Effect of new support regimes on incomes of sheep farmers in the Czech Republic

Abstract

Sheep numbers in the Czech Republic (CR) fell from almost 430,000 in 1990, to 84,000 in 2000 (80% reduction). From 2001, the numbers of sheep in the CR started to increase mainly due to the introduction of ewe premia in less favoured areas (LFAs). According to the official statistics, the number of sheep in the CR was almost 116,000 in 2004, when the CR joined the EU and the new support system was implemented. The aim of this study was to compare the amount of subsidies available for sheep holders under the previous and the new support systems. Simulations of incomes per hectare of grasslands used by sheep farmers in mountains, other LFAs and lowlands, were used for comparison between former and new support regimes. Different stocking densities were considered in the simulations. Under the new support regime relatively more money was paid on land and less directly as ewe premium in the majority of cases considered. In mountains and other LFAs with ewe density in range of 2.7–4.2 ewe/ha, the decrease of ewe payments and lack of pasture payments when stocking density exceeded 1.0 LU/ha were not compensated by the increase of area payments; the total amount of subsidies was lower under new support regime than before. However In lowland areas, the total income was higher under the new system and with different ewe stocking rates.