HOW COULD THE CAP MEASURES IMPACT FAMILY FARMS IN AREAS WITH NATURAL CONSTRAINTS IN SERBIA
Article Sidebar
Published:
Dec 15, 2022
Keywords:
areas with natural constraints, linear programming, simulation of policy scenarios, Serbia.
Main Article Content
Abstract
Areas with natural constraints are mountains or other areas where physical landscape results in higher production costs and lower yields. These areas are characterised by undeveloped infrastructure, tendencies to depopulation and resource degradation. The European Union has been providing support for farmers in the areas with natural constraints for the continued use of agricultural land, maintaining the countryside, and promoting a sustainable farming system. The Republic of Serbia is in the process of integration into the European Union and, therefore, seeks to harmonise the national policy to the Common Agricultural Policy. However, the policy toward areas with natural constraints in Serbia does not follow the European model, although it would be recommended given the heterogeneity and number of challenges these areas face. The research aims to examine the effects of different rural development policy measures on production structure, economic results and resource utilisation of family farms in areas with natural constraints in Serbia. A linear programming model has been developed for the dominant farm type in the areas with natural constraints in Eastern and Southern Serbia. The model was used to simulate various policy scenarios based on the Common Agricultural Policy: compensatory payments, decoupled payments, agri-environmental payments and greening payments. Results showed that a combination of different policy measures could increase income and preserve traditional agricultural systems and biodiversity. Considering that there is a lack of empirical research on areas with natural constraints in Serbia, research findings provide guidelines for creating rural development policies that take into account the characteristics of the dominant farm type in these areas.
Downloads
Download data is not yet available.
Article Details
Section
Articles
References
Acs, S., Hanley, N., Dallimer, M., Gaston, K., Robertson, P., Wilson, P., & Armsworth, P. (2010). The effect of decoupling on marginal agricultural systems: Implications for farm incomes, land use and upland ecology. Land Use Policy, 27, 550–563.
Bogdanov, N. (2014, August). The development of support for less favored areas and deprivileged regions: challenge of agricultural policy in Serbia. Paper presented at the EAAE Congress: "Agri-Food and Rural Innovations for Healthier Societies". Ljubljana.
Brouwer, F.M., & van Ittersum, M.K. (2010). Environmental and agricultural modelling: integrated approaches for policy impact assessment. Springer Science and Business Media.
Brown M., Jones J. (2013, April). The predicted impacts of the proposed greening measures of the 2014 CAP reform on farming businesses in North Cornwall. Paper presented at "87th Annual Conference of the Agricultural Economics Society". University of Warwick.
Buysse, J. (2007). Farm-level mathematical programming tools for agricultural policy support [Doctoral Dissertation], Faculty of Bioengineering, University of Ghent, Belgium.
Cooper, T., Pezold, T. (eds.), Keenleyside, C., Đorđević-Milošević, S., Hart, K., Ivanov, S., Redman, M., Vidojević, D. (2010). Developing a National Agri-Environment Programme for Serbia. Gland, Switzerland and Belgrade, Serbia: IUCN Programme Office for South-Eastern Europe.
Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources.
Council Regulation (EC) No 1305/2013 of the European Parliament and of the Council of 17 december 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Czekaj, S., Majewski E., & Wąs, A. (2013). The impact of the “greening” of the Common Agricultural Policy on the financial situation of Polish farms. Applied Studies in Agribusiness and Commerce – APSTRACT, 7, 49-55.
Directorate for Agrarian Payments in Serbia (2020, May): Internal data, https://uap.gov.rs
European Comission (2009). New Insights into Mountain Farming in the European Union. Brussels, Belgium.
European Commission (2011). CAP towards 2020 impact assessment. Directorate-General for Agriculture and Rural Development, Brussel, Belgium.
Eurostat (2020, June). Farm Structure Survey, 2007 https://ec.europa.eu/eurostat.
Gelan, A., & Schwarz, G. (2008). The effect of single farm payments on less favored areas agriculture in Scotland: a CGE analysis. Agriculture and Food Science, 17, 4–17.
Giesecke, J., Horrdige, M., & Zawalinska, M. (2010). The regional economic consequences of less favoured area support: A spatial general equilibrium analysis of the Polish LFA program. General Paper No. G-211.
