DEVELOPMENT OF DIRECT PAYMENT MEASURES IN THE MACEDONIAN PROCESS OF HARMONIZATION WITH CAP
Date Issued
2019
Author(s)
Janeska Stamenkovska, Ivana
Martinovska Stojcheska, Aleksandra
Abstract
Agriculture, as a vital sector for socio-economic development in Macedonia, gains more
importance for the policy makers during the process of harmonization with the Common
Agricultural Policy (CAP) of the European Union. Since the start of this process, the national
agricultural policy is under continuous reform; thus, the scope, the form and the type of the
budgetary transfers to agriculture have been under constant change in the country. The aim of
this paper is to describe and evaluate the development of the Macedonian agricultural policy,
with a focus on the development of the direct payment measures. The analysis is based on the
annual programs for financial support of agriculture (direct payment scheme dataset) and on the
completed budgetary transfers classified by the Agricultural Policy Measures Classification
scheme (APMC database). More systematic and structural changes for adjusting national
agricultural policy towards CAP are established with the Law on Agriculture and Rural
Development adopted in 2010; therefore, the analysis covers the period from 2010 to 2017. The
analysis confirmed that direct producer support measures are the dominant instrument in the
Macedonian agricultural policy, distributed mainly in a form of coupled payments (per output,
cultivated area or head of livestock). The main recommendations derived from the findings are:
to enlarge the share of decoupled measures in the direct support scheme; and in time, to
gradually direct the policy toward rural development measures.
importance for the policy makers during the process of harmonization with the Common
Agricultural Policy (CAP) of the European Union. Since the start of this process, the national
agricultural policy is under continuous reform; thus, the scope, the form and the type of the
budgetary transfers to agriculture have been under constant change in the country. The aim of
this paper is to describe and evaluate the development of the Macedonian agricultural policy,
with a focus on the development of the direct payment measures. The analysis is based on the
annual programs for financial support of agriculture (direct payment scheme dataset) and on the
completed budgetary transfers classified by the Agricultural Policy Measures Classification
scheme (APMC database). More systematic and structural changes for adjusting national
agricultural policy towards CAP are established with the Law on Agriculture and Rural
Development adopted in 2010; therefore, the analysis covers the period from 2010 to 2017. The
analysis confirmed that direct producer support measures are the dominant instrument in the
Macedonian agricultural policy, distributed mainly in a form of coupled payments (per output,
cultivated area or head of livestock). The main recommendations derived from the findings are:
to enlarge the share of decoupled measures in the direct support scheme; and in time, to
gradually direct the policy toward rural development measures.
Subjects
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