The Value of EU Agricultural Landscape

The present paper provides a meta-analysis of agricultural landscape valuation studies and through the estimated benefit transfer function it projects the value of EU landscape. The analyses are based on information from more than thirty European and Non-European studies which use stated preference approach to uncover the society's willingness to pay (WTP) for landscape. Our calculations show that, the per hectare WTP in EU varies between 89 and 169 €/ha with an average value of 142 €/ha in 2009. Further the calculations indicate that the total value of EU landscape in 2009 is estimated to be in the range of €16.1 – 30.8 billion per year, with an average of €25.8 billion, representing around 7.5 percent of the total value of EU agricultural production and roughly half of the CAP expenditures.landscape, benefit transfer, WTP, Consumer/Household Economics, Environmental Economics and Policy, Public Economics, Q51, Q41,

Valuation of EU Agricultural Landscape

The present paper provides a meta-analysis of agricultural landscape valuation studies and through the estimated benefit transfer function it projects the value of EU landscape. The analyses are based on information from more than thirty European and non-European studies which use a stated preference approach to uncover society's willingness to pay (WTP) for agricultural landscape. Our calculations show that, the WTP in the EU varies between 134 and 201 €/ha with an average value of 149 €/ha in 2009. Furthermore the calculations indicate that the total value of EU landscape in 2009 is estimated to be in the range of €24.5 – 36.6 billion per year, with an average of €27.1 billion, representing around 8 percent of the total value of EU agricultural production and roughly half of the CAP expenditures.Agricultural landscape, valuation, willingness to pay, meta-analysis, benefit transfer.

Distributional Effects of CAP Subsidies: Micro Evidence from the EU

In this paper we estimate the income distributional effects of the common agricultural policy (CAP) for farmers and landowners. First, we theoretically analyse the level of farmers' and landowners' gains from coupled and decoupled payments. Second, using a unique farm level panel data set from the FADN for the period 1995-2007 we employ the fixed effects, the Heckman selection bias and the GMM estimators to estimate income distributional effects of CAP subsidies. The results do not confirm the theoretical hypothesis that landowners benefit a large share of the CAP subsidies. According to our estimates, farmers gain between 60% to 95%, 80% to 178% and 86% to 90% of the total value of coupled crop/animal, coupled RDP and decupled payments, respectively. The CAP subsidies are only marginally capitalised in land rents. Our results suggest that the rental rates are more responsive to structural variables and show a strong time dependency, suggesting the presence of rigidities in the EU rental markets, which constraint the adjustment of land rents to market signals and thus reduce landowners' gains from the CAP.Distributional effects, panel microdata, GMM, CAP, land rents.

Distributional Effects of CAP Subsidies: Micro Evidence from the EU

In this paper we estimate the income distributional effects of the common agricultural policy (CAP) for farmers and landowners. Using a unique farm level panel data set from the FADN for the period 1995-2007 we employ the fixed effects, the Heckman selection bias and the GMM estimators to estimate income distributional effects of CAP subsidies. The results do not confirm the theoretical hypothesis that landowners benefit a large share of the CAP subsidies. According to our estimates, farmers gain between 60% to 95%, 80% to 178% and 86% to 90% of the total value of coupled crop/animal, coupled RDP and decupled payments, respectively. The CAP subsidies are only marginally capitalised in land rents. Our results suggest that rental rates are more responsive to structural variables and show a strong time dependency, suggesting the presence of rigidities in the EU rental markets, which constraint the adjustment of land rents to market signals and thus reduce landowners' gains from the CAP.Agricultural and Food Policy,

The Value of EU Agricultural Landscape

The present paper provides a meta-analysis of agricultural landscape valuation studies and, through the estimated benefit transfer function, projects the value of EU landscape. The analyses are based on information from more than thirty European and non-European studies which use a stated preference approach to uncover society's willingness to pay (WTP) for agricultural landscape. Our calculations show that, the WTP in the EU varies between 134 and 201 €/ha with an average value of 149 €/ha in 2009. Furthermore the calculations indicate that the total value of EU landscape in 2009 is estimated to be in the range of €24.5 – 36.6 billion per year, with an average of €27.1 billion, representing around 8 percent of the total value of EU agricultural production and roughly half of the CAP expenditures.JRC.DDG.J.5-Agriculture and Life Sciences in the Econom

A Bayesian Total Factor Productivity Analysis of Tropical Agricultural Systems in Central-Western Africa And South-East Asia

