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
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Creator |
Mack, Gabriele; Agroscope Reckenholz Tänikon Research Group socioeconomics 8356 Ettenhausen Switzerland Möhring, Anke; Agroscope Reckenholz Tänikon Research Group socioeconomics 8356 Ettenhausen Switzerland Ferjani, Ali Zimmermann, Albert Mann, Stefan; Agroscope Reckenholz Tänikon Research Group socioeconomics 8356 Ettenhausen Switzerland |
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Subject |
rental market; agent-based modelling; agricultural sector model; structural change; single farm payments; farm succession
Q150; Q120 |
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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.
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Publisher |
Bio-based and Applied Economics
Bio-based and Applied Economics |
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Contributor |
—
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Date |
2013-05-17
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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Format |
application/pdf
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Identifier |
http://www.fupress.net/index.php/bae/article/view/10884
http://www.fupress.net/index.php/bae/article/download/10884/12538 10.13128/BAE-10884 |
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Source |
Bio-based and Applied Economics; Vol 2, No 2 (2013); 113-130
Bio-based and Applied Economics; Vol 2, No 2 (2013); 113-130 2280-6172 2280-6180 |
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Language |
eng
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Relation |
10.13128/BAE-10884
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