Subsidies for less favoured areas and farm size
2007
Štolbová, M., Výzkumný ústav zemědělské ekonomiky, Praha (Czech Republic)
Differentiation of LFA (less favoured areas) payments contribute to fulfilment of the LFA measure objectives. Special attention is paid to the compensatory payments differentiation according to the farm size, for this criterion will be introduced as compulsory in 2010. The current system of LFA support in the Czech Republic results in great inequalities among enterprises with regard to the amount of the obtained LFA payments per hectare of agricultural land as well as per annual work unit (AWU). It is suggested that the eligible area should be extended for the measure to be as compatible to the EU 15 practices as possible. In the Czech Republic the small and medium-sized farms which present the target of the less favoured area subsidies in most EU 15 countries only work on 12% of agricultural land of the LFA. An insensitive application of payments modulations might result in reduced job opportunities and overall attractiveness of the rural countryside of the LFA.
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