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

Author

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

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.

Suggested Citation

  • Cionga, Cristina & Luca, Lucian & Hubbard, Carmen, 2008. "The Impacts Of Direct Payments On Romanian Farm Income: Who Benefits From The Cap?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44840, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa109:44840
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    File URL: http://purl.umn.edu/44840
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    Cited by:

    1. Hubbard, Carmen & Luca, Lucien & Luca, Mihaela & Alexandri, Cecilia, 2014. "Romanian farm support: has European Union membership made a difference?," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(2), August.
    2. Galluzzo, Nicola, 2015. "Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212659, European Association of Agricultural Economists.
    3. Biro Boroka Julia, 2015. "Evolution Of The Income Situation Of Romanian Small Farms Between 2007 And 2013," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 119-125, August.
    4. Ramona Olivia Ștefănescu-Mihăilă, 2016. "Rural Economy and Bioethanol Production," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-19, November.

    More about this item

    Keywords

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

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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