Scholarly record
DO COMMON AGRICULTURAL POLICY SUPPORT PAYMENTS CONTRIBUTE TO THE SUSTAINABILITY AND RESILIENCE OF FARMS?
Abstract
The Common Agricultural Policy (CAP) is one of the most critical European Union (EU) policies, making a significant financial contribution to agriculture and rural development. As a result of CAP reforms, support payments change as they adapt to the global context, thereby contributing to economic, environmental, and social sustainability. Therefore, the present research aims to assess CAP support payments in the context of building more sustainable and resilient agriculture in EU Member States. The research employed indicators from the publicly available Farm Accountancy Data Network (FADN) database for 2014-2022. The research on farms in EU Member States showed that the amount of CAP support received indicated significant differences in farm performance between the Member States. However, the total amount of support has increased over the period analysed. On average, CAP support payments for rural development and decoupled direct payments accounted for 82% of total support. It could, therefore, be concluded that the CAP support payments contributed to the environmental and rural sustainability of EU Member States. Yet, in many Member States, the amount of support received by farms was higher than their net farm incomes, thereby reducing the resilience and sustainability of farms in the future if support payments are reduced in the following CAP reforms. The CAP support has contributed not only to an increase in farm net incomes but also to an increase in their total output value. It is therefore necessary to design future policies so that support payments contribute to the development of more sustainable, resilient, and environmentally friendly agriculture.
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