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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; 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
 
Subject rental market; agent-based modelling; agricultural sector model; structural change; single farm payments; farm succession
Q150; Q120
 
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 Bio-based and Applied Economics
Bio-based and Applied Economics
 
Contributor
 
Date 2013-05-17
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
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
 
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
 
Language eng
 
Relation 10.13128/BAE-10884