Impact of Common Agricultural Policy on technical efficiency of farms
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Government intervention in the economy is the main stream of economics in this monograph. Analysing the literature, it can be noticed that the CAP subsidies may exert influence in many ways. They affect: 1. Agricultural land market (demand, prices and lease rent); 2. Cost of capital in agriculture; 3. Improvement in creditworthiness of farmers (better credit scoring); 4. Smaller risk aversion of farmers and greater motivation for undertaking long-term pro-development investments; 5. Mechanisation (equity replacement rate, modernity, productivity); 6. Financial situation of farmers (income leve...
Government intervention in the economy is the main stream of economics in this monograph. Analysing the literature, it can be noticed that the CAP subsidies may exert influence in many ways. They affect: 1. Agricultural land market (demand, prices and lease rent); 2. Cost of capital in agriculture; 3. Improvement in creditworthiness of farmers (better credit scoring); 4. Smaller risk aversion of farmers and greater motivation for undertaking long-term pro-development investments; 5. Mechanisation (equity replacement rate, modernity, productivity); 6. Financial situation of farmers (income level, financial liquidity); 7. Agricultural markets, marketing and processing as well as agricultural production itself; 8. Trade (export of agri-food products); 9. Scientific and technical progres (obtained certificates for specificity/quality of agricultural production and adapting farms to EU standards; EU-financed training of farmers); 10. Labour market in rural areas and generational change. The aim of the study was to analyse how grants influence the technical efficiency of large-scale farms in Poland.
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