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Home Browse 2019 - Volume 121 Volume 121-Issue 3

Do coupled subsidies increase milk productivity, land use, herd size and income? Evidence from Kosovo

byBAJRAMI, Egzon,WAILES, Eric J.,DIXON, Bruce L.,MUSLIU, ArbenandDURAND-MORAT, Alvaro
  • Year 2019
  • Volume 121
  • Issue 3
  • Pages 134-143

This study assesses the effectiveness of the Subsidy per Head Scheme (SPHS) in increasing milk productivity, land use, herd size and income in dairy farms across the seven regions of Kosovo. SPHS represents one of the largest coupled subsidy programs in the agricultural sector of Kosovo in terms of farmer participation and budget allocation. We use a Propensity Score Matching approach to assess the impact of this program by comparing a group of participants with a group of non-participants during the 2013–2014 farming seasons. We test the robustness of the impact results using four different matching algorithms. Results reveal SPHS was not effective in increasing land use, gross income and farm size (number of cows), although SPHS had a limited impact on improving milk productivity. In addition, the study highlights the need to reformulate coupled subsidies and develop new, complementary strategies that address farmers’ needs more efficiently.

Tags: coupled subsidyimpact evaluationKosovopropensity score matching
  • https://doi.org/10.7896/j.1913
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  • ISSN (electronic): 2063-0476
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Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

Publisher Headquarters: Zsil utca 3-5, 1093-Budapest, Hungary

Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

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adoption (5) agricultural exports (3) agriculture (12) AKIS (3) CAP (3) Central and Eastern Europe (3) climate change (5) Common Agricultural Policy (3) competitiveness (5) consumer behaviour (3) consumer preferences (4) Covid-19 (4) dairy farms (3) dairy sector (2) Data Envelopment Analysis (3) economic growth (3) efficiency (3) elasticity (3) European Union (7) export (2) FADN (3) family farms (4) farmers (3) farm income (3) Hungary (5) impact evaluation (4) innovation (4) Kosovo (3) LEADER (4) maize (3) off-farm income (4) participation (3) policy (4) price transmission (3) resilience (2) risk management (3) Romania (2) rural areas (4) rural development (13) social capital (3) social innovation (3) Structural Funds (3) sustainability (5) sustainable agriculture (4) technical efficiency (6)
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