Abstract
Sustainable development plays an important role in shaping conditions for economic growth, social development and care for the natural environment. The issue was also noticed at the level of the European Union, which is expressed among others by creating sectoral policies, including the Common Agricultural Policy. The aim of the article is to determine the influence of the Common Agricultural Policy on the level of socio-economic sustainability of farms in Poland. The authors formulate a hypothesis that the existing solutions serve the achievement of economic sustainability, determined by the agricultural to non-agricultural income ratio, but they do not provide sustainability of farms in terms of the social element understood as taking income disparities into consideration. In the article, panel regression and the ratio of income from representative FADN farms to average annual gross salary per employee in Poland in the years 2004–2017 were used. It was found that thanks to the support from the Common Agricultural Policy, the average income of farms comes close to the average income of the non-agricultural sector. However, the influence of the subsidies on changes in economic sustainability was uneven in various economic size classes of farms—the strongest farms benefited the most, which means that social sustainability in terms of equal distribution of income was not achieved.
Highlights
IntroductionThe idea of socio-economic sustainability (or sustainable economic and social development) is very broad and depending on the adopted concept, various characteristics describing this state are listed in the literature
The idea of socio-economic sustainability is very broad and depending on the adopted concept, various characteristics describing this state are listed in the literature
The analyses in the article determined that subsidies for production, subsidies for public goods and investment support turned out to be significant for the shaping of agricultural income
Summary
The idea of socio-economic sustainability (or sustainable economic and social development) is very broad and depending on the adopted concept, various characteristics describing this state are listed in the literature. It was pointed out that sustainable development is an idea of development that meets the needs of the present without compromising the ability of future generations to meet their own needs [1]. Several years later in 1992, during the UN Conference on Environment and Development in Rio de Janeiro “Earth Summit”, a broad concept of sustainable development was adopted [2]. It assumed properly structured relationships between economic growth, environmental protection, and the social sphere [3]. A significant role was attributed to activities aimed at increasing social cohesion, including limiting income disparities, providing equal opportunities and counteracting marginalization, access to employment, education, and healthcare
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