The new EU agricultural policy − continuation or revolution? no 99.1 Warsaw 2014 ISBN 978-83-7658-468-3 The new EU agricultural policy − continuation or revolution? The new EU agricultural policy − continuation or revolution? Editors: prof. dr hab. Andrzej Kowalski dr Marek Wigier mgr Małgorzata Bułkowska Warsaw 2014 The publication was prepared within the Multi-Annual Programme Competitiveness of the Polish food economy in the conditions of globalization and European integration The purpose of the study is to analyze the effects of CAP measures 2014-2020 for the agri-food sector and rural areas of selected EU Member States and third countries. Reviewer Prof. dr hab. Aleksander Grzelak, Pozna University of Economics Computer development Magorzata Bukowska Technical editor Joanna Gozdera Cover Project AKME Projekty Sp. z o.o. Foreword and chapters no 1, 4, from first part and 1, 2, 3, 4 from second part translated from Polish into English by Summa Linguae S.A. Individual authors of chapters shall be responsible for any possible errors. ISBN 978-83-7658-468-3 Instytut Ekonomiki Rolnictwa i Gospodarki ywnociowej – Pastwowy Instytut Badawczy ul. witokrzyska 20, 00-002 Warszawa tel.: (22) 50 54 444 faks: (22) 50 54 636 e-mail: [email protected] http://www.ierigz.waw.pl Contents Foreword 9 I. The new Common Agricultural Policy - economic perspective ........................................... 17 1. Evaluation of the potential of Polish agriculture and the impact of the new CAP programmes in 2014-2020 on increasing its competitiveness in the European Union and in the world ........................................................................................................................... 17 Dr hab. Piotr Chechelski 1.1. Introduction ................................................................................................................ 17 1.2. Changes in the development of Polish agriculture compared to the other countries of the European Union in the first decade of the 21st century .............................................. 18 1.3. Impact of new programmes under CAP in 2014-2020 resulting in an increase in competitiveness of the Polish agriculture in the European Union and in the world ......... 25 1.4. Summary .................................................................................................................... 34 2. Distributional and income effects of direct payments under the new CAP – the case of Germany ........................................................................................................................... 38 Prof. Werner Kleinhanss 2.1. Introduction ................................................................................................................ 38 2.2. Model, data and scenarios .......................................................................................... 38 2.3. Excursus: Effects of regional implementation of the Single Farm Payment Scheme (SPS) in Germany since 2005 ........................................................................................... 40 2.4. Summary and conclusions ......................................................................................... 47 3. Effects of the new agricultural policy on the specialised agricultural region of Mecklenburg-Western Pomerania (Germany) ..................................................................... 49 Dr Peter Sanftleben 3.1. Introduction ................................................................................................................ 49 3.2. Aspects of agriculture – long tradition ....................................................................... 49 3.3. The Common Agricultural Policy – legal proposals .................................................. 52 3.4. Discussion of consequences for the agricultural region of MWP .............................. 52 3.5. Consequences ............................................................................................................. 55 4. The new CAP and competitiveness of agricultural enterprises and the food industry .... 56 Dr Pierre-Yves Lelong, Mgr Sebastian Filipek-Kamierczak, Dr in. Joanna Pawowska- Tyszko 4.1. Introduction ................................................................................................................ 56 4.2. Implementation of CAP 2014-2020 in France ........................................................... 57 4.3. Development trends for CAP 2014-2020 in France .................................................. 59 4.4. Priorities of the new CAP .......................................................................................... 61 4.5. Conclusions ................................................................................................................ 62 5. Structural change in livestock sector as challenge for new CAP: Lithuanian case .......... 64 Artiom Volkov PhD 5.1. Introduction ................................................................................................................ 64 5.2. Impact of CAP direct payments on livestock farming in the EU members .................. 65 5.3. Impact of direct payments on the livestock sector during 2000-2012: Lithuanian case 68 5.4. Application of the direct payment scheme of the CAP for 2014-2020 in Lithuania 72 5.5. Conclusions ................................................................................................................ 74 6. The impact of the current and new agricultural policy on the development of the major crops in Bulgaria ................................................................................................................... 78 Bozhidar Ivanov PhD 6.1. Introduction ................................................................................................................ 78 6.2. Methodology .............................................................................................................. 80 6.3. The impact of the public support in the period 2007-2013 ........................................ 83 6.4. Changes in area and production ................................................................................. 85 6.5. Policy impact on different farm types and sizes ........................................................ 89 6.6. Conclusions ................................................................................................................ 92 7. Competitiveness of the Romanian agri-food trade and the new agricultural policies ..... 95 Dr Camelia Gavrilescu, Dr Dan-Marius Voicila 7.1. Introduction ................................................................................................................ 95 7.2. Material and method .................................................................................................. 96 7.3. Results and discussions .............................................................................................. 96 7.4. Conclusions .............................................................................................................. 104 II. The new Common Agricultural Policy - sustainability and socio-environmental goals ... 107 1. Financial aspects of sustainability of agriculture ........................................................... 107 Prof. dr hab. Jacek Kulawik, Dr in. Micha Soliwoda, Dr in. Joanna Pawowska-Tyszko 1.1. Introduction .............................................................................................................. 107 1.2. Taxation vs. efficiency and justice ........................................................................... 107 1.3. The instruments of sustainable agriculture – selected categories ............................ 109 1.4. Market and non-market mitigation instruments for externalities ............................ 112 1.5. Conclusions .............................................................................................................. 115 2. Changes in the socio-demographic structure of villagers and employment in individual agriculture ........................................................................................................................... 117 Dr in. Pawe Chmieliski, dr in. Boena Karwat-Woniak 2.1. Introduction .............................................................................................................. 117 2.2. The numbers and socio-economic structure for rural population ............................ 118 2.3. Changes in employment and the labour cost in individual farms ............................ 122 2.4. The demographic structure of persons managing individual farms ......................... 124 2.5. Conclusions .............................................................................................................. 128 3. Agriculture and climate change ...................................................................................... 130 Dr Konrad Prandecki 3.1. Introduction .............................................................................................................. 130 3.2. Climate change in the world .................................................................................... 130 3.3. Climate change and agriculture ............................................................................... 132 3.4. Agriculture in Poland and climate change ............................................................... 134 3.5. Conclusions .............................................................................................................