Reform of the CAP after 2013 and its impacts on Slovak agriculture

Abstract

The paper deals with the analysis of the proposals of the European Union Common Agricultural Policy reform (the EU CAP) after 2013 and modelling forecast of its impacts on Slovak agriculture. The behaviour of business entities in agriculture is significantly influenced by the current support scheme and the level of support within the EU CAP but also by market conditions. The impacts of the particular scenarios on the changes of production indicate that Slovak agriculture will approach just slowly the 2008 production level. This will be decisively influenced by the price development. Despite of this, it is evident that the most favourable result can be achieved under the Flat Rate Scenario while the absolute abolition of direct payments (Liberal Scenario) will bring very unfavourable economic consequences with impacts on agricultural production in Slovakia.