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Direct payments and rent extraction by land owners: Evidence form New Member States AgEcon
Van Herck, Kristine; Vranken, Liesbet.
Since the accession of the eight Central and Eastern European countries, farmers in these countries started to receive substantial agricultural subsidies. Agricultural subsidies alter farmer production incentives and thus factor demand and factor prices. Hence, agricultural support has an impact on land rents. This paper analyses the impact of the introduction of direct payments on land rents in the new member states and correlates econometrically land rental price data with support measures while controlling for other effects. The impact of direct payments on land rents is not only found to be statistically significant, but also economically important as 15% of the direct payments are capitalized in land rents in the new member states.
Tipo: Conference Paper or Presentation Palavras-chave: Land rental prices; Farm subsidies; New member states; Agricultural and Food Policy; Q12; Q18.
Ano: 2011 URL: http://purl.umn.edu/99583
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The Incidence of Agricultural Subsidies on Farmland Rental Rates: Overcoming Bias From Inertia, Expectations, and Tenancy Arrangements AgEcon
Hendricks, Nathan P.; Janzen, Joseph P.; Dhuyvetter, Kevin C..
Recent studies indicate that the effect of government subsidies on rental rates for farmland may be lower than once thought and lower than predictions from theory. However, there are still a number of unresolved issues in estimating subsidy incidence econometrically. We identify three such issues, inertia, expectations, and tenancy arrangements, and employ panel data from the state of Kansas to resolve them. Our econometric model suggests that subsidy incidence on rental rates is low in the short run, but consistent with predictions from theory in the long run.
Tipo: Conference Paper or Presentation Palavras-chave: Farm subsidies; Incidence; Cash rents; Agricultural and Food Policy; Land Economics/Use; Q1; H5.
Ano: 2010 URL: http://purl.umn.edu/61469
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