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

Pavel Ciaian, d'Artis Kancs and Johan Swinnen

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: This 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.

Keywords: Land market; agricultural policy rents; decoupled subsidies; land capitalization (search for similar items in EconPapers)
JEL-codes: D23 D30 H21 Q12 Q18 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:20708

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