Investment Supports to the Czech Farms and Their Expected Future Under the CAP 2020

Proceeding of the International Scientific Conference "Strategies for the Agri-Food Sector and Rural Areas - Dilemmas of Development", 19-21 June 2017, Licheń Stary, Poland

Multi-Annual Programme 2015-2019 "The Polish and the EU Agricultures 2020+. Challeges, Chances, Threats, Proposals" No 52.1; ISBN 978-83-7658-690-8

11 Pages Posted: 25 Jan 2018

See all articles by Tomas Doucha

Tomas Doucha

Institute of Agricultural Economics and Information

Marie Pechrova

Institute of Agricultural Economics and Information

Ondrej Chaloupka

Institute of Agricultural Economics and Information

Date Written: 2017

Abstract

Investment supports to the Czech farms as grants under the measure 4.1.1. Investment to agricultural holdings of the Rural Development Programme 2014-2020 represent about 70% of all investment supports to farms. Under the grant system, the government is seriously responsible for a proper allocation of public sources on individual farms – applicants for supports. A special model (“calculator”) is applied as the main instrument for calculation of the criterion (payback period of the investment) for the allocation. The aim of the paper is to discuss problems linked with the grant system (and the “calculator”) and to reveal its risks and bottlenecks as moral hazards of the state, dead weight losses and leakage of supports to suppliers. From this, financial instruments for credits, already successfully applied in the Czech Republic (activities of the Support Guaranty Farm and Forestry Fund), could be a better solution to be used under the Common Agricultural Policy 2020 for supports to “productive” investments on the Czech farms.

Keywords: agriculture, dead weight, investment

JEL Classification: H23, H43, H54

Suggested Citation

Doucha, Tomas and Pechrova, Marie and Chaloupka, Ondrej, Investment Supports to the Czech Farms and Their Expected Future Under the CAP 2020 (2017). Proceeding of the International Scientific Conference "Strategies for the Agri-Food Sector and Rural Areas - Dilemmas of Development", 19-21 June 2017, Licheń Stary, Poland, Multi-Annual Programme 2015-2019 "The Polish and the EU Agricultures 2020+. Challeges, Chances, Threats, Proposals" No 52.1; ISBN 978-83-7658-690-8, Available at SSRN: https://ssrn.com/abstract=3102899

Tomas Doucha (Contact Author)

Institute of Agricultural Economics and Information ( email )

Mánesova 1453/75
120 00 Praha 2
Czech Republic

Marie Pechrova

Institute of Agricultural Economics and Information ( email )

Mánesova 1453/75
120 00 Praha 2
Czech Republic

Ondrej Chaloupka

Institute of Agricultural Economics and Information ( email )

Mánesova 1453/75
120 00 Praha 2
Czech Republic

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
207
PlumX Metrics