Gocht, A., Ciaian, P., Bielza, M., Terres, J. M., Röder, N., Himics, M., & Salputra, G. (2016). Economic and environmental impacts of CAP greening: CAPRI simulation results. Joint Research Centre, European Commission.
Havadi Nagy, K.H., Peter, I., Oana-Ramona, J.,Friedrich, Z.T., Marius, C., Sebestyén, T.T. (2015). The Sustainable Development of Less-Favoured Rural Areas: A Study of the Romanian and Austrian Experiences. Romanian Review of Regional Studies,11, 19-30.
Hazell, P.B.R., & Norton, R.D. (1986). Mathematical Programming for Economic Analysis in Agriculture. MacMillan Publishing Company, New York.
Henrich, B. (2012). Calculating the ‘greening’ effect. A case study approach to predict the gross margin losses indifferent farm types in Germany due to the reform of the CAP. Discussion Papers. Department für Agrarökonomie und Rurale Entwicklung Universität Göttingen
Hovorka, G. (2004, April). Evaluation of the compensatory allowances scheme under the EU regulation 1257/99 in Austria and in other EU Member States. Paper presented at the 87th EAAE Seminar: "Assessing Rural Development Policies of the CAP". Vienna.
Institute for European Environmental Policy (2006). An evaluation of the less favoured area measure in the 25 Member States of the European Union. Brussels, Belgium.
Janeska Stamenkovska, I., Dimitrievski, D,.Erjavec, E., Žgajnar, J., Martinovska-Stojcheska, A. (2013). Optimization of production on vegetable farm in the Republic of Macedonia. Agroeconomia Croatica, 3, 1-8.
Јaneska Stamenkovska, I. (2015). Мodel na povekekriteriumska optimizacija pri donesuvanje odluki na zemljodelskite stopanstva vo Republika Makednija [Multi-criteria optimisation model for agricultural households decision making in Republic of Macedonia], Doktorska disertacija, Univerzitet Sv. Кiril i Меtodij vo Skopje, Fakultet za zemjodelski nauki i hrana – Skoplje.
Jones, N., Duarte, F., Rodrigo, I., Van Doorn, A. Graaff, J.D. (2016). The role of EU agri-environmental measures preserving extensive grazing in two less-favoured areas in Portugal. Land Use Policy, 54, 177–187.
Khan, M.A., Rehman,T., & Ahmad, S. (2000). Application of multiple criteria decision models for oilseed crops in Pakistan's Punjab. The Pakistan Development Review, 39, 515-532.
Klepacka-Kołodziejska, D. (2010). Does less favoured areas measure support sustainability of European rurality? The Polish experience. Rural areas and development, Rural Development Network Studies, 7, 121-134.
Lososová, J., Svodoboda, J., & Zdenak, R. (2016). Comparison of operational subsidies on less favoured areas in EU countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64, 979-992.
Louhichi, K., Espinosa, M., Ciaian, P., & Gomez y Paloma, S. (2013). Farm-level models for EU policy analysis: Review of recent literature and comparison of most relevant models. In: Langrell, S. (Eds.), Farm level Modelling of CAP: A Methodological Overview (pp. 17-26). Joint Research Center, European Commision., European Commission.
Manos, B., Bournaris, T., & Chatzinikolaou, P. (2011). Impact assessment of CAP policies on social sustainability in rural areas: an application in Northern Greece. Operational Research – An International Journal, 11, 77–92.
Manos, B., Bournaris, T., Papathanasiou, J., & Chatzinikolaou, P. (2009). Evaluation of tobacco cultivation alternatives under EU common policy (CAP). Journal of Policy Modelling, 31, 225-38.
Ministarstvo poljoprivrede, šumarstva i vodoprivrede Crne Gore - MPRR CG [Ministry of Agriculture, Forestry and Water Management of Montenegro] (2020, June). https://mpr.gov.me/ministarstvo
Morgan-Davis, C. (2014). Changing role of hill farming in Scotland. [Doctoral Dissertation]. College of Science and Engineering, University of Edinburgh.
