Static and Dynamic Distributional Effects of Decoupled Payments: Single Farm Payments in the European Union

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper analyses the distributional effects of decoupled Single Farm Payments (SFP) in the European Union. In a static world the SFP benefit only farmers, irrespective of the implemented SFP model and irrespective of whether entitlements are tradable or not, except when the size of the allocated entitlements is larger than the eligible area and/or if entrants are eligible for the SFP. Then the SFP gets either partially or fully capitalized into land values and landowners benefit. In a dynamic world the effects depend on the nature of structural change, on the tradability of entitlements, and on the implementation model.

Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union

“…To illustrate the SPS capitalization, we use the model of Ciaian and Swinnen (2006) and Ciaian, Kancs, and Swinnen (2008). Agricultural goods are produced by two types of farms, 4 which permit the SPS variation across farms to be accounted for.…”

“…According to Courleux et al (2008), Kilian and Salhofer (2008), and Ciaian, Kancs, and Swinnen (2008), the capitalization rate of the SPS largely depends on the ratio of the eligible area to the total number of entitlements. In the case of deficit entitlements relative to the eligible area the SPS benefits farms, it is not capitalized into land values.…”

“…Theoretical studies have shown that the SPS capitalization level depends significantly on the SPS implementation model (i.e., on the variability of entitlement value between farms): the larger the SPS variation between farms (i.e., historical vs. hybrid SPS model), the lower the capitalization rate of the SPS may be (Courleux et al 2008;Kilian and Salhofer 2008;Ciaian, Kancs, and Swinnen 2008).…”

The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union

“…The conceptual framework used in this paper is based on Ciaian, Kancs, and Swinnen (2008), Courleux et al (2008), and Kilian and Salhofer (2008).…”

The Significance of Farm Size in the Evaluation of Labour Productivity in Agriculture

“…The main instrument of CAP is subsidies. Subsidy payments may induce structural changes in the economy, such as productivity growth and exit/entry of farms (Ciaian et al, 2008).Various studies have shown that these CAP subsidies impact on the farm sector productivity. Some theoretical studies suggest that subsidies may have a positive or negative impact on farm production (Rizov et al, 2013) and productivity (Ackrill, 2008).…”