The impact of payment reallocation in case of direct agricultural subsidies in 2012

Vásáry, Miklós and Domán, Csaba and Kovács, Zoltán and Baranyai, Zsolt: The impact of payment reallocation in case of direct agricultural subsidies in 2012. Review on agriculture and rural development, (3) 1. pp. 287-293. (2014)

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Abstract

In the grant year of 2012, the reallocation of payment in the frames of modulation was a new element in the national agricultural subsidy system. The procedure means that when the total amount of first-pillar direct subsidies are above 5000 EUR which is, 10% payment reduction, when it is above 300 000 EUR, an additional 4% payment reduction should be applied. The implementation in Hungary – according to the principles of the European Union - included the development of a system, which enabled to decrease substantially the actual volume of grant reallocation owing to modulation. In the course of this, the national supplementary titles which were not actually announced and the “unused” items of some titles are also included in the calculation. The present paper introduces and analyses the impacts of reduction in case of enterprises concerned are quantified on the basis of the databases belonging to the Research Institute of Agricultural Economics.

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