Management Theory and Studies for Rural Business and Infrastructure Development, Volume 22

The assumptions and models of eu–wide unification of direct payments and the evaluation of their application impact

Vilma Dapkutė, Artiom Volkov

Abstract

In the 21st century’ farmers get more orientated to the market, but in most cases direct
support remains an integral part of farmers’ income in the EU. It has been a major help solving
problems associated with volatile market and ensuring the necessary quantity of public goods. In
2013 not only direct payments, but all the common agricultural policy is subject to modification.
EU-12 emphasize the necessity of allocating direct payments according to equal and objective
criteria throughout the EU, while EU-15 are considering the significant reform of direct payments
and even the abolition of the first pillar.
This article deals with the proposals on the level of unification of direct payments schemes
in EU for 2014–2020 budget period. The authors present the potential models of direct payments
under equal distribution principles throughout the EU and assess the impact of unified direct
payments on the results of agricultural activity in selected EU countries. The article also
provides for the most favorable option of direct payments unification for all EU Member States
and highlights the most useful option for Lithuania.

Keyword(s): common agricultural policy (CAP), EU budget, direct payments, unification, modeling


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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.