Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications

Although the beneficial impact of Common Agricultural Policy (CAP) on stabilization farming income is undisputable, distribution benefits derived from CAP between operators and regions gives rise to some controversy. The objective this paper was estimate regional differences in Poland based partial equilibrium model European Union (EU) agricultural sector with simulated interventions. expectations farmers different were represented as a non-cooperative game define vectors change policy. theory moves applied set groups farmers. Our results demonstrate that both 1st 2nd pillars more profitable advantageous agrarian structure higher potential compared their peers fragmented agriculture. However, considering long-term development objectives Polish agriculture, outcome argues against compensating for these by increasing redistributive payments less favorable regions. To prevent widening ensure social economic rural areas structures where agriculture currently unable compete, it would be critical enhance conditions alternative types activities.