Profitability of some certain sensitive sectors - examinations considering the specialties of agricultural policy after 2015

Abstract

The Common Agricultural Policy (CAP) entering into force in 2015 includes several new components. In the
case of direct payments, member states have the opportunity to choose from more voluntary supports,
increasing the member states’ freedom of choice and providing flexibility. Taking into account the interest of
farmers and the particularities of farming, besides the mandatory components, such as the „greening” and the
payment for young farmers, there are more optional components at farmers’ disposal. One such is coupled
support. The current payment system also contains such a support, but with limited application and budget.
Regarding the next programming period, the current share of 3.5 percent of coupled support is going to
increase significantly. Coupled support granted to certain sectors can make up 13 percent of the national
ceiling, and member states are allowed to use another 2 percent to foster the production of protein crops.
Coupled support can be used in certain sectors and for certain products. In order to use the budget effectively,
it is necessary to determine the exact amount of support, considering profitability of the sectors. This paper
attempts to sum up the efficiency and profitability of some relevant sectors.