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The capitalization of fixed per hectare payment into land rental prices: a spatial econometric analysis of regions in EU

Gianni Guastella (), Daniele Moro, Paolo Sckokai () and Mario Veneziani ()

No 182755, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: Following the decoupling of agricultural support from productions, the likelihood that payments get capitalised into farmland rent or sale prices has increased. In this study, the issue of capitalisation is examined for the case of regions in the EU and the three year (2006- 2008) time span following the introduction of the reform is considered in an attempt to disentangle the effect of the decoupling. Evidence put forward in this study confirms the results of previous literature at the micro-level, suggesting that an additional 1% granted to farmers translates into an increase of 0.22% in farmland rents.

Keywords: Agricultural and Food Policy; Land Economics/Use (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2014-08
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Working Paper: The Capitalisation of Fixed per hectare Payment into Land Rental Prices: a Spatial Econometric Analysis of Regions in EU (2014) Downloads
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