IMPACT OF SUBSIDIES IN AGRICULTURAL INCOME AND CROP PRODUCTION: THE CASE OF GREECE

Abstract

Subsidies are an important element in supporting agricultural income and expanding production. This element is typical for the case of Greece in terms of crop production, which is fragmented, with the majority of farmers owning small rural areas. The purpose of this paper is to study the relationship between the amount of agricultural income and the value of agricultural production and the level of subsidies on products. The research data refer to the period 1993 to 2020 for Greece. All data were drawn from the Eurostat database and are annual. The results of the study showed a significant reduction in the level of subsidies, especially after 2004, which, however, is not associated with a corresponding reduction in agricultural output in the long run. On the contrary, the reduction of subsidies is related to a reduction of agricultural income.