IDEAS home Printed from https://ideas.repec.org/a/ags/aieabj/312979.html
   My bibliography  Save this article

The capitalisation of decoupled payments in farmland rents among EU regions

Author

Listed:
  • Guastella, Gianni
  • Moro, Daniele
  • Sckokai, Paolo
  • Veneziani, Mario

Abstract

We study the capitalisation of subsidies in the European Union (EU) regions in the years 2006-2008, the first years after the introduction of the Common Agri-cultural Policy (CAP) 2003 reform that decoupled subsidies from production and attached them to land. For this purpose, we use regional aggregated data and esti-mate the capitalisation rate upon the entire sample and, in a second stage, splitting the sample according to the implementation regime applied by the different EU Member States (MSs), following the three options introduced by the CAP regulations (histori-cal, regional and hybrid model). We find that between 28 and 52 cents per Euro of additional subsidy capitalise into land prices in MSs that adopted the hybrid and the regional model, respectively. We find as well that subsidies do not capitalise in farm-land prices in MSs that adopted the historical model.

Suggested Citation

  • Guastella, Gianni & Moro, Daniele & Sckokai, Paolo & Veneziani, Mario, 2021. "The capitalisation of decoupled payments in farmland rents among EU regions," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 10(1), March.
    • Handle: RePEc:ags:aieabj:312979
    DOI: 10.22004/ag.econ.312979
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/312979/files/Guastella_et_al_BAE_1_2021.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.312979?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laura Onofri & Samuele Trestini & Fateh Mamine & Jason Loughrey, 2023. "Understanding agricultural land leasing in Ireland: a transaction cost approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-20, December.
    2. Onofri, Laura & Trestini, Samuele & Mamine, Fateh & Loughrey, Jason, 2022. "Understanding the Agricultural Land Leasing Market in Ireland: A Transaction Cost Approach," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321211, Agricultural Economics Society - AES.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aieabj:312979. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aieaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.