Subsidies on investments in the EU member states

Abstract

The article compares the investment subsidies in agriculture within the EU member states throughout the period of 2004 - 2013 based on the FADN database. Low investment level affects the cost and efficiency of agricultural production and thus the overall competitiveness of agricultural production. European programs providing support for the investments for agriculture aim at improving agricultural competitiveness. Development of subsidies on investment, property and Farm Net Income adjusted to economic size of enterprise by correlation analysis is compared in every EU country. Using cluster analysis, the member states were divided into groups according to subsidies on investments, their share in gross investment and the share of gross investments in fixed assets. The relationship between subsidies on investments and gross investment ranges from middle to higher dependency. The amount of subsidies on investments does not significantly affect the amount of current Farm Net Income.