Single Payments of the CAP: Where Do the Rents Go?
Based on a simple graphical model we analyze the effects of the introduction of the single payment scheme (SPS) in the EU in 2003 on land prices and the distribution of rents. In particular, we are interested in if the single payments are capitalized into agricultural land values. All three different ways to implement the SPS are discussed: the historical model, the regional model and the hybrid model. We show that the outcome crucially depends on the proportion of agricultural area to entitlements and which model is in place.
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|Date of creation:||2007|
|Date of revision:||2008|
|Publication status:||Published in Agricultural Economics Review, Vol. 9, No. 2, 96-106(revised version)|
|Contact details of provider:|| Postal: |
Phone: +49(0)8161 71-3406
Fax: +49(0)8161 71-3408
Web page: http://www.wzw.tum.de/ap/
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