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1 Zagadnienia Ekonomiki Rolnej

1 2015

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Problem kapitalizacji subsydiów w rolnictwie

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Góral J. , Kulawik J.

Zagadnienia Ekonomiki Rolnej

2015

nr 1(342)

3-24

The capitalization of the subsidies is a process of depositing them in the rental rates, prices of farmland and values of farm’s assets. For example, the capitalization 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 capitalization 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 capitalization, its mechanisms, dynamics and conditions. To sum up the foregoing and the results of previous studies, it is clear that the capitalization of subsidies in agriculture is a fact. Its source, nature, intensity and consequences are conditioned in many ways.