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Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations

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

Abstract

This paper investigates the determinants of agricultural land price in several regions in France over the period 1994-2011, using individual plot transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. It found a positive but relatively small capitalisation effect of the total subsidies per hectare. The data revealed that agricultural subsidies capitalised, at least to some extent, but the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on 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.

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  • Latruffe , Laure & Piet, Laurent & Dupraz, Pierre & Le Mouël, Chantal, 2013. "Influence of Agricultural Support on Sale Prices of French Farmland: A comparison of different subsidies, accounting for the role of environmental and land regulations," Factor Markets Working Papers 163, Centre for European Policy Studies.
    • Handle: RePEc:eps:fmwppr:163
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    References listed on IDEAS

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    1. Laure Latruffe & Jean Joseph Minviel & Julien Salanié, 2013. "The role of environmental and land transaction regulations on agricultural land price: The example of the French region Brittany," Working Papers SMART 13-11, INRAE UMR SMART.
    2. Laure Latruffe & Yann Desjeux & Herve Guyomard & Chantal Le Mouël & Laurent L. Piet, 2008. "Study on the functioning of land markets in the EU member states under the influence of measures applied under the Common Agricultural Policy. Study for France," Working Papers hal-02822151, HAL.
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    4. Latruffe, Laure & Salanié, Julien & Minvie, Jean Joseph, 2013. "The Role of Environmental and Land Transaction Regulations on Agricultural Land Price: The example of Brittany," Working papers 157111, Factor Markets, Centre for European Policy Studies.
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    Cited by:

    1. Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
    2. Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
    3. Yali Zhang & Yihan Wang & Yunli Bai, 2019. "Knowing and Doing: The Perception of Subsidy Policy and Farmland Transfer," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
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