Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68(1), 255-262 | DOI: 10.11118/actaun202068010255

Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic

Marie Šimpachová Pechrová1, Ondřej Šimpach2
1 Institute of Agricultural Economics and Information, Mánesova 1453/75, 120 00 Prague 2, Czech Republic
2 Faculty of Informatics and Statistics, University of Economics Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic

To ensure the generation renewal in the European Union there are subsidies for setting up of young farmers' businesses and the retirement scheme and top-up direct payments. In the Czech Republic are provided subsides to interest rates with preference of young farmers and intergenerational succession of the farm is tax-free. Together with other incentives, those factors shall facilitate enter of young people to the sector. The aim of the paper is to assess whether the policy measures help the young farmers with setting-up of their business. Based on the primary survey on 510 young Czech farmers the most motivating for enter the sector were tax relief on transfer of the holding and top-up payment for young farmers. The farmers without background considered as sufficiently motivating the top-up payments more often than those with certain background who acknowledged more the top-up subsidies. Possible way how to facilitate the enter to the sector could be to keep the tax relief on farm transfer, to combine the measures for retirement and setting up of young farmers and provide investment subsidies or financial instruments for start-up. Top-up payments, despite motivational according to the farmers, are criticized as inefficient.

Keywords: ageing, agriculture, generation renewal, motivation, Rural Development Programme, subsidies, young farmers
Grants and funding:

The paper was supported by the Ministry of Agriculture of the Czech Republic, institutional support MZE-RO0918, Internal Research Project No. 1113/2019 and from the long-term institutional support of University of Economics Prague, Faculty of Informatics and Statistics.

Received: September 10, 2018; Accepted: January 7, 2020; Published: February 27, 2020  Show citation

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Šimpachová Pechrová, M., & Šimpach, O. (2020). Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 68(1), 255-262. doi: 10.11118/actaun202068010255
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