Input subsidies in the Slovak agricultural policy
1999
Blaas, G. (Vyskumny Ustav Ekonomiky Polnohospodarstva a Potravinarstva, Bratislava (Slovak Republic))
The contribution explains the procedure used by the author in proposing of the modified tool of agricultural support policy - direct payments aimed at the compensation of the income loss of the farmers in consequence of the market conditions deterioration during the economic reform. The author proves on the 1995-1997 data that the presently valid input subsidies do not influence the increase of production input consumption, but that they have a basically compensation function with regard to the income deficit of the sector having emerged after the price liberalization after 1991. However, they impact the price development of agricultural inputs, through which a part of these public resources is schifted to the sectors inputs for agriculture. The proposed area based flat rate compensation payments should be able to change these negative phenomena.
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