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Possible effects on EU land markets of the 2013 CAP reform

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  • Ciaian, Pavel
  • Kancs, d'Artis
  • Swinnen, Johan

Abstract

Decoupled direct payments were introduced in the EU in form of the Single Payment Scheme (SPS) in 2005. The 2013 CAP reform changed both the implementation of the SPS and its budget. This is the first paper that analyzes the possible effects of the 2013 CAP reform on the EU land markets; in particular the capitalization of the SPS in land rental values. Our results suggest that the implementation elements of the 2013 CAP reform will largely determine the impact of the SPS on land markets. In particular, the reference period for entitlement allocation, regionalization, payment differentiation and budgetary changes. Our analysis also implies that a number of relatively minor policy changes could have substantial impacts on land markets.

Suggested Citation

  • Ciaian, Pavel & Kancs, d'Artis & Swinnen, Johan, 2014. "Possible effects on EU land markets of the 2013 CAP reform," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182748, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182748
    DOI: 10.22004/ag.econ.182748
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    More about this item

    Keywords

    Agricultural and Food Policy; Land Economics/Use;

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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