Development and Finance from issue 2010/1

Csaba Csáki - Attila Jámbor

The Diversity of Effects of EU Membership on Agriculture after. 5 Years of EU Accession

- Abstract -

JEL Q-18

Five years have passed since the accession of Central and Eastern European countries have started. In general, the accession had a positive impact upon the sector. As for production performance, agricultural output per hectare in nominal value increased significantly after EU accession in NMS, while output in real value rose only in Baltic countries and Poland. EU accession had a positive impact on productivity as all countries could increase their yields of cereals except for Cyprus. There is a diversity besides the overall positive picture. There are significant differences among the countries. This diversity is due to: (a) Initial conditions; (b) Pre-accession policies; (d) Post-accession policies and the way of implementing CAP; (e) Macro policy and institutional environment. EU membership has led to a significant increase of subsidies received by the farmers and through led the increase of farmers’ income. The support, however, is not evenly distributed. Small farmers are handicapped in many ways. Though they are also eligible for direct payments, due to the small farm size and administrative procedures, most of them receive marginal amounts or even not part of the system.


Csaba Csáki, member of the Hungarian Academy of Sciences, professor of economics (Corvinus University of Budapest)
Attila Jámbor, assistant professor (Corvinus University of Budapest)

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