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The persistence of the corporate farms : they survived the transition but do they have future under the CAP

Author

Listed:
  • Laure Latruffe

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Sophia Davidova

    (Kent Business School - University of Kent [Canterbury])

  • Gejza Blaas

    (VUEPP - Research Institute of Agricultural and Food Economics)

Abstract

The newly emergent landowners in the 1990s left their land in the corporate farms due to the low level of farm profitability and the high risk in the general economic environment. The accession to the EU and the introduction of the CAP Single Area Payment (SAP) could induce incentives to landowners to withdraw their land if they are not satisfied with the level of rent. The analysis in this paper, based on survey data, has indicated that, although the SAP might induce more landowners to ask for a rent increase, it is unlikely that they would massively withdraw their land from the corporate farms. However, financially constrained farms might quickly loose their capacity to compete for land in the conditions of an increased land demand.

Suggested Citation

  • Laure Latruffe & Sophia Davidova & Gejza Blaas, 2007. "The persistence of the corporate farms : they survived the transition but do they have future under the CAP," Post-Print hal-02416847, HAL.
    • Handle: RePEc:hal:journl:hal-02416847
    Note: View the original document on HAL open archive server: https://hal.science/hal-02416847
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    4. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
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