This paper investigates the impact of subsidies from the common agricultural policy on the total factor productivity of farms in the EU. We employ a structural, semi-parametric estimation algorithm, directly incorporating the effect of subsidies into a model of unobserved productivity. We...

In this paper we estimate the impact of agricultural subsidies granted under the European Union's Common Agricultural Policy (CAP) on bank loans extended to farms. According to our theoretical analysis, subsidies may either stimulate or crowd out bank loans depending on the timing of subsidies,...

The background to this study is the establishment of the Single Payment Scheme (SPS), providing decoupled support to farmers, which was the central element of the 2003 CAP reform. The Member States of the EU-15 had to implement the SPS at the latest by 2007. The Member States had some...

Economic theory and empirical findings suggest that the way in which agricultural support is provided has an influence on land markets. Support payments tend to become capitalised into land values to some degree, affecting both the sales and rental prices of land. These effects in turn have a...

This paper analyses the distributional effects of decoupled Single Farm Payments in the European Union. In a static world the SFP benefit only farmers, irrespective of the implemented SFP model and irrespective of whether entitlements are tradable or not, except when the size of the allocated...

This paper analyses the effects of the Single Payment Scheme (SPS) with and without farm structural change, and focuses on how income distributional effects and farm restructuring are impacted by the SPS under: alternative entitlement tradability, cross-compliance and CAP 'greening'...

Decoupled direct payments were introduced in the European Union (EU) by the 2003 CAP reform in form of the Single Payment Scheme (SPS) and the Single Area Payment System (SAPS). The 2013 CAP reform changed both the implementation of decoupled payments as well as its budget. We assess the...