Diversification of Agricultural Income among the European Union Member States and the Directions of Its Changes
DOI:
https://doi.org/10.53098/wir022018/04Keywords:
agricultural income, income support mechanisms, income diversification, EU Member StatesAbstract
Income determines the possibilities of satisfying individual types of needs and, as a result, constitutes a determinant of life quality level. This also applies to the agricultural population. The aim of the study is to present the diversity of agricultural income among the European Union Member States, the observed directions of changes in this area and to assess the impact of EU income support mechanisms on the income situation in agriculture. Data used for examination of agricultural income in particular Member States originated from Eurostat, the Central Statistical Office, FADN and literature. The analysis covers a period from Poland’s accession to the European Union, i.e. the first full year 2005 to 2015 or 2016, depending on the available statistical data. The research shows that the Common Agricultural Policy focuses largely on the pursuit of ensuring adequate income from agricultural activity. The applied solutions in the field of agricultural income support in the form of direct payments ensure income increase only to a certain extent, while contributing, among others, to “drainage” of the economic surplus from agriculture. On the other hand, other forms of support are used primarily to compensate for increased production costs on farms, which are incurred, among others, in connection with the supply of public goods. In addition, agricultural income shows considerable variability over time. It is also interesting that in the same years an increase in agricultural income is observed in some Member States and decline in the others. As demonstrated by the analyses conducted, the problem of ensuring agricultural incomes characterized by low variability in time remains unresolved. In this situation, it seems necessary to look for additional sources of income, as well as introduce an agricultural income insurance system, in order to mitigate the effects of changing production and economic situation in agriculture.References
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