Farmland rental rate and marginal return to land: A french FADN perspective
AbstractThe paper examines the relationship between the cash rent and the shadow value of farmland to understand the French farmland market. The empirical analysis is restricted to French main grain crops, namely wheat, oil crops and other grain crops. The sample is an unbalanced panel of 35,089 observations, that includes 6,089 crop farms which are observed about 5 years each, during the period 1990 -2007. The shadow values of all quasi-fixed assets have been derived from a restricted variable profit function. The profit function was successively estimated and tested by three estimation strategies: pooled OLS, one-way fixed effect and random panel model. However, concluding remarks are based on the results of the fixed effect model because of its statistical significance. The result indicates that the shadow prices of land and labour were persistently diverging from there observed price. The average shadow value of farmland was estimated about 550â‚¬/ha/year which is five times higher than the average rental price of 112â‚¬/ha/year over the studied period. Implication for the behaviours of French farmland market has been drawn from this analysis.
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Bibliographic InfoPaper provided by Institut National de la Recherche Agronomique, France in its series Working Papers with number 221264.
Length: 21 p.
Date of creation: 2012
Date of revision:
Publication status: Published in
Shadow values; cash rent; farmland price; net present value; restricted profit; fixed effect; prix de la terre; terre agricolemÃ©thode empirique; culture cÃ©rÃ©alierefrance;
Other versions of this item:
- Dupraz, Pierre & Temesgen, Chalachew, 2012. "Farmland Rental Rate and Marginal Return to Land: A French FADN Perspective," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK, Agricultural Economics Society 134954, Agricultural Economics Society.
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
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