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Common Agricultural Policy support, technical efficiencyand productivity change in French agriculture

Author

Listed:
  • Laure Latruffe

    (SMART, INRA, 35000 Rennes, France)

  • Yann Desjeux

    (SMART, INRA, 35000 Rennes, France)

Abstract

This paper investigates how the various changes inthe policy supporting agriculture in the European Union, i.e.the Common Agricultural Policy (CAP), and various types ofsubsidies (investment, production and rural development) af-fected the technical efficiency and productivity change offarms 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 firstCAP reform (1992 MacSharry reform) but an improvement inefficiency change. Econometric results related to the effect ofsubsidies on efficiency scores (with fixed effect models) andproductivity change indices (with ordinary least squares) giveambiguous findings. The effect of a particular type of subsidywas found to be negative or positive depending on the sam-ple’s production orientation and on the performance consid-ered. Several methodological recommendations are drawnfrom the analysis for future research.

Suggested Citation

  • Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiencyand productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(1), pages 15-28.
    • Handle: RePEc:rae:jouraf:v:97:y:2016:i:1:p:15-28
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    Keywords

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    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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