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The impact of single farm payments on technicalinefficiency of French crop farms

Author

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  • Kassoum Ayouba

    () (CESAER, AgroSup Dijon, INRA, University Bourgogne Franche-Comté, 21000 Dijon, France)

  • Jean-Philippe Boussemart

    (University of Lille, CNRS, IÉSEG School of Management, UMR 9221-LEM, 59000 Lille, France)

  • Stéphane Vigeant

    (University of Lille, CNRS, IÉSEG School of Management, UMR 9221-LEM, 59000 Lille, France)

Abstract

This paper analyses the effect of single farm payments (SFPs) introduced bythe Luxembourg agreements (2003) of the Common Agricultural Policy, on theperformance of crop farms in Eure-et-Loir, France, over the period 2005–2008. Tech-nical inefficiency scores of these crop farms are first estimated. Then, the estimatedtechnical inefficiency scores are regressed on SFPs received by farmers following astandard two-step procedure. The analysis shows a negative effect of SFPs on thetechnical inefficiency of Eure-et-Loir farms. This implies that subsidies granted tofarms without production restrictions seem to reduce technical inefficiency

Suggested Citation

  • Kassoum Ayouba & Jean-Philippe Boussemart & Stéphane Vigeant, 2017. "The impact of single farm payments on technicalinefficiency of French crop farms," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 98(1-2), pages 1-23.
  • Handle: RePEc:rae:jouraf:v:98:y:2017:i:1-2:p:1-23
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    Keywords

    Single farm payments (SFPs).Technical inefficiency.Data envelopmentanalysis.Double bootstrap;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • 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

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