Technical efficiency in different specialised EU farms and role of CAP subsidies

This research provides a rigorous evaluation of technical efficiency within the European Union’s agricultural sector, assessing the impact of Common Agricultural Policy subsidies between 2004 and 2023. Utilising harmonised microeconomic data from the Farm Accountancy Data Network, the assessment of technical efficiency has used a non-parametric input-oriented approach, such as Data Envelopment Analysis, to benchmark across the EU–27 the role of different subsidies allocated by the CAP in eight distinct farmingtypologies. Results reveal a moderate technical efficiency of 0.4855, which rises to 0.5112 when CAP support is integrated. Direct payments under pillar I are identified as the primary drivers of this shift, whereas Rural Development Programme payments and environmental payments exhibit marginal impacts on the technical frontier.