The impact of agricultural policy on income diversity among farmers in the European Union in 2005–2017
The impact of agricultural policy on income diversity among farmers in the European Union in 2005–2017

Summary/Abstract: es the differences in the average agricultural income between the EU-15 countries and those thatjoined the EU in 2004. The hypothesis was assumed that the CAP subsidies reduce the differences inagricultural income between these two groups of countries. Spreads between average income of farmersfrom the old and new members were calculated. The analysis is carried out in two variants. In the firstone, the agricultural income does not include the CAP support, in the second one the agriculturalincome covers all CAP subsidies. The spatial scope of research involves two groups of countries: EU-15(Belgium, the Netherlands, Luxembourg, France, Germany, Italy, the United Kingdom, Denmark,Ireland, Greece, Spain, Portugal, Finland, Austria and Sweden) and EU-8 (the Czech Republic,Poland, Slovakia, Lithuania, Latvia, Estonia, Hungary and Slovenia). The subjective scope of thesurvey covers representative farms from the EU countries (representing 4,045,300–5,295,930 farmsin the EU countries, depending on the investigated year). The time frame of the analyses concerns theyears 2005–2017. The data from the Farm Accountancy Data Network (FADN) are used. The studypositively verifies the hypothesis that: subsidies from the CAP cause a decrease in the differences inaverage agricultural income between the EU-15 and the EU-8 countries. This contributes to an increasein economic sustainability and in the territorial cohesion of agriculture for the EU countries.

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