Potential impact of Single Farm Payments on French landowners’ decisions to withdraw land from production

Douadia Bougherara and Laure Latruffe

Working Papers from HAL

Abstract: The 2003 CAP reform introduces Single Farm Payments (SFPs) which are not fully linked to production but conditional on compliance with European directives related to environmental, food safety and animal welfare and maintaining the land in good environmental and agricultural conditions (GAEC). This paper focuses on the effects of the reform on land allocation in France. Since it is now possible to receive SFPs for land outside production but maintained in GAEC, we conducted an intentions survey in 2006 to investigate whether the CAP reform provides incentives to French landowners (operators and non-operators) to withdraw some land from production and put it into GAEC, and to identify the determinants behind the decisions. Despite the likely difference in conversion and cross-compliance costs, operators and nonoperators were shown to be equally interested in GAEC. The key variables in landowners' decisions to convert land into GAEC appear to be both monetary and non-monetary.

Keywords: cross compliance; single farm payment; intention; farmer (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://hal.science/hal-01939949v1
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