Papić, R. (2021). Politika ruralnog razvoja prema područjima sa prirodnim ograničenjima – efekti na porodična gazdinstva i ruralne sredine u Republici Srbiji [Rural development policy on Areas with natural constraints – effects on family farms and rural areas in the Republic of Serbia], Doktorska disertacija, Univerzitet u Beogradu, Poljoprivredni fakultet, Srbija
Papić, R. (2022). Rural development policy on areas with natural constraints in the Republic of Serbia. Economics of Agriculture, 69, 75-89.
Ministry of agriculture, forestry and water management (2019). Report on the state of agriculture in 2018. Republic of Serbia.
Ruben, R., & Pender, J. (2004). Rural diversity and heterogeneity in less favoured areas: the quest for policy targeting. Food Policy, 29, 303-320.
Shrestha, S., Hennessy, T. & Hynes, S. (2007). The effect of decoupling on farming in Ireland: A regional analysis. Irish Journal of Agricultural and Food Research, 46, 1-13.
Štolbová, M., & Molčanová, J. (2009). Evaluation of support for farms in less-favoured areas in the Czech Republic and Slovakia. Rural Areas and Development, 6, 285-301.
Svetlanská, T., & Turčeková, N. (2016, May). Land use optimization with respect to alternative costs of crop production choices – Case of Slovakia. Paper presented at the International Scientific Days 2016: “The Agri-Food Value Chain: Challenges for natural resources Management and Society“. Nitra.
Tamme, O. (2004). The less-favoured area (LFA) scheme in study Area “Bludenz -Bregenzer Wald”. Juli 2004, ESPON project 2.1.3. Wien, pp 1–19.
Wąs, A., & Malak-Rawlikowska, A. (2008, Novembar). Policy impact on production structure and income risk on Polish dairy farms. Paper presented at the 109th EAAE Seminar: "The CAP after the Fischler reform: national implementations, impact assessment and the agenda for future reforms". Viterbo.
Zawalinska, M., Giesecke, J., & Horrdige, M. (2013). The Consequences of Less Favored Area support: a muti-regional CGE analysis for Poland. Agricultural and food science, 22, 271-287.
Žgajnar, J., Erjavec, E., & Kavčič, S. (2007). Optimization of production activities on individual agricultural holdings in the frame of different direct payments options. Acta agriculturae Slovenica, 90, 45-56.
Žgajnar, J., Erjavec, E., Kavčić, S. (2008). Change in farm production structure within different CAP schemes – an LP modelling. Annals of “Dunarea de Jos“ University – Fascicle I. Economics and Applied Informatics, 31-36.
Znaor, D., & Karoglan-Todorović, S. (2015). Poljoprivreda koja štiti prirodu: zaštita prirode kroz mjere programa ruralnog razvoja RH 2014–2020 [Agriculture that protects nature: nature protection through the measures of the rural development program of the Republic of Croatia 2014–2020]. Ministarstvo zaštite okoliša i prirode Republike Hrvatske i konzorcij u sastavu: Avalon Foundation, Nizozemska, ÖKL, Austrija i Ecologica, Hrvatska.
Bogdanov, N. (2014, August). The development of support for less favored areas and deprivileged regions: challenge of agricultural policy in Serbia. Paper presented at the EAAE Congress: "Agri-Food and Rural Innovations for Healthier Societies". Ljubljana.
Brouwer, F.M., & van Ittersum, M.K. (2010). Environmental and agricultural modelling: integrated approaches for policy impact assessment. Springer Science and Business Media.
Brown M., Jones J. (2013, April). The predicted impacts of the proposed greening measures of the 2014 CAP reform on farming businesses in North Cornwall. Paper presented at "87th Annual Conference of the Agricultural Economics Society". University of Warwick.
Buysse, J. (2007). Farm-level mathematical programming tools for agricultural policy support [Doctoral Dissertation], Faculty of Bioengineering, University of Ghent, Belgium.
Cooper, T., Pezold, T. (eds.), Keenleyside, C., Đorđević-Milošević, S., Hart, K., Ivanov, S., Redman, M., Vidojević, D. (2010). Developing a National Agri-Environment Programme for Serbia. Gland, Switzerland and Belgrade, Serbia: IUCN Programme Office for South-Eastern Europe.
Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources.
Council Regulation (EC) No 1305/2013 of the European Parliament and of the Council of 17 december 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)
Czekaj, S., Majewski E., & Wąs, A. (2013). The impact of the “greening” of the Common Agricultural Policy on the financial situation of Polish farms. Applied Studies in Agribusiness and Commerce – APSTRACT, 7, 49-55.
Directorate for Agrarian Payments in Serbia (2020, May): Internal data, https://uap.gov.rs
European Comission (2009). New Insights into Mountain Farming in the European Union. Brussels, Belgium.
European Commission (2011). CAP towards 2020 impact assessment. Directorate-General for Agriculture and Rural Development, Brussel, Belgium.
Eurostat (2020, June). Farm Structure Survey, 2007 https://ec.europa.eu/eurostat.
Gelan, A., & Schwarz, G. (2008). The effect of single farm payments on less favored areas agriculture in Scotland: a CGE analysis. Agriculture and Food Science, 17, 4–17.
Giesecke, J., Horrdige, M., & Zawalinska, M. (2010). The regional economic consequences of less favoured area support: A spatial general equilibrium analysis of the Polish LFA program. General Paper No. G-211.
Gocht, A., Ciaian, P., Bielza, M., Terres, J. M., Röder, N., Himics, M., & Salputra, G. (2016). Economic and environmental impacts of CAP greening: CAPRI simulation results. Joint Research Centre, European Commission.
Havadi Nagy, K.H., Peter, I., Oana-Ramona, J.,Friedrich, Z.T., Marius, C., Sebestyén, T.T. (2015). The Sustainable Development of Less-Favoured Rural Areas: A Study of the Romanian and Austrian Experiences. Romanian Review of Regional Studies,11, 19-30.
Hazell, P.B.R., & Norton, R.D. (1986). Mathematical Programming for Economic Analysis in Agriculture. MacMillan Publishing Company, New York.
Henrich, B. (2012). Calculating the ‘greening’ effect. A case study approach to predict the gross margin losses indifferent farm types in Germany due to the reform of the CAP. Discussion Papers. Department für Agrarökonomie und Rurale Entwicklung Universität Göttingen
Hovorka, G. (2004, April). Evaluation of the compensatory allowances scheme under the EU regulation 1257/99 in Austria and in other EU Member States. Paper presented at the 87th EAAE Seminar: "Assessing Rural Development Policies of the CAP". Vienna.
Institute for European Environmental Policy (2006). An evaluation of the less favoured area measure in the 25 Member States of the European Union. Brussels, Belgium.
Janeska Stamenkovska, I., Dimitrievski, D,.Erjavec, E., Žgajnar, J., Martinovska-Stojcheska, A. (2013). Optimization of production on vegetable farm in the Republic of Macedonia. Agroeconomia Croatica, 3, 1-8.
Јaneska Stamenkovska, I. (2015). Мodel na povekekriteriumska optimizacija pri donesuvanje odluki na zemljodelskite stopanstva vo Republika Makednija [Multi-criteria optimisation model for agricultural households decision making in Republic of Macedonia], Doktorska disertacija, Univerzitet Sv. Кiril i Меtodij vo Skopje, Fakultet za zemjodelski nauki i hrana – Skoplje.
Jones, N., Duarte, F., Rodrigo, I., Van Doorn, A. Graaff, J.D. (2016). The role of EU agri-environmental measures preserving extensive grazing in two less-favoured areas in Portugal. Land Use Policy, 54, 177–187.
Khan, M.A., Rehman,T., & Ahmad, S. (2000). Application of multiple criteria decision models for oilseed crops in Pakistan's Punjab. The Pakistan Development Review, 39, 515-532.
Klepacka-Kołodziejska, D. (2010). Does less favoured areas measure support sustainability of European rurality? The Polish experience. Rural areas and development, Rural Development Network Studies, 7, 121-134.
Lososová, J., Svodoboda, J., & Zdenak, R. (2016). Comparison of operational subsidies on less favoured areas in EU countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64, 979-992.
