A Panel Data Analysis of the Determinants of Farmland Price: An Application to the Effects of the 1992 Cap Reform in Belgium

Duvivier, Romain; Gaspart, Frederic; Frahan, Bruno Henry de

doi:10.22004/ag.econ.24577

A Panel Data Analysis of the Determinants of Farmland Price: An Application to the Effects of the 1992 Cap Reform in Belgium

Duvivier, Romain ; Gaspart, Frederic ; Frahan, Bruno Henry de

This study identifies the effects of the 1992 and subsequent CAP reforms on arable farmland price in Belgium. We first propose a brief literature review of studies identifying the determinants of farmland price. Afterwards, we use a panel data set to estimate a capitalization model of farmland price. We first show that the compensatory payments introduce by the 1992 CAP reform exert a positive effect on the arable farmland price in Belgium. We also identify a structural break in the land price equation after the adoption of the new support instruments as well as a regional break between Wallonia and Flanders.

Keywords:

farmland price ; land market ; Common Agricultural Policy ; capitalization of agricultural support

Subject(s):

Agricultural and Food Policy
Land Economics/Use

Issue Date:

2005

Publication Type:

Conference Paper/ Presentation

DOI and Other Identifiers:

10.22004/ag.econ.24577

Record Identifier:

https://ageconsearch.umn.edu/record/24577