Evaluation of the European Green Deal Policy in the Context of Agricultural Support Payments in Latvia

Abstract

The European Green Deal policy will significantly affect the resilience and development of agriculture, which will be determined by the 2021–2027 Common Agricultural Policy (CAP) reforms, entering into force in 2023. Therefore, the European Commission determines that at least 25% of the direct payments should be earmarked for eco-schemes, while 35% of the funding for rural development should be allocated to climate and environmental support measures. Support payments constitute a significant part of farmers’ income and guide their decision-making for production development. Therefore, the goal of the research was set by analysing the existing CAP support payment system in 2019 to determine the possible impact of the reform envisaged for 2023 on farms of various specialisations and sizes in Latvia. The analysis revealed that in Latvia in 2019, 83% of the total number of farms received support, the amount of the support was EUR 5616 per year per farm on average, and within the Single Area Payment Scheme (SAPS), the support was higher by 24%. Among the funding recipient farms, the support accounted for 28% of the farms’ income, calculated per 1 hectare. The detailed calculations carried out indicate that the possible base support payments as a result of the CAP 2023 reform are expected to be higher specifically in cattle breeding and dairy farming, which may contribute to even greater greenhouse gas (GHG) emissions in the future and thus reduce the likelihood of achieving the goals of the European Green Deal policy.

Smart agriculture for urban regions: Digital transformation strategies in the agro-industrial sector for enhanced compliance and economic growth

“…The aim of the study by I. Pilvere et al (2022) was to conduct a comprehensive assessment of the impact of the European Green Deal policy on Latvian agriculture, taking into account support payments. The analysis shows that the European Green Deal policy has already had a significant impact on the structure of agriculture in Latvia.…”

“…The introduction of modern technologies, such as IoT, agrotechnology and digital management systems, has contributed to increased productivity and reduced production costs. The effective use of technology has allowed agriculture to become a more efficient and profitable industry (Pilvere et al, 2022). In the EU, IoT technology is used to monitor the condition of animals, determine important parameters of animal husbandry, and automatically detect diseases.…”

A comparative view of the level of agricultural sustainability – The case of European Union member states

“…Therefore, the European Commission presented a far-reaching vision of a sustainable economy under the European Green Deal strategy (European Commission (EC), 2019;Siddi, 2020). It aims to minimise negative environmental impacts while maintaining the international competitiveness of the European Union (EU) and utilise effective instruments for the decarbonisation of the economies of the EU member states (Kiryluk-Dryjska et al, 2022;Pilvere et al, 2022).…”

“…Therefore, the European Commission presented a far‐reaching vision of a sustainable economy under the European Green Deal strategy (European Commission (EC), 2019; Siddi, 2020). It aims to minimise negative environmental impacts while maintaining the international competitiveness of the European Union (EU) and utilise effective instruments for the decarbonisation of the economies of the EU member states (Kiryluk‐Dryjska et al, 2022; Pilvere et al, 2022). Since agriculture is a sector, second to the energy industry, responsible for greenhouse gas emissions (11%) in the European Union (European Environmental Agency, 2023), the transition of agriculture towards a more sustainable and climate‐friendly sector could significantly contribute to achieving the goals of the Green Deal (Boix‐Fayos & de Vente, 2023).…”

Impact of the European Green Deal (EDG) on the Agricultural Carbon (CO2) Emission in Turkey

“…According to the UN Environment Programme, global temperatures could rise by more than 3℃ if we keep up our industrial habits [7]. Such a rise in temperature has the potential to ruin our economies, disrupt our industries, and drive more people into poverty [8]. Various methods of evaluating environmental issues have been developed due to growing concern for them worldwide and, more recently, among businesses and organizations [9].…”