Influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations

Laure L. Latruffe (1) , Laurent L. Piet (1) , Pierre P. Dupraz (1) , Chantal Le Mouël (1)

1 SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires

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.

Mots clés: farmland price; agricultural subsidies; environmental regulations; france

Domaines: Economies et finances

Laure L. Latruffe, Laurent L. Piet, Pierre P. Dupraz, Chantal Le Mouël. Influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations. 2013. ⟨hal-00939781⟩