Impact of Budget Expenditures on Structural Changes and Income in Agriculture Under the Conditions of Cap Instruments Operated in Poland Cover Image

Wpływ wydatków budżetowych na zmiany strukturalne i dochody w rolnictwie w warunkach funkcjonowania w Polsce instrumentów WPR
Impact of Budget Expenditures on Structural Changes and Income in Agriculture Under the Conditions of Cap Instruments Operated in Poland

Author(s): Andrzej Czyżewski, Ryszard Kata, Anna Matuszczak
Subject(s): Agriculture, Governance, Economic policy, Public Finances
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: budget expenditures; agriculture; agricultural budget; production factors; Poland;

Summary/Abstract: Budget expenditure on agriculture is a means to achieve the objectives of agricultural policy. The expenditure of the Polish agricultural budget consists of national and European funds. The allocation, redistribution and stabilisation effects of budget expenditure on agriculture since the introduction of CAP instruments in Poland has been assessed in the context of the discussion on the modification of the Common Agricultural Policy in 2021–2027. It has been assumed that a significant increase in budget expenditure on agriculture since 2004 has had an impact on the allocation of factors of production in the sector and on farmers' income. The objective of the research was to determine the direction of budget expenditure’s impact on the concentration of factors of production in agriculture and on the level, stability and variability of farmers' income. It has been demonstrated that budget expenditure is positively related to the concentration of land resources and the concentration of capital expenditure in agriculture. The redistribution effects of the increase in budget expenditure are an actual increase in agricultural income and a reduction in the income gap between farmers and other social and occupational groups. The stabilisation effects of budget expenditure have been confirmed, as the income from a family farm including subsidies shows much less variability than income obtained only on the market. Budget transfers in the form of subsidies supporting farmers' incomes are not able to reverse the progressing polarisation of farm incomes, but they mitigate the growing inequalities.

  • Issue Year: 2020
  • Issue No: 6
  • Page Range: 781-811
  • Page Count: 31
  • Language: Polish
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