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Common Agricultural Policy support, technical efficiency and productivity change in French agriculture

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  • Latruffe, Laure
  • Desjeux, Yann

Abstract

This paper investigates how the various changes in the policy supporting agriculture in the European Union, i.e. the Common Agricultural Policy (CAP), and various types of subsidies (investment, production and rural development) af- fected the technical efficiency and productivity change of farms in France between 1990 and 2006. Three types of farm- ing — field crop, dairy and beef cattle — are considered. Comparison of efficiency across periods indicates a signifi- cant reduction in efficiency in the period following the first CAP reform (1992 MacSharry reform) but an improvement in efficiency change. Econometric results related to the effect of subsidies on efficiency scores (with fixed effect models) and productivity change indices (with ordinary least squares) give ambiguous findings. The effect of a particular type of subsidy was found to be negative or positive depending on the sam- ple ’ s production orientation and on the performance consid- ered. Several methodological recommendations are drawn from the analysis for future research.

Suggested Citation

  • Latruffe, Laure & Desjeux, Yann, . "Common Agricultural Policy support, technical efficiency and productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 97(1).
    • Handle: RePEc:ags:frrfes:277755
    DOI: 10.22004/ag.econ.277755
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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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