Resumen de Unequal harvests: Redistribution and income elasticities of CAP subsidies across Greek farms

Zisis C. Mandanas, Dimitrios P. Petropoulos, Nikolaos Apostolopoulos

• In the present study the redistributive dynamics of Common Agricultural Policy (CAP) subsidies in Greece are examined, identifying differential impacts of public support across farm-size categories. Smaller and medium-sized holdings absorb the majority of CAP transfers, yet larger farms record significantly higher average gross and net incomes. However, the effectiveness of these payments diverges, as gross income is most responsive to subsidies in very large farms, whereas net income responds most strongly in the smallest holdings. Decoupled payments augment gross income in larger agricultural enterprises, whereas direct payments help stabilize the net income of smaller farms. Elasticity estimates suggest that, although CAP payments support income maintenance, they also reinforce structural asymmetries. A dual function of the CAP is identified, as it operates as stabilizing factor of vulnerable farmers while disproportionately benefiting larger, more capitalized holdings.