The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations
AbstractWe investigate the determinants of agricultural land price in several regions in France over the period 1994-2011 using individual plots transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. We found a positive but relatively small capitalisation effect of the total subsidies per hectare. We found evidence that agricultural subsidies capitalised at least to some extent. However, the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate surplus zone.
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Bibliographic InfoPaper provided by International Agricultural Trade Research Consortium in its series Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain with number 152372.
Date of creation: Jun 2013
Date of revision:
Farm land price; agricultural subsidies; capitalisation; regulations; nitrate surplus area; France; Agricultural and Food Policy; Farm Management; International Development; Land Economics/Use;
Other versions of this item:
- Latruffe, Laure & Piet, Laurent & Dupraz, Pierre & Mouël, Chantal Le, 2013. "The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152373, International Agricultural Trade Research Consortium.
- NEP-AGR-2013-08-16 (Agricultural Economics)
- NEP-ALL-2013-08-16 (All new papers)
- NEP-EFF-2013-08-16 (Efficiency & Productivity)
- NEP-ENV-2013-08-16 (Environmental Economics)
- NEP-EUR-2013-08-16 (Microeconomic European Issues)
- NEP-SPO-2013-08-16 (Sports & Economics)
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