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The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices

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  • Paul Feichtinger
  • Klaus Salhofer

Abstract

Based on 7,300 agricultural land sales transactions, we estimate the effect of the 2003 reform of the E.U. Common Agricultural Policy on land prices. As opposed to the main body of the literature on agricultural land values, we do not start from a demand-oriented net present value approach or hedonic pricing method, but derive our reduced form pricing equation from a spatial land sales market model. Our empirical model accounts for spatial dependence and endogeneity of explanatory variables. A reduction of payments by 50 €/ha would decrease land sales prices by 445 €/ha before and by 984 €/ha after the reform.

Suggested Citation

  • Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
  • Handle: RePEc:uwp:landec:v:92:y:2016:i:3:p:411-432
    Note: DOI: 10.3368/le.92.3.411
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    Cited by:

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    2. Richard J Vyn & James Rude, 2020. "The Influence of Supply Management on Farmland Values in Ontario," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 815-834, December.
    3. Demartini, Eugenio & Gaviglio, Anna & Gelati, Marco & Cavicchioli, Daniele, 2016. "The Lords of the Rent," 149th Seminar, October 27-28, 2016, Rennes, France 245705, European Association of Agricultural Economists.
    4. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, Open Access Journal, vol. 9(11), pages 1-23, November.
    5. Friederike Lehn & Enno Bahrs, 2018. "Land-Use Competition or Compatibility between Nature Conservation and Agriculture? The Impact of Protected Areas on German Standard Farmland Values," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-20, April.
    6. von Hobe, Cord-Friedrich & Musshoff, Oliver, 2021. "On the effectiveness of restricted tendering as a form of policy intervention on agricultural land markets," Land Use Policy, Elsevier, vol. 103(C).
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    8. Pavel Ciaian & d'Artis Kancs & Dusan Drabik, 2016. "Land Markets in Europe: Institutions and Market Outcomes," EERI Research Paper Series EERI RP 2016/10, Economics and Econometrics Research Institute (EERI), Brussels.
    9. von Hobe, Cord-Friedrich & Mußhoff, Oliver, 2020. "On the effectiveness of restricted tenders as a form of policy intervention on agricultural land markets," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305592, German Association of Agricultural Economists (GEWISOLA).
    10. Koemle, Dieter & Lakner, Sebastian & Yu, Xiaohua, 2019. "The impact of Natura 2000 designation on agricultural land rents in Germany," Land Use Policy, Elsevier, vol. 87(C).
    11. Lehn, Friederike & Bahrs, Enno, 2018. "Analysis of factors influencing standard farmland values with regard to stronger interventions in the German farmland market," Land Use Policy, Elsevier, vol. 73(C), pages 138-146.
    12. Feichtinger, Paul & Salhofer, Klaus, 2016. "Decoupled Single Farm Payments of the CAP and Land Rental Prices," Discussion Papers DP-65-2016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    13. Paul Feichtinger & Klaus Salhofer, 2016. "Decoupled Single Farm Payments of the CAP and Land Rental Prices," Working Papers 652016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.

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    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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