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Direct Payments and Land Rents: Evidence from New Member States

  • Van Herck, Kristine
  • Vranken, Liesbet

This paper analyses the impact of increasing direct payments on land rents in six new EU member states in which agricultural subsidies largely increased as a result of their EU accession. We find that up to 25 eurocents per additional euro of direct payments is capitalized in land rents. In addition, the results show that capitalization of direct payments is higher in more credit constrained markets, while capitalization of direct payments is lower in countries where more land is used by corporate farms.

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File URL: http://purl.umn.edu/126777
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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126777.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126777
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  8. Pavel Ciaian & Johan Swinnen, 2005. "Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," LICOS Discussion Papers 15805, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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  11. Ciaian, Pavel & Kancs, d'Artis & Swinnen, Johan F.M., 2012. "European Union Land Markets and the Common Agricultural Policy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126683, International Association of Agricultural Economists.
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  20. Ciaian, Pavel & Swinnen, Johan F.M., 2009. "AJAE appendix for ‘Credit Market Imperfections and the Distribution of Policy Rents’," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 91(4), November.
  21. Chantal Le Mouel, 2004. "Impacts of alternative agricultural income support schemes on multiple policy goals," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 125-148, June.
  22. Laure Latruffe & Sophia Davidova & Elodie Douarin & Matthew Gorton, 2008. "Farm expansion in Lithuania after accession to the EU: The role of CAP payments in alleviating potential credit constraints," Working Papers SMART - LERECO 08-06, INRA UMR SMART.
  23. Chau, Nancy H. & de Gorter, Harry, 2001. "Disentandling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions and Output," Working Papers 127663, Cornell University, Department of Applied Economics and Management.
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  25. Joe Dewbre & Jesús Antón & Wyatt Thompton, 2001. "The Transfer Efficiency and Trade Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1204-1214.
  26. Barry K. Goodwin & François Ortalo-Magné, 1992. "The Capitalization of Wheat Subsidies into Agricultural Land Values," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(1), pages 37-54, 03.
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