more often than those with certain background who acknowledged more the top-up subsidies. Possible way how to facilitate the enter to the sector could be to keep the tax relief on farm transfer, to combine the measures for retirement and setting up of young farmers and provide investment subsidies or financial instruments for start-up. Top-up payments, despite motivational according to the farmers, are criticized as inefficient.

Suggested Citation

  • Marie Šimpachová Pechrová & Ondřej Šimpach, 2020. "Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 255-262.
    • Handle: RePEc:mup:actaun:actaun_2020068010255
    DOI: 10.11118/actaun202068010255
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    References listed on IDEAS

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    1. Davis, John & Caskie, Paul & Wallace, Michael, 2013. "Promoting structural adjustment in agriculture: The economics of New Entrant Schemes for farmers," Food Policy, Elsevier, vol. 40(C), pages 90-96.
    2. Carbone, Anna & Subioli, Giovanna, 2008. "The Generational Turnover In Agriculture: The Ageing Dynamics And The Eu Support Policies To Young Farmers," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44731, European Association of Agricultural Economists.
    3. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2018. "Aging population, farm succession, and farmland usage: Evidence from rural China," Land Use Policy, Elsevier, vol. 77(C), pages 437-445.
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    Cited by:

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    2. Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    3. Breitenbach, Raquel & Foguesatto, Cristian Rogério, 2023. "Should I stay or should I go? Gender differences and factors influencing family farm business succession in Rio Grande do Sul, Brazil," Land Use Policy, Elsevier, vol. 128(C).

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