The impact of single farm payments on technical inefficiency of French crop farms

Kassoum Ayouba, Jean-Philippe Boussemart and Stéphane Vigeant ()
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Stéphane Vigeant: University of Lille, CNRS, IÉSEG School of Management, UMR 9221-LEM

Review of Agricultural, Food and Environmental Studies, 2017, vol. 98, issue 1, No 1, 23 pages

Abstract: Abstract This paper analyses the effect of single farm payments (SFPs) introduced by the Luxembourg agreements (2003) of the Common Agricultural Policy, on the performance of crop farms in Eure-et-Loir, France, over the period 2005–2008. Technical inefficiency scores of these crop farms are first estimated. Then, the estimated technical inefficiency scores are regressed on SFPs received by farmers following a standard two-step procedure. The analysis shows a negative effect of SFPs on the technical inefficiency of Eure-et-Loir farms. This implies that subsidies granted to farms without production restrictions seem to reduce technical inefficiency.

Keywords: Single farm payments (SFPs); Technical inefficiency; Data envelopment analysis; Double bootstrap (search for similar items in EconPapers)
JEL-codes: C14 C16 C34 Q12 Q18 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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Journal Article: The impact of single farm payments on technical inefficiency of French crop farms
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DOI: 10.1007/s41130-017-0049-2

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