Importance of Direct Payments as an Income Stabilizing Factor on the Example of Selected Farm Types

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Abstract
In the paper the risk of low Farm Incomes in the selected farm types for different direct payments rates for the year 2013 was assessed. The analysis was performed with the use of Monte Carlo simulation method. Policy scenarios were differentiated mainly by the amount of direct payments (two modulation levels and a complete removal of payments). The simulation’s results show that direct payments, apart of constituting a significant part of farm incomes, have a strong impact on the risk of low income reduction. In the “no payments” scenario variability of incomes and risk of financial losses were much higher than in the base 2004 scenario for all analyzed farm types.

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Majewski, E., & Wąs, A. (2009). Importance of Direct Payments as an Income Stabilizing Factor on the Example of Selected Farm Types. The Scientific Journal European Policies, Finance and Marketing, (2(51), 235–248. Retrieved from https://pefim.sggw.edu.pl/article/view/1595
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