Affiliation:
1. University of Natural Resources and Life Sciences Vienna, Department of Economics and Social Sciences, Institute of Sustainable Economic Development, Vienna, Austria
Abstract
Abstract
Nearly 80 per cent of Common Agricultural Policy (CAP) expenditures are spent on three different measures: first pillar payments (FPPs), agri-environmental payments (AEPs) and less favoured area payments (LFAPs). Based on a dynamic panel model and farm accounting data for Bavaria, we find that, on average, 30 per cent of FPPs, 40–50 per cent of LFAPs, but no relevant share of AEPs are capitalised into land rental prices. The capitalisation ratio varies considerably across regions. Above average capitalisation ratios for FPPs are observed in more favourable areas with high yields, a low grassland share and large farms. The same is true for LFAPs for areas with high yields, large farms and a greater share of part-time farmers.
Funder
European Commission
Austrian Science Fund
German Research Foundation
Publisher
Oxford University Press (OUP)
Subject
Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)
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