THE ROLE OF PRO-INVESTMENT MECHANISMS OF THE COMMON AGRICULTURAL POLICY IN ASSET REPRODUCTION OF FARMS IN CENTRAL AND EASTERN EUROPE

Krzysztof Pawłowski1, Wawrzyniec Czubak2
1, 2 Faculty of Economics and Social Sciences, Poznań University of Life Sciences
https://doi.org/10.22630/ESARE.2019.3.13
Pawłowski, Krzysztof; ORCID: 0000-0001-7194-4779 (Faculty of Economics and Social Sciences, Poznań University of Life Sciences)
Czubak, Wawrzyniec; ORCID: 0000-0002-0826-8461 (Faculty of Economics and Social Sciences, Poznań University of Life Sciences)
THE ROLE OF PRO-INVESTMENT MECHANISMS OF THE COMMON AGRICULTURAL POLICY IN ASSET REPRODUCTION OF FARMS IN CENTRAL AND EASTERN EUROPE
Economic Sciences for Agribusiness and Rural Economy, 2019, vol., nr 3, s. 103-111

Słowa kluczowe

common agricultural policy central and eastern europe pro-investment mechanisms

JEL Classification

Q12 Q14 Q18

Streszczenie

The aim of this paper is to identify the role and importance of pro-investment mechanisms within the CommonAgricultural Policy in the reproduction of farm assets in countries of Central and Eastern Europe. Theexperimental material comprised unpublished microdata of farms originating from the FADN database of theEuropean Commission (data source: EU-FADN – DG AGRI). The time frame covered the years 2004–2015.Among all the farms selected for analyses only those ensuring data continuity throughout the entire investigatedperiod were used in the study. In each of the studied countries farms were divided into two groups: thegroup of beneficiaries of CAP pro-investment funds and the control group. For each farm the value of fixedassets was determined (excluding the value of land) and next the mean value for each group was calculatedin an individual country. The study showed that in most investigated countries both farms being and thosenot being beneficiaries of CAP pro-investment mechanisms are capable of reproducing their fixed assets;nevertheless, it is the farms receiving financial support for their investments that show a capacity to increasethe value of their fixed assets.

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