Management Theory and Studies for Rural Business and Infrastructure Development, Volume 34

Subjective approach to evaluation of direct support subsides contribution to farm income

Vlada Vitunskienė, Jurgita Baltušienė

Abstract

The paper presents the results of “The Impact of Agricultural Policy on Income Levels and Income Differentiation among Rural Inhabitants” project based on the subjective approach to the evaluation of economic effects of direct subsidies. The aim of the research is to uncover the beneficiaries’ estimations of direct payments’ contribution to the farm income generation as a whole. The research is based on primary data that were obtained from a quantitative survey of the beneficiaries of agricultural direct aid.

It was found that the contribution of direct payments (area payments and specific support payments in the beef, dairy and sheepmeat sector) to farm whole revenue generation was higher in larger farms, which are also the recipients of higher direct subsidies; farms in which farming is the main and full-time activity; farms in which income from farming is the main income source.

It was found that the contribution of compensatory payments (less favoured area payments and agri-environmental payments for organic farms) to farm whole revenue generation was higher in larger farms, which are also the recipients of higher direct subsidies; farms in which farming is a full-time activity; farms in which income from farming is the main income source for the family.

JEL codes: D190, D330, Q180.


Keyword(s): direct payments, compensatory payments, income, subjective approach


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.