Agric. Econ. - Czech, 2008, 54(4):166-175 | DOI: 10.17221/293-AGRICECON

Eligibility criteria for less-favoured areas payments in the EU countries and the position of the Czech Republic

M. Štolbová

Research Institute of Agricultural Economics, Prague, Czech Republic

The delimitation of less-favoured areas (LFA) on the territorial and the farm level in the EU member states varies in many ways. The Commission emphasizes the unification of criteria on the territorial level. But the EU countries use very different criteria for the eligibility area definition and for the eligibility on farm level. This makes the comparison very difficult. The CR belongs to the countries with a lower level of differentiation of payments rates. The eligibility area is restricted to the grassland in the CR and degresivity of payments is not applied. In particular, collective farms as the owners' association play an important social role in the country of the Czech Republic and some other countries in the Central and Eastern Europe. It would be necessary to find such differentiation of payment system that would reflect these specific conditions. The holdings with different size and different form of farming as well as the effect of other subsidies to holdings should be taken into account. The support potential within the axis III of the Rural Development Program would be necessary strengthen to elimination of the adverse impact due to further lay-off of the employees in agriculture

Keywords: less-favoured areas, LFA, eligibility criteria, eligible area, LFA payments, rural employment, Rural Development Program

Published: April 30, 2008  Show citation