Impact of the EU CAP on the Agricultural Farms with Different Specializations

Abstract

This paper assesses the impacts from implementation of EU CAP on agricultural farms with different production specialization. For this aim we use the model of Policy Analysis Matrix. The analysis is for the four major crops: wheat, grapes, tomatoes and plums in the first three years of the accession of Bulgaria to the EU (2007-2009 years). The choice of these crops is dictated by the fact that they are leading the grain, vegetable, horticultural and viticulture specialization and this will give us an idea how to reflect the EU CAP on farms specialized in their respective fields in the first years of application of the CAP.
The conclusion that can be drawn from applications PAM analysis is that the EU’s CAP has an impact on farms in our country, depending on their manufacturing expertise. It was found that it has a positive impact on grain production and negatively on viticulture, horticulture and vegetable-growing. Providing financial assistance to farms and SAPARD agricultural funds of the Union for the period 2007-2013 has spurred the development of individual industries and make them competitive. Typical examples are large farms specialized in grain production. Meanwhile agricultural holdings with other specialization do not receive equivalent support taking into account the peculiarities of their proceedings.