Technical catching-up and decoupled payments in a selection of French farms

Jean-Philippe Boussemart, Henri-Bertrand Lefer, Hervé Leleu and Raluca Parvulescu
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Henri-Bertrand Lefer: TVES - Territoires, Villes, Environnement & Société - ULR 4477 - ULCO - Université du Littoral Côte d'Opale - Université de Lille, ULCO - Université du Littoral Côte d'Opale

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Abstract: This article investigates the technological catching-up process related to the type of payments (coupled or decoupled) granted to a selection of farms in the French department of Meuse between 1992 and 2012. Using a robust nonparametric efficiency frontier, we first derive a distribution of technical efficiency estimates. Second, through a series of cross-sectional data samples, we regress these estimates on other exogenous, farm-specific variables, such as the subsidies granted and the financial situation. Our results show that technical catching-up occurred for the farms studied. Furthermore, the presence of decoupled payments during the final period slowed down this process. Finally, farms' mid-/long-term debts also had a negative impact on their technical catching-up.

Date: 2019-04
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Published in European Review of Agricultural Economics, 2019, 46 (2), pp.215-235. ⟨10.1093/erae/jby023⟩

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Journal Article: Technical catching-up and decoupled payments in a selection of French farms (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01823831

DOI: 10.1093/erae/jby023

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