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Decoupling of agricultural support payments: the impact on land market participation decisions

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  • Stephen O'Neill
  • Kevin Hanrahan

Abstract

This paper analyses the impact of the recent decision by the European Union to ‘decouple’ agricultural support payments from agricultural production on Irish farmers' land market decisions. The land market participation decisions of Irish farmers are modelled using a dynamic probit model, while the extent of participation decisions is modelled using a dynamic tobit model. Decoupling does not appear to have significantly altered farmers' land market decisions. One likely explanation for this is the cross-compliance obligation for farmers to maintain land in a state fit for agricultural production in order to receive their full payments. , Oxford University Press.

Suggested Citation

  • Stephen O'Neill & Kevin Hanrahan, 2012. "Decoupling of agricultural support payments: the impact on land market participation decisions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(4), pages 639-659, September.
    • Handle: RePEc:oup:erevae:v:39:y:2012:i:4:p:639-659
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    File URL: http://hdl.handle.net/10.1093/erae/jbr064
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    Cited by:

    1. Marianne Lefebvre & Meri Raggi & Sergio Gomez Y Paloma & Davide Viaggi, 2014. "An analysis of the intention-realisation discrepancy in EU farmers’ land investment decisions," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(1), pages 51-75.
    2. Edward Knapp & Jason Loughrey, 2017. "The single farm payment and income risk in Irish farms 2005–2013," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-15, December.
    3. Silva, Andres & Etilé, Fabrice & Jamet, Gaelle, 2013. "Consequences of the Five-a-Day Campaign: Evidence from French Panel Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150426, Agricultural and Applied Economics Association.
    4. Cathal O'Donoghue & Thia Hennessy, 2014. "Chapter 03: The Agri-Food Sector," Chapters from Rural Economic Development in Ireland, in: Rural Economic Development in Ireland, edition 1, chapter 3, Rural Economy and Development Programme,Teagasc.
    5. Marten Graubner, 2018. "Lost in space? The effect of direct payments on land rental prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 143-171.
    6. O'Donoghue, Cathal & Lopez, Jeremey & O’Neill, Stephen & Ryan, Mary, 2015. "AHedonic Price Model of Self-Assessed Agricultural Land Values," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212639, European Association of Agricultural Economists.
    7. Loughrey, Jason & Hennessy, Thia & Hanrahan, Kevin & Donnellan, Trevor & Raimondi, Valentina & Olper, Alessandro, 2013. "Determinants of Farm Labour Use: A Comparison between Ireland and Italy," Working papers 157119, Factor Markets, Centre for European Policy Studies.
    8. Laura Onofri & Samuele Trestini & Fateh Mamine & Jason Loughrey, 2023. "Understanding agricultural land leasing in Ireland: a transaction cost approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-20, December.
    9. Micha, E. & Tsakiridis, A. & Ragkos, A., 2018. "Assessing the importance of soil testing in fertilizer use intensity: an econometric analysis of phosphorus fertilizer allocation in dairy farm systems," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277103, International Association of Agricultural Economists.
    10. Vergamini, Daniele & Olivieri, Matteo & Andreoli, Maria & Bartolini, Fabio, 2024. "Simulating policy mixes to reduce soil erosion and land abandonment in marginal areas: A case study from the Liguria Region (Italy)," Land Use Policy, Elsevier, vol. 143(C).
    11. Alper Demirdogen & Emine Olhan & Mehmet Hasdemir, 2022. "Heterogeneous impact of agricultural support policies: evidence from Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 12203-12225, October.
    12. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
    13. Geoghegan, Cathal & Kinsella, Anne & O’Donoghue, Cathal, 2015. "Policy Drivers of Land Mobility in Irish Agriculture," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212658, European Association of Agricultural Economists.
    14. Kehinde Oluseyi Olagunju & Myles Patton & Siyi Feng, 2020. "Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach," Sustainability, MDPI, vol. 12(8), pages 1-17, April.

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