Abstract
The present study aims to determine and evaluate the negative consequences of the implementation of the direct payments financial support mechanism under the Common Agricultural Policy on the rural sustainability of Lithuania. Interviews of experts and a combination of the analytic hierarchy process with three different measurement scales and the analytic hierarchy process with triangular fuzzy numbers were employed in order to evaluate and rank the negative effects of the direct payments mechanism of the Common Agricultural Policy. It was revealed that high land prices, decreasing diversification of cultivated crops, land degradation, and financial indebtedness of farmers can be attributed to direct payments and these consequences have a significant negative impact on the rural sustainability of Lithuania. The necessity of using a combination of different evaluation scales and techniques was confirmed.
Highlights
The Common Agricultural Policy (CAP) consumes the biggest part of the European Commission (EU) budget
It was revealed that high land prices, decreasing diversification of cultivated crops, land degradation, and financial indebtedness of farmers can be attributed to direct payments and these consequences have a significant negative impact on the rural sustainability of Lithuania
The aim of this research paper is to determine the factors that contribute to the results of the implementation of the CAP direct payments (DP) measures and that have a negative impact on the sustainability of rural regions of Lithuania, and if possible, to rank them according to the negative impact they induce
Summary
The Common Agricultural Policy (CAP) consumes the biggest part of the European Commission (EU) budget. There are documented insights about the impact of CAP, and in particular of direct payments (DP), these are mostly focused on the economic viability of rural regions in older Member States [4], which may lead to new Member States being neglected and even increase the divergence between old and new EU Member States [5]. This was contradicted by Pierangeli et al [6], who documented the positive impact of direct payments on rural sustainability, especially on its social dimension, in all EU Member States.
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