A meta-analysis of the capitalisation of CAP direct payments into land prices

Varacca, Alessandro; Guastella, Gianni; Pareglio, Stefano; Sckokai, Paolo

doi:10.1093/erae/jbab014

Cited by 14 publications

(11 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Allowing for multiple estimates from individual papers, the range of estimates for the capitalisation rate is strikingly large. The Varacca et al (2021) study concludes that the capitalisation rate for coupled payments is around 11 cents per euro of payment. Decoupled payments have a higher capitalisation rate, depending on the implementation model, while capitalisation in rental transactions is higher still, varying between 15 and 49 cents per euro.…”

Section: Direct Paymentsmentioning

confidence: 96%

The contribution of research to agricultural policy in Europe

Matthews

2022

BAE

View full text Add to dashboard Cite

This paper surveys some of the key themes in European agricultural policy research in recent decades. It identifies three main drivers of this research: a gradual broadening of the scope of the discipline in response to changing political priorities and values; an enlarged toolbox of policy instruments that has raised new questions and required the development of new modes of analysis; and the availability of new data sources, increased computing power, as well as the introduction of new methodological advances from economics, statistics and psychology that have opened the way to new and more powerful analytical tools. Particular attention is paid to direct payments and agri-environment-climate measures as examples of new policy instruments that have driven the research agenda. The paper concludes by identifying requirements to ensure that agricultural policy research remains vibrant and relevant in the future.

show abstract

Section: Direct Paymentsmentioning

confidence: 96%

The contribution of research to agricultural policy in Europe

Matthews

2022

BAE

View full text Add to dashboard Cite

show abstract

“…However, Karlsson and Nilsson [14] find that direct payments do not affect the prices of small and medium-sized farms using their spatial-membership model in Sweden. Varacca et al [15] conclude in their meta-analysis that direct payments are capitalized into farmland prices based on the implementation scheme of respective member states in the European Union. Although direct payments are usually correlated with farmland prices, the specific provisions of these policies will affect their capitalization rate into farmland prices.…”

Section: Literature Reviewmentioning

confidence: 99%

“…First, we examine the impact of green payment programs on farmland prices. Prior research has only considered the effect of direct payments on farmland prices [12][13][14][15]. The distinction between direct payments and green payment programs is that the former only pays farmers based on farmland size.…”

Section: Introductionmentioning

confidence: 99%

Green Payment Programs and Farmland Prices—An Empirical Investigation

Lee

et al. 2022

Agriculture

View full text Add to dashboard Cite

Research has examined the impact of green payment programs on agricultural and economic outcomes such as agricultural productivity and farm income. However, it is unclear whether these policies are capitalized into farmland prices. This paper provides some of the first evidence on the causal impact of green payment programs on farmland prices based on evidence from Taiwan. Using administrative farmland transactions data with the ordinary least squares (OLS) method and the semi-parametric smooth coefficient model (SCM), we find that green payment programs increase farmland prices by an average of 3.9 percentage points in townships that implemented the policy. Moreover, the program’s effects on farmland prices are not homogenous, varying by farmland size. The magnitude of this effect is more pronounced on rural farmland prices and across quantiles of the farmland size distribution.

show abstract

“…There are also trends in agriculture in the EU relating to increase in agricultural land prices and capitalisation of support in agricultural land prices [ 9 ], and the increasing emphasis on the environmental context [ 10 , 11 ]. The importance of non-productive assets in farms in EU countries is growing as well [ 12 ].…”

Section: Introductionmentioning

confidence: 99%

The relationship between income and assets in farms and context of sustainable development

Grzelak

2022

PLoS ONE

View full text Add to dashboard Cite

The objective of this paper is to identify the relationship between farm income and assets within the European Union (EU) in the context of economic and environmental sustainable development. The scientific context is connected to economic theory (the recognition of the nature of such a relationship, as well as the determination of whether sustainable development acts as a stimulant or destimulant under these conditions). The Farm Accounting Data Network system was employed in the article. The econometric models were estimated by panel data based on the reported results of the farms operations in EU member states for the period of 2004–2018. Accordingly, the relationship between income and assets is positive and statistically significant, but not very clear in the group of surveyed farms. Moreover, economic sustainability was found to positively influences the relationship between income and assets. In contrast, the relationship between incomes and assets was weakened. The situation is brought about by the intrinsic growth in the value of the land, as well as by the growing importance of non-productive assets. Thus, farmers in EU countries are becoming wealthier in terms of the value of their assets but, this is not reflected directly in their income. The reason is the growing importance of environmental and social functions in the agriculture the European Union. Greater skills in asset management at farm level are, therefore, required to mitigate the situation.

show abstract

A meta-analysis of the capitalisation of CAP direct payments into land prices

Cited by 14 publications

References 37 publications

The contribution of research to agricultural policy in Europe

The contribution of research to agricultural policy in Europe

Green Payment Programs and Farmland Prices—An Empirical Investigation

The relationship between income and assets in farms and context of sustainable development

Contact Info

Product

Resources

About