Comparison of Agricultural subsidies in the Czech Republic and in the selected states of the European Union

Abstract

The Common Agricultural Policy has been implemented in order to guarantee the appropriate life quality for farmers and to preserve the European heritage. Costs of its realization amounted to 40% of the EU budget. The EU has not established the same conditions for all member states. The aim of the paper is to assess the influence of agricultural subsidies and the structure of production on the incomes of agricultural holdings and their comparison with the largest producers in the EU with similar production structure. The shift-share analysis is used. Different amount of subsidies according to the type of farming together with increasing subsidy rate may influence the type of farming. Therefore, it may cause a paradox that the structure of subsidies according to the type of farming will stimulate products that are currently suppressed. The difference in subsidies in comparison with the largest producers with a similar structure of agricultural production is significant for the Czech Republic and it is possible to compare it to the increase of the SAPS by 75%.