Journal of Agribusiness and Rural Development (Jan 2011)
Problems of direct payments in polish agriculture in 2004-2010
Abstract
The main aspect of the paper is evaluation of direct payments which were introduced in the European Union Member States in 1992. The aim of direct payments was to compensate of agricultural income fall and achieve competition in European agricultural market. In Polish conditions there was introduced single area payment system (SAPS) which was not connected to quantity of production. Ruling in EU-15 single payment scheme (SPS) based on historical model let for achieving higher area payments. In 2004 the level of support was 55% in order to be increased to 100% in 6 years to the level estimated in the Accession Treaty in Athens in 2003. It remains on lower level than in EU-15 member States. In 2004-2010 farmers used to submit about 1.4 mln declarations every year, what was 82.3% of all farms with area exceeding 1 ha. And the rate of financial support was increased from 1.5 bln to 2.5 bln euro. In perspective of rural policy vision after 2013 is alignment of direct payments NUE-10 with the ones which are accepted in EU-15 Member States.
