Agricultural and Rural Development Policies in the Baltic by Eric Burgeat, Stefan Tangermann

By Eric Burgeat, Stefan Tangermann

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To be included the household’s reference person must work on a large agricultural unit and that job must be their principal occupation (in terms of income or, failing that, of time). It is assumed that this will be the case for most reference persons. At a future stage it will be necessary to clarify what constitutes a “large-scale agricultural unit”, possibly using a size criterion. This issue is probably best handled at national level. This “add-on” provision applies to statistics for agricultural households defined in the “narrow” way.

This is because a large share of support in the OECD area is linked to the level of production12 or the level of input,13 and also because in many cases, support accounts for a significant share of gross receipts. The largest farms, and often the most prosperous ones, are therefore the main beneficiaries. Graph 7 shows that the 25% largest farms receive between 40 and 90% of support. In this sense, support is inequitable. On average, direct payments are more equally distributed than market price support and gross receipts, but the difference is generally small.

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