Yield and Profitability of Crop Production in Mountain Less Favoured Areas

Abstract

Agricultural production is a crucial part of policy issue in preventing depopulation of mountainous areas across Europe. However, soil and climate conditions are limiting yields and profitability of crop production in these regions. The European Union (EU) subsidizes agriculture in mountains by special payments (Less Favoured Area (LFA) subsidy) when areas match law-specified natural handicaps. This study aims to assess whether LFA subsidy in Poland is sufficient to cover losses caused by lower yields of crops cultivated in a mountainous region of Poland (Low Beskid Mountains in Carpathians) compared to lowland regions (non-LFA areas). The results indicated that LFA subsidy was adequate for crops (facultative wheat, winter wheat, field bean and spring barley) grown in the years 2015–2018.