Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices
Agricultural land prices in Sweden have been increasing steadily since Sweden joined the EU. At the same time, the common agricultural policy of the EU has changed from coupled support given to specific sectors, to decoupled direct support for basic land maintenance. The need to understand the effec...
| Autor principal: | |
|---|---|
| Formato: | H3 |
| Lenguaje: | Inglés sueco |
| Publicado: |
SLU/Dept. of Economics
2019
|
| Materias: |
| _version_ | 1855572501775515648 |
|---|---|
| author | Falkdalen, Maria |
| author_browse | Falkdalen, Maria |
| author_facet | Falkdalen, Maria |
| author_sort | Falkdalen, Maria |
| collection | Epsilon Archive for Student Projects |
| description | Agricultural land prices in Sweden have been increasing steadily since Sweden joined the EU. At the same time, the common agricultural policy of the EU has changed from coupled support given to specific sectors, to decoupled direct support for basic land maintenance. The need to understand the effects of agricultural policy decisions, how prices are determined and what factors are affecting agricultural land values, are therefore highly relevant and interlinked topics.
The aim of this thesis was to analyse how the direct support in the EU’s common agricultural policy affects farm prices in Sweden by presenting a hedonic pricing model which can be used to estimate the effect of the direct support on farm prices. A broad literature review was performed regarding the capitalisation of agricultural support on land and farms and to gain an increased understanding about what factors are most likely to influence the farm price. Factors like the quality of the land, agricultural structure, urbanisation, agricultural policies and residential characteristics were found to be important determinants of the price of agricultural land and farms and were therefore included as independent variables in the analysis.
Data were analysed in STATA by multiple regression analysis where both pooled OLS, random effects and fixed effects regressions were used to determine the correlation between the independent variables and the dependent variable, the average farm price per municipality. The results from this study indicate that the decoupled direct payment has a significant positive impact on the farm price. It also suggests that farm prices per municipality are on average 40 – 72 % higher after the introduction of the Single Farm Payment, compared to before the introduction. The prices are however not adjusted for inflation, therefore the results need to be interpreted with caution. The results from the study gives incentives for future research to further investigate the effect of different policy decisions. |
| format | H3 |
| id | RepoSLU14980 |
| institution | Swedish University of Agricultural Sciences |
| language | Inglés swe |
| publishDate | 2019 |
| publishDateSort | 2019 |
| publisher | SLU/Dept. of Economics |
| publisherStr | SLU/Dept. of Economics |
| record_format | eprints |
| spelling | RepoSLU149802020-06-04T12:17:27Z Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices Falkdalen, Maria CAP decoupled direct support farm prices hedonic model Agricultural land prices in Sweden have been increasing steadily since Sweden joined the EU. At the same time, the common agricultural policy of the EU has changed from coupled support given to specific sectors, to decoupled direct support for basic land maintenance. The need to understand the effects of agricultural policy decisions, how prices are determined and what factors are affecting agricultural land values, are therefore highly relevant and interlinked topics. The aim of this thesis was to analyse how the direct support in the EU’s common agricultural policy affects farm prices in Sweden by presenting a hedonic pricing model which can be used to estimate the effect of the direct support on farm prices. A broad literature review was performed regarding the capitalisation of agricultural support on land and farms and to gain an increased understanding about what factors are most likely to influence the farm price. Factors like the quality of the land, agricultural structure, urbanisation, agricultural policies and residential characteristics were found to be important determinants of the price of agricultural land and farms and were therefore included as independent variables in the analysis. Data were analysed in STATA by multiple regression analysis where both pooled OLS, random effects and fixed effects regressions were used to determine the correlation between the independent variables and the dependent variable, the average farm price per municipality. The results from this study indicate that the decoupled direct payment has a significant positive impact on the farm price. It also suggests that farm prices per municipality are on average 40 – 72 % higher after the introduction of the Single Farm Payment, compared to before the introduction. The prices are however not adjusted for inflation, therefore the results need to be interpreted with caution. The results from the study gives incentives for future research to further investigate the effect of different policy decisions. Sedan Sveriges inträde i EU har priset på jordbruksmark stigit kontinuerligt i Sverige. EU:s gemensamma jordbrukspolitik har samtidigt ändrats från kopplade stöd riktade till specifika sektorer, till frikopplade arealbaserade inkomststöd. Behovet av att förstå konsekvenserna av jordbrukspolitiska beslut och vilka faktorer som påverkar värdet på jordbruksmark är därför mycket viktiga och relaterade ämnen. Syftet med den här uppsatsen var att analysera hur direktstöden i EU:s gemensamma jordbrukspolitik påverkar gårdspriser i Sverige genom att presentera en hedonisk prismodell vilken kan användas för att uppskatta effekten av direktstöden på gårdspriser. En bred litteraturgenomgång genomfördes angående kapitaliseringen av jordbruksstöd i mark och gårdar och för att få en fördjupad förståelse för vilka faktorer som påverkar priset på gårdar. Viktiga faktorer som påverkar priset på jordbruksmark och gårdar är till exempel markens bördighet, strukturen i jordbruket, urbanisering, jordbrukspolitik och bostadsegenskaper, dessa faktorer inkluderades därför som förklarande variabler i analysen. Data analyserades i STATA med hjälp av multipel regressionsanalys där både pooled OLS, random effects och fixed effects användes för att bestämma sambandet mellan de oberoende variablerna och den beroende variabeln, det genomsnittliga gårdspriset per kommun. Resultaten från den här studien indikerar att det frikopplade direktstödet har en signifikant positiv påverkan på gårdspriset och att det genomsnittliga gårdspriset per kommun är mellan 40 – 72 % högre efter införandet av gårdsstödet, jämfört med innan. Priserna är dock inte justerade för inflation, vilket gör att resultaten måste tolkas med försiktighet. Resultaten från studien ger incitament till fortsatta studier för att undersöka effekten av olika politiska beslut. SLU/Dept. of Economics 2019 H3 eng swe https://stud.epsilon.slu.se/14980/ |
| spellingShingle | CAP decoupled direct support farm prices hedonic model Falkdalen, Maria Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title | Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title_full | Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title_fullStr | Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title_full_unstemmed | Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title_short | Estimating the impact of agricultural support on farm price : an analysis of Swedish farm prices |
| title_sort | estimating the impact of agricultural support on farm price : an analysis of swedish farm prices |
| topic | CAP decoupled direct support farm prices hedonic model |