THE ROLE OF AGRICULTURAL SUBSIDIES IN SHAPING YOUNG FARMERS' DECISION-MAKING IN THE GREEK AGRICULTURAL SECTOR

Abstract

The Greek agricultural sector is grappling with a dynamic environment characterized by evolving policies, global market forces, and reduced protectionism. To effectively navigate these challenges, a paradigm shift toward a new development philosophy is imperative. This philosophy seeks to address structural issues, enhance technical and economic aspects, and strategically orient production towards crops that capitalize on the Mediterranean region's comparative advantages. This study explores Greek farmers' attitudes, expectations, and satisfaction levels in this evolving landscape, with a particular emphasis on assessing the impact of the Young Farmers 2021 program and demographic factors. Utilizing a questionnaire of 18 closed-ended questions, data were collected from 144 respondents, comprising 76 participants in the Young Farmers 2021 program and 68 non-participants. The survey encompassed inquiries into demographic and social variables and delved into the assessment of attitudes, expectations, and satisfaction levels. The collected data underwent rigorous analysis involving Non-Linear Principal Component Analysis and categorical regression. The examination yielded two discernible factor axes: „Challenges and Diminished Satisfaction“ and „Favorable Perceptions and Optimistic Prospects.“ Remarkably, Young Farmers 2021 program participants exhibited fewer hurdles, higher contentment, and a more sanguine outlook compared to non-participants. These disparities were statistically significant, underscoring the program's substantial influence. Furthermore, demographic attributes emerged as pivotal determinants. A higher level of educational attainment was correlated with diminished difficulties, augmented satisfaction, and more favorable perceptions and expectations. This underscores the pivotal role of educational initiatives in equipping farmers with the necessary acumen and skills to effectively surmount obstacles and cultivate optimism within the agricultural sector. In summary, this study underscores the noteworthy impact of the Young Farmers 2021 program on Greek farmers' attitudes, expectations, and contentment levels. Program involvement was associated with reduced challenges, heightened satisfaction, and a more positive outlook regarding the future of agriculture. Additionally, educational attainment surfaced as a pivotal factor in molding farmers' experiences and outlooks. These insights offer valuable guidance to policymakers and agricultural organizations, facilitating the development of targeted interventions and policies aimed at encouraging program participation and delivering educational resources. Keywords: agricultural subsidies, decision-making, financial considerations, policymaking. JEL: Q12; Q14; O2