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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

Author

Listed:
  • Laure L. Latruffe

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Laurent L. Piet

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Pierre P. Dupraz

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Chantal Le Mouël

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

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 setaside 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

  • Laure L. Latruffe & Laurent L. Piet & Pierre P. Dupraz & Chantal Le Mouël, 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," Working Papers hal-00939781, HAL.
    • Handle: RePEc:hal:wpaper:hal-00939781
    Note: View the original document on HAL open archive server: https://hal.science/hal-00939781
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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.
    3. Evy Mettepenningen & Ann Verspecht & Guido Van Huylenbroeck, 2009. "Measuring private transaction costs of European agri-environmental schemes," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 649-667.
    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.
    5. Andrew J. Plantinga & Douglas J. Miller, 2001. "Agricultural Land Values and the Value of Rights to Future Land Development," Land Economics, University of Wisconsin Press, vol. 77(1), pages 56-67.
    6. Laure Latruffe & Chantal Le Mouël, 2009. "Capitalization Of Government Support In Agricultural Land Prices: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 659-691, September.
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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. 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.
    3. 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.
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    Keywords

    farmland price; agricultural subsidies; environmental regulations; france;
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