Results of Implementing Less-Favoured Area Subsidies in the 2014–2020 Time Frame: Are the Measures of Environmental Concern Complementary?

Abstract

This article collated and interpreted data on land-based measures and capital investments support in Central Europe. Data collection is essential, due to more EU funds being distributed after 2020. Most evaluations focus on outcomes of agri-environmental measures within the most populous Member States. Unlike previous work, empirical data was hereby assessed on the public support of three measures of environmental concern to farmers (less favored area measure, capital investments, and agri-environmental measures). The study examined whether public goods are complementary. A prevailing focus was on spending for the farms in less favored areas, now renamed Areas of Natural Constraint (ANC). Cluster analysis was employed for seven countries out of 105 rural development programs (RDPs). The Countries include Austria, Czech Republic, Germany, Hungary, Poland, Slovakia, and Slovenia. The average share of the wider ANC measures was 0.31 of the total public funds. Within Central Europe, Hungary sets aside the smallest share (0.17), whereas the Czech Republic and Austria introduced a slightly larger share (0.51). All RDPs identified Capital Investments in physical assets as one of the significant measures. The study found that public goods for biodiversity and landscapes were entailed in the ANC measures, although the extent of measure complementarity across all regions will require further investigation. Finally, unresolved questions about expenditure are highlighted.