Louhichi, K., Espinosa, M., Ciaian, P., & Gomez y Paloma, S. (2013). Farm-level models for EU policy analysis: Review of recent literature and comparison of most relevant models. In: Langrell, S. (Eds.), Farm level Modelling of CAP: A Methodological Overview (pp. 17-26). Joint Research Center, European Commision., European Commission.
Manos, B., Bournaris, T., & Chatzinikolaou, P. (2011). Impact assessment of CAP policies on social sustainability in rural areas: an application in Northern Greece. Operational Research – An International Journal, 11, 77–92.
Manos, B., Bournaris, T., Papathanasiou, J., & Chatzinikolaou, P. (2009). Evaluation of tobacco cultivation alternatives under EU common policy (CAP). Journal of Policy Modelling, 31, 225-38.
Ministarstvo poljoprivrede, šumarstva i vodoprivrede Crne Gore - MPRR CG [Ministry of Agriculture, Forestry and Water Management of Montenegro] (2020, June). https://mpr.gov.me/ministarstvo
Morgan-Davis, C. (2014). Changing role of hill farming in Scotland. [Doctoral Dissertation]. College of Science and Engineering, University of Edinburgh.
Papić, R. (2021). Politika ruralnog razvoja prema područjima sa prirodnim ograničenjima – efekti na porodična gazdinstva i ruralne sredine u Republici Srbiji [Rural development policy on Areas with natural constraints – effects on family farms and rural areas in the Republic of Serbia], Doktorska disertacija, Univerzitet u Beogradu, Poljoprivredni fakultet, Srbija
Papić, R. (2022). Rural development policy on areas with natural constraints in the Republic of Serbia. Economics of Agriculture, 69, 75-89.
Ministry of agriculture, forestry and water management (2019). Report on the state of agriculture in 2018. Republic of Serbia.
Ruben, R., & Pender, J. (2004). Rural diversity and heterogeneity in less favoured areas: the quest for policy targeting. Food Policy, 29, 303-320.
Shrestha, S., Hennessy, T. & Hynes, S. (2007). The effect of decoupling on farming in Ireland: A regional analysis. Irish Journal of Agricultural and Food Research, 46, 1-13.
Štolbová, M., & Molčanová, J. (2009). Evaluation of support for farms in less-favoured areas in the Czech Republic and Slovakia. Rural Areas and Development, 6, 285-301.
Svetlanská, T., & Turčeková, N. (2016, May). Land use optimization with respect to alternative costs of crop production choices – Case of Slovakia. Paper presented at the International Scientific Days 2016: “The Agri-Food Value Chain: Challenges for natural resources Management and Society“. Nitra.
Tamme, O. (2004). The less-favoured area (LFA) scheme in study Area “Bludenz -Bregenzer Wald”. Juli 2004, ESPON project 2.1.3. Wien, pp 1–19.
Wąs, A., & Malak-Rawlikowska, A. (2008, Novembar). Policy impact on production structure and income risk on Polish dairy farms. Paper presented at the 109th EAAE Seminar: "The CAP after the Fischler reform: national implementations, impact assessment and the agenda for future reforms". Viterbo.
Zawalinska, M., Giesecke, J., & Horrdige, M. (2013). The Consequences of Less Favored Area support: a muti-regional CGE analysis for Poland. Agricultural and food science, 22, 271-287.
Žgajnar, J., Erjavec, E., & Kavčič, S. (2007). Optimization of production activities on individual agricultural holdings in the frame of different direct payments options. Acta agriculturae Slovenica, 90, 45-56.
Žgajnar, J., Erjavec, E., Kavčić, S. (2008). Change in farm production structure within different CAP schemes – an LP modelling. Annals of “Dunarea de Jos“ University – Fascicle I. Economics and Applied Informatics, 31-36.
Znaor, D., & Karoglan-Todorović, S. (2015). Poljoprivreda koja štiti prirodu: zaštita prirode kroz mjere programa ruralnog razvoja RH 2014–2020 [Agriculture that protects nature: nature protection through the measures of the rural development program of the Republic of Croatia 2014–2020]. Ministarstvo zaštite okoliša i prirode Republike Hrvatske i konzorcij u sastavu: Avalon Foundation, Nizozemska, ÖKL, Austrija i Ecologica, Hrvatska.