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Differences in income of the agricultural population between European Union countries and directions of their changes

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  • Runowski, Henryk

Abstract

The income of the population determines the possibilities of satisfying individual types of their needs and, as a result, constitutes a determinant of the level of quality of life. This also applies to the agricultural population. The aim of the study is to present the differentiation of the income of the agricultural population between the European Union countries, the observed directions of changes in this area and to assess the impact of the mechanisms of supporting agricultural income in the EU on the income situation in agriculture. Data on the income situation in agriculture of individual countries from Eurostat, the Central Statistical Office, FADN and literature on the subject were used. The analysis covers the period from Poland's accession to the European Union, i.e. from the first full year (2005) to 2015 or 2016, depending on the available statistical data. The conducted research shows that the Common Agricultural Policy focuses largely on striving to ensure appropriate income from agricultural activity. The solutions applied in the field of supporting the income of the agricultural population in the form of direct payments only to a certain extent ensure an increase in income in agriculture, among others due to the "drainage" of the economic surplus from agriculture. In turn, other forms of support used primarily constitute compensation for increased production costs in farms, incurred, among others, in connection with the provision of public goods. Additionally, agricultural incomes show significant variability over time. It is also interesting that in the same years, in some countries there is an increase, while in others a decrease in agricultural incomes. The problem of ensuring agricultural incomes characterized by low variability over time remains, as indicated by the conducted analyses. In this situation, it seems necessary to search for additional sources of income, as well as to introduce a system of agricultural income insurance, in order to mitigate the effects resulting from the changing production and economic situation in agriculture.

Suggested Citation

  • Runowski, Henryk, 2018. "Differences in income of the agricultural population between European Union countries and directions of their changes," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 179(2), June.
    • Handle: RePEc:ags:polvaa:344512
    DOI: 10.22004/ag.econ.344512
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    References listed on IDEAS

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    1. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    2. Euan Phimister & Deborah Roberts & Alana Gilbert, 2004. "The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 197-220, July.
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