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Technical catching-up and decoupled payments in a selection of French farms

Author

Listed:
  • Jean-Philippe Boussemart
  • Henri-Bertrand Lefer
  • Hervé Leleu
  • Raluca Parvulescu

Abstract

This article investigates the technological catching-up process related to the type of payments (coupled or decoupled) granted to a selection of farms in the French department of Meuse between 1992 and 2012. Using a robust nonparametric efficiency frontier, we first derive a distribution of technical efficiency estimates. Second, through a series of cross-sectional data samples, we regress these estimates on other exogenous, farm-specific variables, such as the subsidies granted and the financial situation. Our results show that technical catching-up occurred for the farms studied. Furthermore, the presence of decoupled payments during the final period slowed down this process. Finally, farms’ mid-/long-term debts also had a negative impact on their technical catching-up.

Suggested Citation

  • Jean-Philippe Boussemart & Henri-Bertrand Lefer & Hervé Leleu & Raluca Parvulescu, 2019. "Technical catching-up and decoupled payments in a selection of French farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 46(2), pages 215-235.
  • Handle: RePEc:oup:erevae:v:46:y:2019:i:2:p:215-235.
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    File URL: http://hdl.handle.net/10.1093/erae/jby023
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