The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union

Decoupled direct payments to farmers were introduced in the European Union (EU) in the form of the Single Payment Scheme (SPS) in 2005. The 2013 Common Agriculture Policy (CAP) reform changed both the implementation of the SPS and its budget. We assess the possible effects of the 2013 CAP reform on EU land markets, particularly the capitalization of the SPS in land rental values. Our analyses suggest that the implementation details of the 2013 CAP reform will largely determine the impact of the SPS on land markets. The key considerations are the reference period for entitlement allocation, regionalization, payment differentiation, and budgetary changes. Our analysis also implies that a number of relatively minor policy changes could have substantial impacts on land markets.

• Publication year

  2014

• Venue

  Applied Economic Perspectives and Policy

• Publication date

  2014-12-01

• Fields of study

  Agricultural and Food Sciences, Economics

• Identifiers
  DOI 10.1093/AEPP/PPU016
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Distributive leakages of agricultural support : some empirical evidence

  2014cited by this paper
• Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union

  2014influential reference
• The Capitalization of Area Payment into Land Rental Prices: Micro-evidence from Italy

  2013cited by this paper
• Farm Type Effects of an EU‐wide Direct Payment Harmonisation

  2013cited by this paper
• Land, Labour and Capital Markets in European Agriculture: Diversity under a Common Policy. CEPS Paperback. October 2013

  2013cited by this paper
• Location determinants of agricultural land prices

  2013cited by this paper
• Capitalization of direct payments in land rents: evidence from New EU Member States

  2013cited by this paper
• Regulations of Land Markets in the EU

  2013cited by this paper
• Impacts of 2003 CAP reform on land rental prices and capitalization

  2012influential reference
• The Capitalization of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States

  2012cited by this paper
• The Incidence of EU Per-Hectare Payments on Farmland Rental Rates: A Spatial Econometric Analysis of German Farm-Level Data

  2011cited by this paper
• The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates

  2009cited by this paper
• COMMON AGRICULTURAL POLICY

  2008influential reference
• Static and Dynamic Distributional Effects of Decoupled Payments: Single Farm Payments in the European Union

  2008cited by this paper
• How the EU Single Farm Payment should be modelled: lump-sum transfers, area payments or… what else?

  2008influential reference
• Single Payments of the CAP: Where Do the Rents Go?

  2008influential reference
• Cross Compliance of CAP First Pillar Measures: A Transaction Costs Assessment

  2008cited by this paper
• The Perfect Storm: The Political Economy of the Fischler Reforms of the Common Agricultural Policy

  2008influential reference
• Assessing the influence of direct payments on the rental value of agricultural land

  2008cited by this paper
• Credit Market Imperfections and the Distribution of Policy Rents: The Common Agricultural Policy in the New EU Member States

  2007cited by this paper
• WTO rules for agriculture compatible with development

  2007cited by this paper
• The potential benefits to developing countries from domestic support reductions in developed countries.

  2007cited by this paper
• AJAE Appendix: Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis

  2006influential reference
• Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty

  2006cited by this paper
• Are “Decoupled” Farm Program Payments Really Decoupled? An Empirical Evaluation

  2006cited by this paper
• Disentangling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions, and Output

  2005cited by this paper
• Decoupling farm policies: how does this affect production?

  2005cited by this paper
• Impacts of alternative agricultural income support schemes on multiple policy goals

  2004cited by this paper
• The Incidence of Government Program Payments on Agricultural Land Rents: The Challenges of Identification

  2003cited by this paper
• What's Wrong with Our Models of Agricultural Land Values?

  2003cited by this paper
• The Impacts of Different Farm Programs on Cash Rents

  2003cited by this paper
• The Incidence of Agricultural Policy

  2002influential reference
• U.S. COMMODITY POLICIES AND LAND PRICES

  2002cited by this paper
• Taxes and Subsidies in Vertically Related Markets

  2002cited by this paper
• Export Subsidies and Profit-Shifting in Vertical Markets

  2001cited by this paper
• The Transfer Efficiency and Trade Effects of Direct Payments

  2001cited by this paper
• Elasticities of Substitution and Factor Supply Elasticities in European Agriculture: A Review of Past Studies

  2000influential reference
• The production effects of agricultural income support policies under uncertainty

  1998influential reference
• Evidence of Capitalization of Direct Government Payments into U.S. Cropland Values

  1997cited by this paper
• Government Intervention in Imperfectly Competitive Agricultural Input Markets

  1991cited by this paper
• Efficiency of Alternative Policies for the EC's Common Agricultural Policy

  1989cited by this paper
• Efficient Redistribution through Commodity Markets

  1983cited by this paper

• Decomposition of changes in the agricultural land rent for the EU-28

  2026cites this paper
• Evaluating the impacts of environmental stresses on agriculture in the context of climate resilience

  2025cites this paper
• Compensating for the Indirect Effects of the Russian Invasion of Ukraine – Varied approaches from Bulgaria, Poland and Romania

  2024cites this paper
• Simulating policy mixes to reduce soil erosion and land abandonment in marginal areas: A case study from the Liguria Region (Italy)

  2024cites this paper
• Effective land ownership, female empowerment, and food security: Evidence from Peru

  2024cites this paper
• Agricultural Subsidies and Land Rental Prices: New Evidence from Meta-analysis

  2024cites this paper
• Investigating How Policies and Other Conditions Contribute to Influencing Agricultural GHG Emissions in the EU

  2024cites this paper
• Access to Land: Markets, Policies and Initiatives

  2023cites this paper
• The governance of agricultural lands in marginal areas: A conceptual framework

  2023cites this paper
• Decomposition of variations of direct payments rates on the example of selected support instruments applied in Poland

  2023cites this paper
• The capitalization of CAP subsidies into land prices in the EU

  2023cites this paper
• How has the 2013 decoupled payment reform affected farmland rental values in Northern Ireland?

