RESEARCH PAPER
PROBLEM OF CAPITALISATION OF SUBSIDIES IN AGRICULTURE
 
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Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej - PIB
Acceptance date: 2015-03-27
Publication date: 2015-03-27
 
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2015;342(1):3–23
 
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ABSTRACT
The capitalisation of the subsidy is a process of depositing them in the rental rates, prices of farmland and values of farm’s assets. For example, the capitalisation of direct payments is the part of rent increase due to the introduction of these payments. Generally, it is evaluated as a negative impact, which may be in conflict with the improvement of competitiveness of farms. The capitalisation of support is a major source of inefficiency of direct transfers to agriculture, particularly those designed to improve the income situation of farmers. Empirical studies differ as to the level of capitalisation, its mechanisms, dynamics and conditions. To sum up the foregoing and the results of previous studies, it is clear that the capitalisation of subsidies in agriculture is a fact. Its source, nature, intensity and consequences are conditioned in many ways.
eISSN:2392-3458
ISSN:0044-1600