Polish Agriculture under Different Policy Scenarios: Impacts on Production and Farm Income

Abstract

The aim of the paper is to examine impacts of different rates of direct payments on production structures and farm incomes of Polish family farms after the accession to the EU. Analyses have been made for 2004, the assumed year of accession, with the use of a linear programming farm optimisation model. 15 farm types, further differentiated by soil quality, have been selected for the study. The modelling results show, that depending on the respective policy scenario (i.e. the rate of direct payments) the introduction of the Common Agricultural Policy (CAP) in Poland may cause some shifts in farm production. Under the conditions of Agenda 2000 and with 25 % of direct payments, as proposed by the European Commission, farm incomes would in 2004 approximately equate the 2001/2002 base level. However, not all types of farms would benefit from the accession.