Evaluation of the Effect of Subsidies on the Production Capability of Land in Selected Regions of the Czech Republic
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A decline in the production capability of land affects the creation of farmers’ revenues, the effective utilization
of agricultural land, its qualitative and quantitative degradation, as well as the competitiveness of Czech
agriculture. The results of the IAEI Prague research show that the annual economic loss due to a decline
in the quality of land in the Czech Republic within the analyzed period of the years
2009-2012 is approximately CZK 385 mil. (MoA, 2012a). The aim of the article
is to evaluate the potential connections between the change in the quality of land
and selected subsidies that should primarily be affecting the effective utilization of agricultural land
and the continual sustainability of its production capability. In the research, the methods of correlation and
comparison were used. The relationship between the amount of paid subsidies (SAPS+TNA, AEM, LFA) and
after changing the production ability of soils (difference GARE) was not confirmed. A statistically significant
relationship was found only in the subsidies NATURE 2000.