Impact of direct payments for agricultural production: one-year experience in Lithuania
2005
Povilaitis, R.(Lithuanian Univ. of Agriculture, Akademija, Kauno reg. (Lithuania)) | Urbikaite, J.(Vytautas Magnus Univ., Kaunas (Lithuania)) | Tirviene, J.(Vytautas Magnus Univ., Kaunas (Lithuania)) | Mazylis, L.(Vytautas Magnus Univ., Kaunas (Lithuania))
System of direct payment for agricultural production, as a part of the common agricultural policy of the European Communities, are commonly seen as the instrument for equalization of incomes of agricultural producers thus becoming important tool for public policy in order to ensure cohesion and avoiding divide. Lithuania, as new member of the European Union, has experienced multiple impacts when introducing aforementioned system since May 1st, 2004. A number of methods such as institutional analysis, analysis of statistical data and economic variables, opinion polls, focus group interviews have been used in order to analyse different aspects of the impact - administrative, economic and social. Administrative challenges were related with the need to involve administrative institutions of different levels (national, regional, local, sub-local) into the process of evaluation, paying and control. The need of involvement of producers themselves into new and complicated process of declaration of cattle and crop could be mentioned as another challenge.
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