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WHAT IS THE FUTURE OF CORPORATE FARMS UNDER CONDITIONS OF COMMON AGRICULTURAL POLICY ?

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Latruffe L., Davidova S., Blaas G.
Sociológia (Sociology)
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2008
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vol. 40
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issue 2
127-140
EN
The newly emergent landowners in the 1990s left their land in the corporate farms due to the low level of farm profitability and the high risk in the general economic environment. The accession to the EU and the introduction of the Common Agricultural Policy (CAP) Single Area Payment (SAP) could induce incentives to landowners to withdraw their land if they are not satisfied with the level of rent. The analysis in this paper, based on survey data, has indicated that, although the SAP might induce more landowners to ask for a rent increase, it is unlikely that they would massively withdraw their land from the corporate farms. However, financially constrained farms might quickly loose their capacity to compete for land in the conditions of an increased land demand.
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