The impact of direct payments on the production area - model view
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The paper proved, on theoretical grounds, that direct support scheme induces changes in the volume and structure of goods production in relation to production generated by market operations, thus having a reallocation function. Using the constructed model, the paper graphically presents the impact of applying individual instruments co-creating direct support scheme (area payments, production support and historical payments) on the level of land involvement in agricultural activity and agricultural production volume. This analysis was supplemented with a description of the impact of individual forms of aid on the structure of agricultural production.