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Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations

Laure Latruffe (), Laurent Piet (), Pierre Dupraz () and Chantal Le Mouël ()

No 163, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: This paper investigates the determinants of agricultural land price in several regions in France over the period 1994-2011, using individual plot transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. It found a positive but relatively small capitalisation effect of the total subsidies per hectare. The data revealed that agricultural subsidies capitalised, at least to some extent, but the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate-surplus zone.

Pages: 23 pages
Date: 2013-06
New Economics Papers: this item is included in nep-agr, nep-env and nep-eur
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Related works:
Working Paper: The influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations (2014) Downloads
Working Paper: Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations (2013) Downloads
Working Paper: The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations (2013) Downloads
Working Paper: The influence of agricultural support on sale prices of French farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations (2013) Downloads
Working Paper: The influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations (2013) Downloads
Working Paper: Influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations (2013) Downloads
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