Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020

Abstract

The study aimed to examine the changes in income inequalities in Polish farms and the impact of introducing the threshold of direct payments for farms (EUR 60 000) to form these inequalities. The research was based on data from the Farm Accountancy Data Network (FADN) for the years: 2006, 2013 and 2018. In each year, the sample included at least 10 000 observations that represented over 700 000 farms. The results were verified using statistical tests relating to the comparisons of averages and distributions of farm income for two samples and the Gini coefficient. The study noted deepening income inequalities in Polish farms, as evidenced by the increasing value of the Gini coefficient in the subsequent years and the growing share of payments in the formation of these inequalities. Neither for the sample analysed nor the field of observation of farms will introduce the threshold for direct payments per farm of at least EUR 60 000 (including labour costs) change the polarisation of income.