Study on the functioning of land markets in the EU member states under the influence of measures applied under the Common Agricultural Policy. Study …

2008

The context of this study is the introduction of the Single Payment Scheme (SPS), pro-viding decoupled income support to farmers via the Single Farm Payment (SFP), as the central element of the June 2003 Common Agricultural Policy (CAP) reform. France has chosen to implement a historical model (SFP based on the reference period 2000-2002) with the highest possible partial coupling rates. The study aims at investigating how the SPS may influence land markets in France. One major issue is whether and to which de-gree the SPS has led to a capitalisation of agricultural support in land values, affecting both sales and rental prices of land; more specifically, the interest is how the capitalisa-…