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Abstract

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.

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