Important legal notice
AGRILIFE- Agriculture and life sciences in the economy
SUSTAG - Sustainable Agriculture
Structural Change and Competitiveness of Agriculture in an Enlarged Europe


To provide a prospective analysis of farming systems in selected New Member States (NMS) and Accession Countries (AC), contributing to the understanding of the effects of implementing the CAP in these countries.


This study provides a prospective analysis of agricultural income and viability of farming in selected New Member States and Accession Countries, namely the Czech Republic, Hungary, Latvia, Poland, and Romania.

A specific methodology, based on the Agrarian System Diagnosis, adjusted to the use of accountancy information from the national Farm Accountancy Data Network (FADN) databases, is used to evaluate the economic performance of selected farming systems; a scenario analysis is used to evaluate prospects of agricultural income.

Three hypothetical policy scenarios are developed, simulating the effects of policy alternatives on the NI/WU of the farming systems analysed. The Baseline scenario assumes the full application of the 2003 CAP Reform, and considers the distribution of decoupled direct payments according to foreseen 2013 national ceilings. The Market Scenario simulates a potential evolution of the CAP towards complete liberalisation of agricultural trade, abolition of market support and direct payments. The Society Scenario simulates a capping of direct payments awarded to larger farms and redistribution of released funds towards smaller farms based on broader welfare criteria than on strictly economic ones.


Report Prospects for the agricultural income of European farming systems. Summary results


CAP reform

Agriculture and enlargement


Sergio Gomez y Paloma

Joint Research Centre