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At least for my country, NYT is correct that a large portion of the subsidies goes to few companies but that's not the whole story. Quite a bit of those compani
by pakitan 7y ago
At least for my country, NYT is correct that a large portion of the subsidies goes to few companies but that's not the whole story. Quite a bit of those companies are renting the land from regular people - land ownership is very fragmented here. The companies amass vast areas of rented land and, yes, the subsidies benefit them but what I've noticed that as a result of competition, the rents increase to a point where most, if not all of the subsidy, goes to the land owner, rather than the company that farms the land.
So, it's not as simple as the article makes it seem but even with that in mind, it's far from a perfect system, as it doesn't do much to increase the competitiveness/productivity/sustainability of the EU agriculture sector. It's just a transfer of tax money to land owners, be they oligarchs or regular people.
- buboard 7y agoafaik the subsidies would go to the landowner, not the company who's renting it, no?
- pakitan 7y agoRenting the land essentially means you temporarily own it, along with all the benefits you may get, including subsidies. Subsidies definitely don't go directly to landowner. Only indirectly via the rent payments.