The Market for Payment Entitlements in Germany

Norbert Roeder and Stefan Kilian

No 36868, 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK from Agricultural Economics Society

Abstract: In 2005, Germany implemented CAP decoupled payments. Direct payments were converted into tradable, production decoupled, single farm payments (SFP) by a hybrid model. From 2010 - 2013, there will be a gradual transition to a regional model. The following paper shows the results of an analysis of the market for payment entitlements in Germany between 2005 and June 2007. Data are derived from the German Central IACS database (ZID). In this period 1.2 of the 17 million payment entitlements changed their owner. A closer look at the figures reveals that despite a large difference in the face value of the entitlements, the entitlements are rarely traded in order to optimize farm budget. In most cases, trade of entitlements is directly linked to farm or land transfer. As a consequence, the overwhelming majority of trade takes place on the local level with very little redistribution of direct payments on a regional level being observed. Differences between the thirteen German trading regions with respect to observed trade patterns are quite small.

Pages: 18
Date: 2008-03-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/36868/files/Roeder_kilian.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aes008:36868

DOI: 10.22004/ag.econ.36868

Access Statistics for this paper

More papers in 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK from Agricultural Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().