Research of the impact of agricultural policies on the efficiency of farms

Common Agricultural Policy is one of the oldest as well as one of the most expensive policies of the European Union. Common Agricultural Policy accounted for circa 40 % of the European Union’s budget. The aim of the presented paper is the analysis of agricultural policy impact on the agrarian subjects in Slovakia in the period 2007 – 2013. The source of the data is Information Sheets of the Ministry of Agriculture of the Slovak Republic. There is no significant technical inefficiency present when the production function model is applied with the subsidies as the part of the revenues. The subsidies might be considered as the input to motivate subjects and to increase the amount of the sales’ revenues. However, production function model shows negative effect of the subsidies on the sales’ revenues.