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Will the EU Single Area Payment decrease farm efficiency in the New Member States?

  • Douarin, Elodie
  • Latruffe, Laure

This paper starts the debate regarding the likely impact of post-accession public support in the New Member States on their farming sector’s efficiency. While one aim of farm support in the European Union (EU) is to promote efficient farms that can compete internationally, a higher level of support via the Single Area Payment (SAP) may have adverse effects on farms’ performance. Analyses using pre-accession technical efficiency scores calculated with Data Envelopment Analysis (DEA) and post-accession farmer’s intentions, lead to the conclusion that the implementation of the SAP may decrease farm efficiency. The main reasons are the negative link between farm efficiency and subsidies already present in pre-EU accession Lithuania, and the change in incentives given to less efficient farms by the introduction of SAP.

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File URL: http://purl.umn.edu/51625
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Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51625.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51625
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  7. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 305-29, August.
  8. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
  9. Laure Latruffe & Hervé Guyomard & Chantal Le Mouël, 2009. "The role of public subsidies on farms’ managerial efficiency: An application of a five-stage approach to France," Working Papers SMART - LERECO 09-05, INRA UMR SMART.
  10. James Rude, 2000. "An Examination of Nearly Green Programs: Case Study for Canada," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 755-761.
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