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Static and Dynamic Distributional Effects of Decoupled Payments: Single Farm Payments in the European Union

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  • Pavel Ciaian
  • d'Artis Kancs
  • Johan F.M. Swinnen

Abstract

This paper analyses the distributional effects of decoupled Single Farm Payments (SFP) in the European Union. In a static world the SFP benefit only farmers, irrespective of the implemented SFP model and irrespective of whether entitlements are tradable or not, except when the size of the allocated entitlements is larger than the eligible area and/or if entrants are eligible for the SFP. Then the SFP gets either partially or fully capitalized into land values and landowners benefit. In a dynamic world the effects depend on the nature of structural change, on the tradability of entitlements, and on the implementation model.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 20708.

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Date of creation: 2008
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Handle: RePEc:lic:licosd:20708

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Keywords: Land market; agricultural policy rents; decoupled subsidies; land capitalization;

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Citations

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Cited by:
  1. Ciaian, Pavel & Falkowski, Jan & Kancs, d'Artis & Pokrivcak, Jan, 2011. "Productivity and Credit Constraints Firm-Level Evidence from Propensity Score Matching," Working Papers 117484, Factor Markets, Centre for European Policy Studies.
  2. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2013. "Empirical Evidence of the Distributional Effects of the CAP in New EU Member States," Factor Markets Working Papers 170, Centre for European Policy Studies.
  3. Jan Fałkowski & Pavel Ciaian & d'Artis Kancs, 2009. "Access to Credit, Factor Allocation and Farm Productivity: Evidence From the CEE Transition Economies," Working Papers 2009-12, Faculty of Economic Sciences, University of Warsaw.
  4. Ciaian, Pavel & Kancs, d’Artis & Swinnen, Jo, 2012. "Income Distributional Effects of Decoupled Payments: Single Payment Scheme in the European Union," Factor Markets Working Papers 134, Centre for European Policy Studies.
  5. Ciaian, Pavel & Kancs, d'Artis & Swinnen, Johan F.M., 2012. "European Union Land Markets and the Common Agricultural Policy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126683, International Association of Agricultural Economists.
  6. Pavel Ciaian & d'Artis Kancs, 2009. "The Capitalisation of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States," EERI Research Paper Series EERI_RP_2009_04, Economics and Econometrics Research Institute (EERI), Brussels.
  7. Pavel Ciaian & Tomáš Ratinger, 2009. "Income Distribution Effects of EU Rural Development Policies: The Case of Farm Investment Support," EERI Research Paper Series EERI_RP_2009_01, Economics and Econometrics Research Institute (EERI), Brussels.
  8. Pavel Ciaian & Jan Fałkowski & D’Artis Kancs, 2012. "Productivity and credit constraints: A firm-level propensity score evidence for agricultural farms in central and east European countries," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 62(4), pages 459-487, December.
  9. Mack, Gabriele & Möhring, Anke & Ferjani, Ali & Zimmermann, Albert & Mann, Stefan, 2013. "Transfer of single farm payment entitlements to farm successors: impact on structural change and rental prices in Switzerland," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
  10. Feichtinger, Paul & Salhofer, Klaus, 2013. "The Influence of the Common Agricultural Policy and Heterogeneous Land Quality on Land Rent and Land Allocation," Factor Markets Working Papers 149, Centre for European Policy Studies.
  11. Pavel Ciaian & d'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 CAP Reform on Land Capitalization," EERI Research Paper Series EERI RP 2014/07, Economics and Econometrics Research Institute (EERI), Brussels.
  12. Gocht, Alexander & Britz, Wolfgang & Ciaian, Pavel & Gomez y Paloma, Sergio, 2011. "EU-wide Distributional Effects of EU Direct Payments Harmonization analyzed with CAPRI," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114624, European Association of Agricultural Economists.
  13. Viaggi, Davide & Bartolini, Fabio & Puddu, Marco & Raggi, Meri, 2013. "Farm/Household-level Simulation Results of Testing Policy and Other Scenarios," Factor Markets Working Papers 166, Centre for European Policy Studies.
  14. Kilian, Stefan & Salhofer, Klaus, 2009. "Entkoppelte Prämien, Bodenpreise und Wettbewerbsfähigkeit," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(3).
  15. Puddu,Marco & Bartolini, Fabio & Viaggi,Davide, 2012. "Simulation of Land Use and Investment Behaviour under Different Policy Scenarios: Results of the extended farm/household model," Factor Markets Working Papers 132, Centre for European Policy Studies.

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