What is it about?
his study investigates the impact of Common Agricultural Policy (CAP) subsidies on job retention and creation in Hungarian wine farms from 2013 to 2019. The analysis, based on a Farm Accountancy Data Network, reveals an initial drop in farm employment, primarily in paid labor, followed by stability. Results show that employment in the previous year significantly influences labor on wine farms. CAP subsidies, especially direct payments to farmers and farm size, correlate positively with paid labor, while rented land share has a negative impact. The findings suggest a trade-off: while subsidies support paid labor, there are implications for the efficiency and innovation of wine farms.
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Why is it important?
The study doesn't solely focus on the specific nation under examination but highlights the importance of comparing various countries and their responses to Common Agricultural Policy (CAP) subsidies. Additionally, the suggested future research directions introduce a novel perspective by proposing an exploration of demographic factors and evaluating the efficiency of CAP subsidies.
Perspectives
The study emphasizes the need for cross-country analyses and suggests future research directions, including demographic considerations and the efficiency of CAP subsidies.
Professor Imre Ferto
Centre for Economic and Regional Studies, Hungarian Academy of Sciences: Budapest
Read the Original
This page is a summary of: Will common agricultural policy support save farm employment in the wine sector?, Journal of Wine Research, October 2023, Taylor & Francis,
DOI: 10.1080/09571264.2023.2276272.
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