Utilisation of the direct EU payments in Slovak agriculture after the 2003 Common Agricultural Policy reform

The paper analyses and compares the EU direct payments in the conditions of the Slovak Republic during the monitored period 2004-2006. The 2003 reform of the Common Agricultural Policy (hereafter CAP) introduces a considerable simplification of the EU producers' support and a general improvement of the market orientation of agriculture. The Slovak Republic has temporarily adopted the system of the Single Area Payment Scheme (SAPS) which is used in the old member states. The Slovak Republic can use this system until the end of the year 2010. The amount of the direct payments in 2004 was 53.1% of the EU average. The prediction for 2007 was 70% of the EU average, provided that the state co-finances 30%.