A Panel Data Analysis of the Determinants of Farmland Price: An Application to the Effects of the 1992 Cap Reform in Belgium
AbstractThis study identifies the effects of the 1992 and subsequent CAP reforms on arable farmland price in Belgium. We first propose a brief literature review of studies identifying the determinants of farmland price. Afterwards, we use a panel data set to estimate a capitalization model of farmland price. We first show that the compensatory payments introduce by the 1992 CAP reform exert a positive effect on the arable farmland price in Belgium. We also identify a structural break in the land price equation after the adoption of the new support instruments as well as a regional break between Wallonia and Flanders.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24577.
Date of creation: 2005
Date of revision:
farmland price; land market; Common Agricultural Policy; capitalization of agricultural support; Agricultural and Food Policy; Land Economics/Use; Q10; Q15; Q18;
Find related papers by JEL classification:
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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