Evaluation of the effects of the implementation of the ‘land consolidation’ measure
- Evaluation
- Jobs, Growth and Equality in Rural Areas
- Agricultural Production
- Evaluation
- Economic impacts
The report examines the effects of the operation 'Support for investments related to the development, modernisation and adaptation of agriculture and forestry'.
- Poland
- Programming period: 2014-2022
- Environmental impacts
This evaluation, covering the 2014-2020 Rural Development Programme, assesses the socioeconomic effects of land consolidation for farmers and the broader area, focusing on the instrument designed to support agricultural land consolidation. The scope of the evaluation falls within CAP Objective 1 - viable food production.
The main objective of the evaluation is to assess the effects of the operation titled 'Support for Investments Related to the Development, Modernisation, and Adaptation of Agriculture and Forestry (Land Consolidation)' under Measure (M4), which addresses investments in fixed assets.
The evaluation addresses several research questions. First, it seeks to identify and assess the interest of beneficiaries in land consolidation and the support provided post-completion. Second, it examines the regional distribution of applicants and beneficiaries. Third, it identifies the conditions for support for consolidation projects and analyses these conditions from the perspectives of objectivity, measurability and validity. Fourth, it aims to identify obstacles and barriers encountered in the absorption of financial support. Lastly, the evaluation investigates how and to what extent the projects implemented will enable the achievement of the output indicators.
This evaluation employs a mixed-methods approach that combines desk research with a before-and-after comparison of key indicators. The desk research includes an analysis of relevant documents and unit data pertaining to integration projects involving farmers. The before-and-after comparisons assess changes in the parameters that define the distribution of holdings, the rural area and the economic benefits achieved through the scale-up process in a group of agricultural holdings.
The qualitative data sources for this evaluation include documents such as acts, regulations from the ministry of agriculture, reports from the Paying Agency and other relevant materials. Individual-level data for consolidation projects is obtained from the Paying Agency. Quantitative data is sourced from annual reports of the Paying Agency and the Polish Farm Accountancy Data Network (FADN).
The primary indicators used for the evaluation include the following:
- Distribution of the holding: the number of registered parcels of the holding, their average area, and the average distance of the parcels from the holding's headquarters.
- Rural space: the number of land parcels within the consolidation facility, the length of roads and drainage ditches built or rehabilitated, and the occurrence of areas of land set aside for community purposes.
- Farmers’ income: the income achieved by farmers during the consolidation process.
The implementation of operation M4.3, related to land consolidation, was carried out reasonably and accurately. During the analysed period, a total of 184 agreements for financial support of land consolidation operations were signed, amounting to Polish Zlotych (PLN) 1 804.6 million, which represented 92% of the allocated funds for this operation.
The regional structure of the support value, as indicated by signed agreements, was consistent with the percentage distribution of funds allocated for consolidation under the 2014-2020 RDP across individual voivodeships.
The analyses indicate that sub-Measure M4.3 contributes to Specific Objective 2A, as the result of the consolidation efforts leads to positive changes in the production landscape of integrated agricultural holdings and an improvement in the economic outcomes. Specifically, the income from family agricultural holdings following consolidation increased by 38.9% in the year of completion compared to the period prior to consolidation, and this figure rose by 48.9% in the following year.
The investments made in consolidation are expected to recoup their costs within a period ranging from 2-7 years, with an annual rate of return on the costs of consolidation varying between 5.3% and 55.2%. Consolidation not only enhances the efficiency of individual farms but also serves as a tool for maintaining or developing the spatial structure of rural areas.
The evaluation outlines several recommendations for improving the land consolidation process:
- Disseminate information among farmers about the positive effects of land consolidation.
- Enable farmers who have participated in the consolidation procedure to access the services of agricultural advisory centres at no cost.
- Monitor changes in farms that have undergone consolidation to assess the long-term impacts.
- Adapt the period of implementation of the consolidation procedure to align with the specific nature of the projects.
- Increase points awarded for maintaining or restoring landscape values during the evaluation of consolidation projects.
These recommendations aim to enhance the effectiveness and relevance of land consolidation efforts in Poland, ultimately contributing to the achievement of CAP Objective 1.
Author(s)
Bożena Karwat-Woźniak, Bogdan Buks, Monika Wysocka (Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej – Państwowy Instytut Badawczy)