PR - IMPACT OF THE 2014-2020 CAP REFORM ON THE ECONOMIC PERFORMANCE OF POLISH FARMS

Abstract:

The paper deals with potential impacts of the recent CAP reform on crop production structure and economic results of Polish farms in the perspective of the year 2020. The focus of the assessment was on the “greening” component, which is the key element of the reformed policy. The assessment was made with the use of static farm optimization model. Model results show that the reformed CAP on average will have a positive impact on farm incomes. A decrease in farm income can be seen, however, in certain types of farms that require major adaptations in order to fulfil the greening criteria, mainly establishing 5% of the Ecological Focus Area. Some changes in the cropping structure may be expected because of greening, mainly slight reduction of the share of cereals and a greater area of legume crops.