IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v48y2021i1p8-41..html
   My bibliography  Save this article

Regional differences in the capitalisation of first and second pillar payments of the CAP into land rental prices

Author

Listed:
  • Klaus Salhofer
  • Paul Feichtinger

Abstract

Nearly 80 per cent of Common Agricultural Policy (CAP) expenditures are spent on three different measures: first pillar payments (FPPs), agri-environmental payments (AEPs) and less favoured area payments (LFAPs). Based on a dynamic panel model and farm accounting data for Bavaria, we find that, on average, 30 per cent of FPPs, 40–50 per cent of LFAPs, but no relevant share of AEPs are capitalised into land rental prices. The capitalisation ratio varies considerably across regions. Above average capitalisation ratios for FPPs are observed in more favourable areas with high yields, a low grassland share and large farms. The same is true for LFAPs for areas with high yields, large farms and a greater share of part-time farmers.

Suggested Citation

  • Klaus Salhofer & Paul Feichtinger, 2021. "Regional differences in the capitalisation of first and second pillar payments of the CAP into land rental prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(1), pages 8-41.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:1:p:8-41.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbaa028
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Na Xu & Liqin Zhang & Xiyuan Leng, 2022. "Sustainable Food Production from a Labor Supply Perspective: Policies and Implications," Sustainability, MDPI, vol. 14(23), pages 1-19, November.
    2. Olagunju, Kehinde Oluseyi & Angioloni, Simone & Wu, Ziping, 2022. "How has the 2013 decoupled payment reform affected farmland rental values in Northern Ireland?," Land Use Policy, Elsevier, vol. 112(C).
    3. Baldoni, Edoardo & Ciaian, Pavel, 2023. "The capitalization of CAP subsidies into land prices in the EU," Land Use Policy, Elsevier, vol. 134(C).
    4. 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.
    5. Lin, Wensheng & Huang, Jikun, 2021. "Impacts of agricultural incentive policies on land rental prices: New evidence from China," Food Policy, Elsevier, vol. 104(C).
    6. Julia Stauder & Harald Meimberg & Monika Kriechbaum, 2023. "An Exploration of Drivers for Abandonment or Continuation of Summer Pasture Grazing in South Tyrol, Italy," Sustainability, MDPI, vol. 15(9), pages 1-17, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:48:y:2021:i:1:p:8-41.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.