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Potential impact of Single Farm Payments on French landowners’ decisions to withdraw land from production

Author

Listed:
  • Douadia Bougherara

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

  • Laure Latruffe

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

Abstract

The 2003 CAP reform introduces Single Farm Payments (SFPs) which are not fully linked to production but conditional on compliance with European directives related to environmental, food safety and animal welfare and maintaining the land in good environmental and agricultural conditions (GAEC). This paper focuses on the effects of the reform on land allocation in France. Since it is now possible to receive SFPs for land outside production but maintained in GAEC, we conducted an intentions survey in 2006 to investigate whether the CAP reform provides incentives to French landowners (operators and non-operators) to withdraw some land from production and put it into GAEC, and to identify the determinants behind the decisions. Despite the likely difference in conversion and cross-compliance costs, operators and nonoperators were shown to be equally interested in GAEC. The key variables in landowners' decisions to convert land into GAEC appear to be both monetary and non-monetary.

Suggested Citation

  • Douadia Bougherara & Laure Latruffe, 2007. "Potential impact of Single Farm Payments on French landowners’ decisions to withdraw land from production," Working Papers hal-01939949, HAL.
    • Handle: RePEc:hal:wpaper:hal-01939949
    Note: View the original document on HAL open archive server: https://hal.science/hal-01939949v1
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    References listed on IDEAS

    as
    1. Laure Latruffe & Sophia Davidova, 2006. "Common Agricultural Policy direct payments and distributional conflicts over rented land within corporate farms in the New Member States," Post-Print hal-02285627, HAL.
    2. Laure Latruffe & Chantal Le Mouël, 2006. "Review of policies affecting farmland mobility in France," Working Papers hal-02283460, HAL.
    3. Breen, James P. & Hennessy, Thia C. & Thorne, Fiona S., 2005. "The effect of decoupling on the decision to produce: An Irish case study," Food Policy, Elsevier, vol. 30(2), pages 129-144, April.
    4. Elodie Douarin & Alastair Bailey & Sophia Davidova & Matthew Gorton & Laure Latruffe, 2007. "Structural, location and human capital determinants of farmers’ response to decoupled payments," Working Papers hal-02822652, HAL.
    5. 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. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants of the Fallowing Decision in Kosovo," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51072, Agricultural Economics Society.

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