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The influence of various agricultural subsidies on sale prices of French farmland

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  • Latruffe, Laure
  • Piet, Laurent
  • Dupraz, Pierre
  • Le Mouel, Chantal

Abstract

We investigate the determinants of agricultural land price in several regions in France during 1994-2011 using individual plots transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. We found a positive but relatively small capitalisation effect of the total subsidies per hectare. The magnitude of capitalisation depends on the region, the type of subsidy, and the location of the plot in a nitrate surplus zone or not. Only land set-aside premiums significantly capitalise into land price, while single farm payments have a significant positive capitalisation impact only for plots located in a nitrate surplus zone.

Suggested Citation

  • Latruffe, Laure & Piet, Laurent & Dupraz, Pierre & Le Mouel, Chantal, 2014. "The influence of various agricultural subsidies on sale prices of French farmland," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182749, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182749
    DOI: 10.22004/ag.econ.182749
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    References listed on IDEAS

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    Cited by:

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    2. Xusen Zhu & Chaofu Wei & Fengtai Zhang & Junyi Zhang & Yuedong Xiao & Xingyu Yang, 2022. "Influencing Factors of Farmers’ Land Circulation in Mountainous Chongqing in China Based on A Multi-Class Logistic Model," Sustainability, MDPI, vol. 14(12), pages 1-16, June.

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    Keywords

    Agricultural and Food Policy; Land Economics/Use;

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