Do Farm Subsidies Improve Labour Efficiency in Farms in EU Countries?

Purpose: Agricultural support programmes most commonly aim at attaining higher production of raw food materials or supporting processes resulting in agricultural yield. One the important challenges is to increase labour productivity, thanks which working sector may be attractive comparison with non-agricultural sector. In literature, scope economy, there a lack consistent results concerning relation between level subsidies for operational activity and productivity agriculture. The question arises whether not agriculture help achieve intended form an productivity. This reasoning gave rise this study, aimed indicating directions strength association on farms expressed per one employed attained Design/Methodology/Approach: study was carried out EU countries divided into quartile groups defined according Data from Farm Accountancy Network period 2013-2018 were applied, analysis panel regression method (with random effects) used. Findings: It found that together direction impact direct also altered. On lower no significant found. However, quantile Q2 Q3, resulted positive, yet decreasing subsidies. lowest negative observed. Practical Implications: conducted gives reason state have high development, do lead further growth but only maintenance same farm income. Originality/value: assessment under what conditions bring effects allows change order obtain better spending public funds. research long time group all countries.