1. Direct payments – impact on income and effectiveness of agricultural holdings in Poland

Direct payments are an instrument of support for the income of agricultural holdings, commonly used in all Member States of the European Union. Between May 2004 and December 2012, the value of payments for farmers in Poland exceeded PLN 90 million, which accounted approximately for 54% of support provided under CAP. The aim of this article is to discuss the most important reasons for introducing the direct payments scheme in the EU, to analyse the direct payments scheme in Poland and to present, on the basis of research based on FADN data and on own survey data, the impact of direct payments on the income and effectiveness of agricultural holdings in Poland.