Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 16 ISSUE 2
Written by Aurelia Ioana BRÎNARU, Ion DONA

The European Community support agriculture in the pre- and post-accession was represented by the funds allocated to our country in the two pillars of the CAP. Pillar 1 – who was defined by the direct payments to farmers under EAGF and Pillar 2 – made of SAPARD Funds and EAFRD RDP 2007-2013. The following analysis is based on upon the income inequality decomposition methodology that allows, on one side, to assess the degree of concentration of income categories of farms and, on the other side, to assess the effect of the change on the income sources that constitute the total farm income. By taking into account the Gini coefficient and decomposing the income inequality by using a series of criteria such as: the standard value, the main production type obtained etc. we have reached a series of interesting conclusions that may well prove useful to both academia and decision makers. Summarizing the results below, we can see that the support through Pillar II leads to disparities but its influence is very low. Grants awarded by Pillar I are of the utmost importance to the formation of income and therefore they influence more directly the inequalities between farms. Under these circumstances we believe that in order to improve the distribution of income between farms is necessary to increase the subsidies, especially those granted trough complementary national payments that allow the alleviation of general disparities from the prices of the agricultural production between different agricultural sectors and the support of land consolidation in order to achieve a more equitable distribution of the direct payments at the farm levels.

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