This paper computes and analyses total factor productivity (TFP) growth rates for tropical agricultural systems in Central-Western Africa and South-East Asia. Two regions that despite sharing common agro-ecological conditions, have pursued different adoption rates of green revolution technology and have reported dissimilar yields per hectare. A panel data set is constructed for the period 1987-2007 from the FAOSTAT database. A Bayesian stochastic frontier model with country specific temporal variation in technical efficiency is estimated. Technical efficiency estimates reveal that there is substantial room for improvement in both continental sub-sets and that TFP estimates show on average larger rates of growth for South-East Asian countries as compared to Central-Western African countries. Results indicate that TFP is mostly driven by technical change and countries such as Benin, and Gambia display catch-up.Bayesian Inference, Stochastic Production Frontier, Time Varying Technical Inefficiency, Total Factor Productivity Growth, Tropical Agricultural Systems, Farm Management, Productivity Analysis, C15, D24, O47,

EU-wide Distributional Effects of EU Direct Payments Harmonization analyzed with CAPRI

We argue in this paper that available econometric estimates of farmers’ risk aversion do not measure true farmers’ preferences towards risky outcomes. Available analyses are mostly of static nature and indeed measure the parameters of the synthetic optimal value function rather than the deep parameters of the utility functions. We derive analytical and empirical results in a simple dynamic and stochastic framework showing that that there is not a simple relationship between utility functions and value functions when agents have many decision variables. In particular we find that the value function does not necessarily exhibit DARA when the instantaneous utility function satisfies DARA and conversely. We recommend performing dynamic econometric estimation with at least farm production and consumption data.distributional effects, SPS, flat-rate payment, CAP reform, farm level model, CAPRI farm type layer, International Relations/Trade, Q11, Q12, Q18,

Facing the future: strategies and investment behaviour of polish farmers

This paper analyses farm-household strategies and investment behaviour of Polish farmers with a particular focus on the perceived effects of CAP. The paper is based on a survey of Polish farmers carried out in 2006 on a sample of 63 farms. Farmers where selected in order to fit in the intersection of the following categories: different altitudes (plain/mountain); different specialisation (arable crops, livestock, fruit trees), different technology (conventional, organic). The survey includes information about farm and household structure, expectations, reaction to planned and intended investment, as well as about potential reforms such as decoupling of EU payments. Results show multifaceted expectations toward the future. The main objectives expressed by farmers are to reduce income uncertainty and to increase household worth. CAP payments are normally used on farm and concentrated on covering current costs and investment expenditure. The perspective of decoupling is expected to produce either no change or an increase of on farm investment.Common Agricultural Policy (CAP), Single Farm Payment (SFP), decoupling, impact analysis, Poland, investment behaviour., Agricultural Finance, Farm Management,

Between Markets and Policy: Farm Household's Reaction to Decoupling

The main objective of this paper is to evaluate ex post the effects of 2003 decoupling, with a specific focus on farm investment behaviour. In the past years a number of studies have addressed the issue of the impact of EU policy reforms. However, long term effects of policy changes and related impacts on structural and investment behaviour received relatively little attention in modelling exercises concerning CAP reform up to now. This study is based on a survey about 250 farm households in Italy, Germany, Poland, Spain, Greece, The Netherlands, France and Hungary. In the majority of cases, farmers stated they were indifferent to decoupling. Where any change occurred, the impact of decoupling was highly differentiated. Differences in reaction are better explained by different individual household/farm characteristics, rather than by association with a specific agricultural system.JRC.J.5-Agriculture and Life Sciences in the Econom

Income distributional effects of CAP subsidies. Micro evidence from the EU

This paper studies the income distributional effects of three main instruments of the Common Agricultural Policy (CAP) in the EU: the Coupled Direct Payments (CDP), the Rural Development Programme (RDP) and the Single Payment Scheme (SPS). We use a large set of cross-country farm level panel data for the EU covering the period 1999-2007, and employ the GMM estimator, which allows us to address important sources of endogeneity. According to our results, farmers gain 66-72%, 77-82%, and 93-109% from the CDP, SPS and RDP, respectively. These results suggest that the initiated shift in the CAP expenditure from the support of farm production activities toward supporting rural development and the provision of public goods and externalities is also in line with respect to supporting farmers' income.JRC.J.4-Agriculture and Life Sciences in the Econom