Template-Type: ReDIF-Article 1.0 Author-Name: Z. Bednaříková Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Author-Name: T. Doucha Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Title: The impacts of agricultural policy scenarios on development of remote rural areas - the case study of the Bruntál and Ostrava districts Abstract: The paper presents the results of simulations for the Bruntál district as a remote rural area and Ostrava as an adjacent urban centre, based on the Computable General Equilibrium model. The model assesses spatial impacts of various agricultural policy and other economic conditions on the regional development of the study areas. The model utilizes a regional Social Accounting Matrix with economic inter-linkages between the rural-urban localities in the study areas. Four agricultural policy scenarios are assessed. All scenarios have negative impacts on the economy of the Bruntál district. Nevertheless, the scenario based on the switch of funds from the Pillar 1 to the Pillar 2 of the Common Agricultural Policy and on the degressive modulation of direct payments shows to be the most significant for the agricultural sector and the overall economy of the district. Keywords: Key words: remote rural area, rural-urban links, models, simulation, agriculture, spatial analysis, regional economy Journal: Agricultural Economics Pages: 161-168 Volume: 55 Issue: 4 Year: 2009 DOI: 10.17221/14/2009-AGRICECON File-URL: http://agricecon.agriculturejournals.cz/doi/10.17221/14/2009-AGRICECON.html File-Format: text/html X-File-Ref: http://agriculturejournals.cz/RePEc/caa/references/age-200904-0001.txt Handle: RePEc:caa:jnlage:v:55:y:2009:i:4:id:14-2009-AGRICECON Template-Type: ReDIF-Article 1.0 Author-Name: J. Špička Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Author-Name: J. Boudný Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Author-Name: B. Janotová Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Title: The role of subsidies in managing the operating risk of agricultural enterprises Abstract: The paper examines the relationship between the farmers' operating risk and current subsidies. Focused at the commodity level, the analysis is based on a sample survey of costs and yields of two crops (winter wheat and rapeseed) and two livestock commodities (cow milk and fattening cattle) carried out in 2005-2007 in the Czech Republic. The risk analysis relates to the growing conditions, crop yields and the livestock productivity. The future role of the subsidies as the risk management tool in the farming business, as well as the position of this instrument against the other risk management instruments is analysed. The break even analysis and the Monte Carlo simulation are used as analytical tools. The results indicate that the current subsidies have an impact on the stability of the farmers' income. Partially or fully decoupled payments serve as a "financial pillow" increasing the level of the farmers' income and extending the farmers' decision-making possibilities. Furthermore, the current subsidies reduce the variability of the farmers' income. The current subsidies are a suitable complement to other commonly used risk management tools primarily designed to reduce the farmers' and farm income variability. Keywords: risk management, agricultural policy, direct payments, income stability, Monte Carlo simulation Journal: Agricultural Economics Pages: 169-180 Volume: 55 Issue: 4 Year: 2009 DOI: 10.17221/17/2009-AGRICECON File-URL: http://agricecon.agriculturejournals.cz/doi/10.17221/17/2009-AGRICECON.html File-Format: text/html X-File-Ref: http://agriculturejournals.cz/RePEc/caa/references/age-200904-0002.txt Handle: RePEc:caa:jnlage:v:55:y:2009:i:4:id:17-2009-AGRICECON Template-Type: ReDIF-Article 1.0 Author-Name: I. Foltýn Author-Name: P. Kopeček Author-Name: I. Zedníčková Author-Name: V. Vávra Title: Profitability development of key Czech agricultural commodities in the period 2002-2006 Abstract: The paper examines development of Czech agriculture through profitability of the 10 chosen most important commodities (wheat, barley, rapeseed, sugar beet, potatoes, dairy cows - milk, cattle fattening, suckler cows, pigs fattening, poultry - fattening broilers) in the time horizon 2002-2006. The aim of the paper is to give an objective information about the influence of agrarian policy on the development of agricultural commodities, especially with reference to the comparison of changes in the pre-accession (period I = 2002-2003) and in the after-accession of the CR to the EU (period II = 2004-2006). This deals with the economic position of Czech producers related to the most considerable commodities of Czech agriculture through 2 indicators, profitability without supports (R-S) and profitability with supports (R+S). There was proved that profitability R+S in the period I was positive for most plant commodities while it was negative for most animal commodities. In connection with the membership of the CR in the EU, agricultural supports significantly increased for nearly all commodities as the consequence of applying the Common Agricultural Policy (CAP) on Czech agriculture. Therefore, there were monitored in the period II important positive changes of the indicator R+S for most commodities. For the average of the Czech Republic, there were obtained the following values of R+S in the period I, resp. period II: wheat 2.6%, resp. 24.9%, barley 27.7%, resp. 39.8%, rapeseed -18.0%, resp. 23.4%, sugar beet 9.1%, resp. 41.4%, potatoes 10.5%, resp. 2.5% (the only one case of decrease), milk 2.1%, resp. 8.5%, fattening cattle -14.6%, resp. -3.6%, suckler cows -8.8%, resp. 19.7%, fattening pigs -5.5%, resp. -1.2%, fattening broilers -2.9%, resp. 0.1%. Keywords: common agricultural policy, agricultural commodities, economics, costs, producer prices, profitability, supports Journal: Agricultural Economics Pages: 181-199 Volume: 55 Issue: 4 Year: 2009 DOI: 10.17221/19/2009-AGRICECON File-URL: http://agricecon.agriculturejournals.cz/doi/10.17221/19/2009-AGRICECON.html File-Format: text/html X-File-Ref: http://agriculturejournals.cz/RePEc/caa/references/age-200904-0003.txt Handle: RePEc:caa:jnlage:v:55:y:2009:i:4:id:19-2009-AGRICECON Template-Type: ReDIF-Article 1.0 Author-Name: T. Medonos Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Author-Name: L. Jelínek Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Author-Name: J. Humpál Author-Workplace-Name: Institute of Agricultural Economics and Information, Prague, Czech Republic Title: The national and regional impacts of direct payments modulation in the Czech Republic Abstract: This paper addresses (ex ante) the issue of the potential impact of the modulation of direct payments on a sector and regional scale in the Czech Republic. The ultimate version of the compulsory modulation measure adopted under the Health Check of the Common Agricultural Policy (CAP) assumes the reduction of direct payments if the total individual claim exceeds 5 thousand € or 300 thousand € level. The Czech agricultural sector will be impacted by this measure substantially, given the large scale farming enterprises. In 2013, the total farmers' direct payments will be cut by more than 10% (€ 91 million). Moreover, there are regional differences in farm structures (the average farm size and the extent of collectivization) which will bring about various effects of policies in the heterogeneous regions. The analysis further shows that the regions that are least affected are at the same time more environmental sensitive and are mostly situated in the mountainous or sub-mountainous parts of the country or more urban areas than the average. Hence the effect of the modulation, from a purely environmental perspective, may not contradict the objectives of other environmental policies. That is to say the regions that need support the most will be reduced the least. However, the picture is less obvious in the regional economies where more rural regions (potentially more vulnerable with socio-economic problems) tend to be more affected. Keywords: modulation, Health Check, agricultural structures, regions Journal: Agricultural Economics Pages: 200-210 Volume: 55 Issue: 4 Year: 2009 DOI: 10.17221/22/2009-AGRICECON File-URL: http://agricecon.agriculturejournals.cz/doi/10.17221/22/2009-AGRICECON.html File-Format: text/html X-File-Ref: http://agriculturejournals.cz/RePEc/caa/references/age-200904-0004.txt Handle: RePEc:caa:jnlage:v:55:y:2009:i:4:id:22-2009-AGRICECON