Stefania Czekaj

Impact of the CAP "New Greening" on economic results of the Polish farms

After a long debate between political bodies of the EU, the final decision about the shape of the CAP in the next programming period has been made. The initial proposal of the European Commission was very ambitious yet, after the announcement of its final version, there is a common belief that green requirements have been watered down. This paper presents the results of impact analysis based on the most recent proposition of the CAP reform with a special focus on “greening” of direct payments. It evaluates changes in economic results of the Polish farms in the perspective of the year 2019. For the analyses, the authors proposed an original farm typology using data taken from 10,890 farms from the FADN sample in 2011. Farm optimisation model with PMP technique was applied to estimate potential effects of the reform for 218 types of the Polish farms. Farm model results were up-scaled to the country level. Results show that the majority of the Polish farms already complies with the new requirements. Adjustment of remaining farms to the new requirements will have a negligible impact on income generated by the Polish farm sector.