Do different types of Common Agricultural Policy subsidies promote farm employment?

Bojnec, Štefan; Fertő, Imre

doi:10.1016/j.landusepol.2021.105823

Cited by 37 publications

(22 citation statements)

References 53 publications

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“…Since the implementation of the agricultural subsidy policy, scholars have conducted fruitful research on the effect of agricultural subsidy policies but have not reached consensus [ 7 , 8 , 9 ]. From the perspective of agricultural subsidies’ effects on farmers’ initiative for growing grain, some scholars found that they have a marginal incentive effect and play a positive role for farmers who are uncertain about participating in grain planting, improving farmers’ enthusiasm for grain planting and increasing the sown area [ 10 ].…”

Section: Introductionmentioning

confidence: 99%

The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages

Sha

Sun

et al. 2022

IJERPH

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This paper builds a theoretical model based on a representative peasant household in the neoclassical model, comprehensively considers three types of farmer households in China, and evaluates the effects of the agricultural subsidy policy under equilibrium conditions. Based on the two bottom lines of guaranteeing China’s grain security and ensuring no large-scale return to poverty, this paper uses 2010, 2012, and 2014 tracking survey data from the Mutual Aid Fund for Poverty-Stricken Villages in China to construct an econometric model to evaluate agricultural subsidy effectiveness from the three aspects of farmers’ total sown area, total grain output, and total income. The research draws the following conclusions: (1) Agricultural subsidies can significantly increase the sown area, grain production, and total income of farmers in poverty-stricken areas, which is conducive to improving the farmers’ comprehensive capacity for grain production as well as income, and this conclusion remains valid after performing a series of robustness tests and solving endogeneity problems. (2) The effects of the agricultural subsidy policy are affected by natural conditions, economic development levels, and functional orientation of grain production in different regions, and they have divergent influences on farmers’ total sown area, total output, and total income. (3) Agricultural subsidies boost farmers’ willingness to cultivate grain, reduce land abandonment, and increase the total sown area, total output, and total grain income. The willingness to cultivate grain is an important mechanism that affects the effectiveness of the agricultural subsidy policy.

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Section: Introductionmentioning

confidence: 99%

The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages

Sha

Sun

et al. 2022

IJERPH

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“…In 2021, the CAP expenditure in the total EU expenditure was close to 25% [102]. The importance of this policy for the EU is implicit, considering the numerous CAP dimensions: economic, societal, environmental and food security [103][104][105]. Thus, selecting the EU countries as the sample for this study sets this research in a framework designed to generate practical solutions for delivering more efficient CAP measures in terms of capitalizing on sustainable economic competitiveness.…”

Section: Methodsmentioning

confidence: 99%

Deliver Smart, Not More! Building Economically Sustainable Competitiveness on the Ground of High Agri-Food Trade Specialization in the EU

Constantin

Sapena

Apetrei

et al. 2023

Foods

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Competitiveness has always been a multifaceted illusive concept, which has made it a real challenge for scholars and practitioners to find the most suitable measurement tools to completely encapsulate all the complex nuances of competitiveness. This becomes even more of a challenge when approached in relation to particular economic sectors. The agri-food sector is no exception, especially when considering all its interconnections with the other sectors: water, energy, transport, waste. All of them impact the achievement of the Sustainable Development Goals (SDGs). Similarly, scholars have been debating the meaning of sustainability for decades, some even arguing that it is a political, subjective, and, in some cases, self-contradictory concept. As far as the sustainability of agricultural competitiveness is concerned, the literature is still developing. It is much more focused on fostering environmental competitiveness, and less attention was paid to the strategies designed to capitalize on sustainable economic competitiveness—a concept that has attracted divergent opinions in the literature, mainly due to ambiguity. Thus, instead of falling into the pitfall of vagueness, this paper was aimed at bringing its contribution to this field by undertaking the research objective of exploring a single facet of sustainable agricultural competitiveness: the economic facet. Hence, this paper proposes the construction of the sustainable economic competitiveness index (SECI) with direct application for agri-food value chains. It consists of three attributes: (a) factor endowments, resource independence; (b) agricultural chain performance; and (c) national agricultural chain strategies and policies. In this study, SECI was tested against the cereal chain for a selection of EU countries, based on the data taken over from FAOSTAT and INTRACEN Trade Map, in the case of the 2011–2020 period. Various statistical and econometric methods were used to test the robustness of SECI. Results stand as proof that building sustainable agricultural economic competitiveness relies on a mix of strategic actions. The key vector in this mix is that trade flow patterns and policies must be calibrated in accordance with national factor endowments in order to achieve high levels of SECI. To add more managerial implications, this paper argues for the smart delivery of agri-food products with high added value instead of focusing on exporting big volumes of raw agricultural materials with little added value.

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“…According to a study of Qian [ 45 ], a 1% increase in agricultural subsidies reduces fertilizer use by an average of 3.4%, based on survey data from 2014 to 2018. According to the findings of a study based on farm-level data in Africa, fertilizer subsidy programs appear to be effective tools to increase farm efficiency [ 46 ].…”

Section: Introductionmentioning

confidence: 99%

Do Farm Subsidies Effectively Increase Grain Production? Evidence from Major Grain-Producing Regions of China

Yang

Chandio

Zhang

et al. 2023

Foods

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The purpose of this paper is to investigate the impact of agricultural subsidies on grain production in major grain-producing regions. We use an empirical model and data from fixed observation points in rural areas collected by the Ministry of Agriculture and Rural Affairs in 2016–2017. Our findings show that agricultural subsidies in major grain-producing regions have significantly increased rural household grain yield. Furthermore, findings show that agricultural subsidies and the cost of fertilizer and pesticides for rural households have a mediating effect on grain production. In addition, the effect of agricultural subsidies varies by type: income subsidies have a greater promotion effect on grain production, whereas subsidies for purchasing agricultural machinery have no significant promotion effect on grain production. These findings show that agricultural subsidies promote grain production in China’s major grain-producing regions, and have a mediating effect on different types of subsidies.

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Do different types of Common Agricultural Policy subsidies promote farm employment?

Cited by 37 publications

References 53 publications

The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages

The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages

Deliver Smart, Not More! Building Economically Sustainable Competitiveness on the Ground of High Agri-Food Trade Specialization in the EU

Do Farm Subsidies Effectively Increase Grain Production? Evidence from Major Grain-Producing Regions of China

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