Assessment of support for farms in the Czech less favoured areas with special regards to cattle breeding

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Assessment of support for farms in the Czech less favoured areas with special regards to cattle breeding

The article presents an impact analysis of the current agricultural policy on the economy of farms in the Czech less favoured areas (LFAs) and on environment and employment in these areas. A multi-criteria impact assessment shows that under the Czech conditions for supports in the LFAs the economic situation of larger extensive farms, measured by the farm net value added per one annual working unit, is very good even in comparison with farms in the regions with the best natural conditions and out of the LFAs. On the other hand, these farms - with an extensive cattle breeding as usually - operate with very low labour inputs and they realise inadequate rents. A decrease or elimination of the rents is possible by changes in conditions for LFA supports, for example by a degresivity of rates and/or by a capping of the supports, or by the distribution of the LFA payments on the whole area of eligible agricultural land.

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