Past and future effects of the Common Agricultural Policy in the Czech Republic

This article discusses the impact of the Czech Republic's accession to the European Union. Special emphasis is given to effects that have resulted from implementing the Common Agricultural Policy. Two approaches are applied. First, in an ex post analysis we address how accession has thus far in...

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Bibliographic Details
Published in:Post-communist economies 2009-12, Vol.21 (4), p.495-511
Main Authors: Sahrbacher, Christoph, Jelinek, Ladislav, Kellermann, Konrad, Medonos, Tomas
Format: Article
Language:English
Subjects:
Agricultural industry
Agricultural policy
Common Agricultural Policy
Comparative analysis
Czech Republic
Eastern Europe
Empirical research
EU membership
European integration
Farm income
Farming
Impact analysis
Management of change
Planning methods
Simulation
Structural change
Studies
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Summary:This article discusses the impact of the Czech Republic's accession to the European Union. Special emphasis is given to effects that have resulted from implementing the Common Agricultural Policy. Two approaches are applied. First, in an ex post analysis we address how accession has thus far influenced structural changes and the income situation. Second, in an ex ante analysis we apply the agent-based model AgriPoliS to simulate the impact of decoupling top-up payments on structural change, farm income and payment redistribution. In the ex post analysis, it is observed that structural change is still influenced by the transformation process. Farm income partially follows the increase of payments, but there is also a capitalisation of payments into factor prices for land, labour and other inputs. Furthermore, simulations support empirical findings that accession slows down structural change compared to a scenario without accession, while decoupling top-ups in 2009 has no significant impact on structural change. However, depending on the type of decoupling, a redistribution of payments among farmers can be observed.
ISSN:1463-1377
1465-3958
DOI:10.1080/14631370903339872