The 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 Latruffe (1) , Laurent Piet (1) , Pierre Dupraz (1) , Chantal Le Mouël (1)

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

We investigate the determinants of agricultural land price in several regions in France over the period 1994-2011 using individual plots transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. We found a positive but relatively small capitalisation effect of the total subsidies per hectare. We found evidence that agricultural subsidies capitalised at least to some extent. However, 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 set-aside 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: France; regulations; subsidies; capitalisation; nitrate surplus area; farm land prices

Domaines: Economies et finances

Laure Latruffe, Laurent Piet, Pierre Dupraz, Chantal Le Mouël. The influence of agricultural support on sale prices of french farmland: a comparison of different subsidies, accounting for the role of environmental and land regulations. IATRC Symposium “Productivity and Its Impacts on Global Trade, International Agricultural Trade Research Consortium (IATRC). INT., Jun 2013, Seville, Spain. 20 p. ⟨hal-01208898⟩