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Author(s): Mária Urbánová

Title: The impact of slovak entry into the EU on the selected indicators of wheat production in production areas

Source: International Scientific Days 2016. The Agri-Food Value Chain: Challenges for Natural Resources Management and Society

Document Type: Scientific paper

ISBN: 978-80-552-1503-7


Publisher: Slovak University of Agriculture in Nitra

PY, pages: 2016, 83-91

Published on-line: 2016-06-24

Language: eng

Abstract: Agriculture is one of the most important sectors of the national economy of the Slovak Republic, in particular, for its long tradition and at the same time for a long-term great political influence of farmers. Therefore, each year flows into the agricultural sector in the EU countries huge amounts of money. Analysed period of 1999-2009 has been divided into two equally long period of time, in the middle of which the Slovak Republic entered the EU and the agrarian policy has changed from purely national to the EU common agricultural policy (Cap). Important reform of the CAP in 2003 was the Fischler reform, by which the single payments decoupled from production and began to provide per hectare of agricultural land. In this paper, we explore how our entry into the EU has been translated into the economy of the selected commodity (wheat) and how the support affected the rate of profitability and the economic income result during this period. For the assessment of the production of wheat, we used indicators such as the yield per hectare, the total and the unit costs, prices, total support... Two indicators have been chosen of the cost-profitability: profitability without support and profitability with the support and the hypothesis was set, by which we explore the development of these indicators per production areas that we divide on less-favoured and favoured. By the hypothesis we verify whether selected indicators confirm the natural expectation that in the better production areas will be achieved their more favourable values. Thanks to the subsidies the economic income results in I. and also in the II. period got from the negative values only to a positive outcome.

Keywords: wheat, production, profitability, support, favored area

JEL Classification: Q02, Q14

Rights: Open Access :: Creative Commons Attribution 4.0 Licence
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