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Transfer of single farm payment entitlements to farm successors: impact on structural change and rental prices in Switzerland

Bio-based and Applied Economics

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Title Transfer of single farm payment entitlements to farm successors: impact on structural change and rental prices in Switzerland
 
Creator Mack, Gabriele
Möhring, Anke
Ferjani, Ali
Zimmermann, Albert
Mann, Stefan
 
Subject rental market
agent-based modelling
agricultural sector model
structural change
single farm payments
 
Description This paper analyses the impact of tradable and non-tradable single farm payment (SFP) entitlements for farm successors on structural change and the lease market. Using the example of Swiss agriculture, the effects on rental-price trends and farm-exit rates are investigated. An ex-ante normative impact analysis is performed with the agent-based agricultural-sector model SWISSland, which simulates structural change processes and income trends in Swiss agriculture over a period of up to 15 years. A land market implemented at municipality level simulates the plot-by-plot leasing of land to surrounding neighbouring agents that is common in Switzerland. Allocation of plots to tenants as well as lease pricing is modelled taking into account the farm-specific land rents. The results show that personalised SFP entitlements which could not be transferred to a farm successor not only cause an intensification of structural change, but would also thus lead to a substantial reduction in rental prices. SFP entitlements which were successfully transferred to farm successors have only a slight impact on structural change and the rental prices of arable land. Only for grassland in the mountain region does a stronger shift result in a significant reduction in rental prices.
 
Publisher Firenze University Press
 
Date 2013-05-17
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://oaj.fupress.net/index.php/bae/article/view/3237
10.13128/BAE-10884
 
Source Bio-based and Applied Economics; Vol. 2 No. 2 (2013); 113-130
2280-6172
2280-6180
 
Language eng
 
Relation https://oaj.fupress.net/index.php/bae/article/view/3237/3237