Changes to the system of direct payments in the framework of the CAP reform for the years 2014–2020

Beata Kowalczyk
Warsaw University of Life Sciences – SGGW, Poland
Kowalczyk, Beata (Warsaw University of Life Sciences – SGGW, Poland)
Changes to the system of direct payments in the framework of the CAP reform for the years 2014–2020
Annals of Marketing Management and Economics, 2016, vol.2, nr 1, s. 39-51

Key words

direct payment system direct payment budget and rates CAP reform

Abstract

The article examines the changes that have been made to the direct payments system as a result of the most recent reform of the Common Agricultural Policy (CAP) for the years 2014–2020. It presents a model division of direct payment funds taken on by the countries and institutions of the EU, as well as changes to the national budgets and payments for 1 ha of agricultural land resulting from the redistribution and the ability to transfer funds between the CAP’s two pillars. It also presents solutions individual countries have used in choosing components available in the direct payment system and the division of national budgets allocated for their realisation. Results of the analysis show that the amount of direct payments in Poland has grown and that EU Member States have taken a variety of approaches to shaping the new national payment system.