What is it about?

The creation and maintenance of jobs in agriculture and in rural areas have been a traditional Common Agricultural Policy (CAP) target. We investigate the impact of CAP subsidies on farm employment in Hungary and Slovenia. We find a strong link between the main type of farm employment, different types of CAP subsidies, and farm size suggesting the importance of CAP subsidies for maintaining farm employment and job creation for the young and unemployed, and land use policy.

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Why is it important?

The greater transparency and efficiency in the implementation of CAP subsidies should be in the interest of the policy makers and society (taxpayers) and particularly of farmers regarding the rational use of CAP subsidies to avoid possible failures and public concerns about their eligibility.


The results might explain farmers' political demand for the status quo with only minor CAP subsidy changes, with raising society's awareness on monitoring of effective and efficient use of subsidies.

Professor Imre Ferto
Centre for Economic and Regional Studies, Hungarian Academy of Sciences: Budapest

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This page is a summary of: Do different types of Common Agricultural Policy subsidies promote farm employment?, Land Use Policy, January 2022, Elsevier,
DOI: 10.1016/j.landusepol.2021.105823.
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