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The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations

Author

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  • Latruffe, Laure
  • Piet, Laurent
  • Dupraz, Pierre
  • Mouël, Chantal Le

Abstract

This paper investigates the determinants of agricultural land price in several regions in France over the period 1994-2011, using individual plot transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. It found a positive but relatively small capitalisation effect of the total subsidies per hectare. The data revealed that agricultural subsidies capitalised, at least to some extent, but the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate-surplus zone.
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Suggested Citation

  • Latruffe, Laure & Piet, Laurent & Dupraz, Pierre & Mouël, Chantal Le, 2013. "The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152373, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatr13:152373
    DOI: 10.22004/ag.econ.152373
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    Cited by:

    1. 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.
    2. 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.
    3. Yali Zhang & Yihan Wang & Yunli Bai, 2019. "Knowing and Doing: The Perception of Subsidy Policy and Farmland Transfer," Sustainability, MDPI, vol. 11(8), pages 1-15, April.

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