  2022cites this paper
• Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece

  2022cites this paper
• From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy

  2021cites this paper
• European Union Agricultural Support ‘Coupling’ in Simulation Modelling: Measuring the Sustainability Impacts

  2021cites this paper
• The capitalisation of CAP subsidies into land rents and land values in the EU

  2021cites this paper
• The capitalisation of decoupled payments in farmland rents among EU regions

  2021cites this paper
• A meta-analysis of the capitalisation of CAP direct payments into land prices

  2021cites this paper
• Development and application of diverse modelling methods to evaluate management practices for sustainable beef finishing systems in Scotland

  2020cites this paper
• Impacts of the EU's Common Agricultural Policy “Greening” Reform on Agricultural Development, Biodiversity, and Ecosystem Services

  2020cites this paper
• EU‐Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm‐Level Analysis

  2020cites this paper
• Regional differences in the capitalisation of first and second pillar payments of the CAP into land rental prices

  2020cites this paper
• A Technical Efficiency Analysis of Financial Subsidies Allocated by the Cap in Romanian Farms Using Stochastic Frontier Analysis

  2020cites this paper
• Why Cannot Direct Payments Be Capped in Slovakia? A Political Economy Perspective

  2020cites this paper
• The Role of the Common Agricultural Policy in Enhancing Farm Income: A Dynamic Panel Analysis Accounting for Farm Size in Italy

  2020cites this paper
• The Factors Affecting Farmland Rental Prices in Slovakia

  2020cites this paper
• The impact of Natura 2000 designation on agricultural land rents in Germany

  2019cites this paper
• Passive farming and land development: A real options approach

  2019cites this paper
• Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment

  2019cites this paper
• THE IMPACT OF COMMON AGRICULTURAL POLICY ON SOCIO-ECONOMIC DEVELOPMENT IN POLAND

  2019cites this paper
• Infl uence of the common agricultural policy on Bulgarian agriculture

  2019cites this paper
• Lost in space? The effect of direct payments on land rental prices

  2018cites this paper
• The Capitalisation of CAP Payments into Land Rental Prices: A Panel Sample Selection Approach

  2018cites this paper
• Is forestry really more profitable than upland farming? A historic and present day farm level economic comparison of upland sheep farming and forestry in the UK

  2018cites this paper
• The Incidence of Agricultural Subsidies on Rental Rates for Grassland

  2018influential citation
• First findings of brown hare (Lepus europaeus) reintroduction in relation to seasonal impact

  2018cites this paper
• The impact of agri-environmental policies and production intensification on the environmental performance of Dutch dairy farms

  2018cites this paper
• Political Coalitions in Agricultural and Food Policies

  2018cites this paper
• The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening

  2018cites this paper
• The Impact of the 2013 CAP Reform on the Decoupled Payments' Capitalization into Land Values

  2018cites this paper
• The impact of agri-environmental policy and infrastructure on wildlife and land prices

  2018influential citation
• Simulateur pédagogique des effets de répartition des soutiens de la PAC au niveau national

  2018cites this paper
• Is forestry really more profitable than upland farming? A historic and present day farm level economic comparison of upland sheep farming and forestry in the UK

  2018cites this paper
• Urban Assessing potential coupling factors of European decoupled payments with the Modular Agricultural GeNeral Equilibrium Tool

  2017influential citation
• Capitalisation of the SPS into Agricultural Land Rental Prices under Harmonisation of Payments

  2017influential citation
• ANALYSIS OF FINANCIAL SUBSIDIES ALLOCATED BY THE COMMON AGRICULTURAL POLICY TO EUROPEAN FARMS IN REDUCING ECONOMIC-TERRITORIAL INEQUALITIES BY INDEXES OF CONCENTRATION

  2017cites this paper
• Cluster analysis of selected world development indicators in the fields of agriculture and the food industry in European Union countries

  2017influential citation
• Impact of increasing agricultural domestic support on China’s food prices considering incomplete international agricultural price transmission

  2017cites this paper
• Les choix français en matière de convergence des aides découplées de la PAC à l’horizon 2019

  2017cites this paper
• Trade Impacts of Agricultural Support in the EU

  2017cites this paper
• Land markets in Europe : Institutions and market outcomes

  2016cites this paper
• The Impact of Agricultural Subsidies on the Corn Market with Farm Heterogeneity and Endogenous Entry and Exit

  2016cites this paper
• The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices

  2016influential citation
• How decoupled is the Single Farm Payment and does it matter for international trade

  2016cites this paper
• Comparison of Operating Subsidies in Agriculture in EU Countries

  2016cites this paper
• Simulation of the impact of greening measures in an agricultural area of the southern Italy.

  2015cites this paper
• Analysis of Operating Costs of Subsidies in the Field of Agriculture of EU Countries

  2015cites this paper
• Wspólna Polityka Rolna - czy faktycznie?

  2015cites this paper
• The Political Economy of the 2014-2020 Common Agricultural Policy: An Imperfect Storm. CEPS Paperback, 17 August 2015

  2015cites this paper
• Opportunities to improve farming systems to achieve adaptability to climate change

  2015influential citation
• Impact of the 2014-2020 CAP reform on the economic performance of Polish farms

  2015cites this paper
• The Capitalization of Area Payment into Land Rental Prices: Micro-evidence from Italy

  2013cites this paper
• Farm Type Effects of an EU‐wide Direct Payment Harmonisation

  2013cites this paper
• The capitalisation of agricultural subsidies into farmland prices

  year unknowncites this paper