Verlag:
Universität für Bodenkultur Wien, Department für Wirtschafts- und Sozialwissenschaften, Institut für nachhaltige Wirtschaftsentwicklung, Wien
Zusammenfassung:
This paper contributes to the discussion on the extent of the capitalization of decoupled direct payments into land rental prices. Based on a dynamic panel model and an extensive dataset for Bavaria for 2005 to 2011, we show that a significant number of Single Farm Payments (SFPs) of the European Union (EU) Common Agricultural Policy (CAP) are captured by landowners rather than by active farmers. However, the degree of capitalization varies considerably among regions, from almost 0 to 56 cents per each additional Euro paid.