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The impact of single farm payments on technical inefficiency of French crop farms

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  • Ayouba, Kassoum
  • Boussemart, Jean-Philippe
  • Vigeant, Stéphane

Abstract

This paper analyses the effect of single farm payments (SFPs) introduced by the Luxembourg agreements (2003) of the Common Agricultural Policy, on the performance of crop farms in Eure-et-Loir, France, over the period 2005–2008. Technical inefficiency scores of these crop farms are first estimated. Then, the estimated technical inefficiency scores are regressed on SFPs received by farmers following a standard two-step procedure. The analysis shows a negative effect of SFPs on the technical inefficiency of Eure-et-Loir farms. This implies that subsidies granted to farms without production restrictions seem to reduce technical inefficiency.

Suggested Citation

  • Ayouba, Kassoum & Boussemart, Jean-Philippe & Vigeant, Stéphane, . "The impact of single farm payments on technical inefficiency of French crop farms," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 98(1/2).
    • Handle: RePEc:ags:frrfes:277882
    DOI: 10.22004/ag.econ.277882
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    Cited by:

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    3. Khafagy, Amr & Vigani, Mauro, 2022. "Technical change and the Common Agricultural Policy," Food Policy, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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