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




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This paper analyses the impact of tradable and non-tradable single farmpayment (SFP) entitlements for farm successors on structural change and the leasemarket. Using the example of Swiss agriculture, the effects on rental-price trends andfarm-exit rates are investigated. An ex-ante normative impact analysis is performedwith the agent-based agricultural-sector model SWISSland, which simulates structuralchange processes and income trends in Swiss agriculture over a period of up to15 years. A land market implemented at municipality level simulates the plot-by-plotleasing 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 accountthe farm-specific land rents. The results show that personalised SFP entitlementswhich could not be transferred to a farm successor not only cause an intensification ofstructural change, but would also thus lead to a substantial reduction in rental prices.SFP entitlements which were successfully transferred to farm successors have only aslight impact on structural change and the rental prices of arable land. Only for grasslandin the mountain region does a stronger shift result in a significant reduction inrental prices.

Keywords: rental market ; agent-based modelling ; agricultural sector model ; structuralchange ; single farm payments ; farm succession

Subject(s): Land Economics/Use

Production Economics

Issue Date: 2013-08

Publication Type: Journal Article

DOI and Other Identifiers: ISSN 2280-6180 (print) ISSN 2280-6172 (online) (Other)

PURL Identifier: http://purl.umn.edu/156470 Published in: Bio-based and Applied Economics Journal, Volume 02, Issue 2 Page range: 113-130

Total Pages: 18

JEL Codes: Q150; Q120

Record appears in: Italian Association of Agricultural and Applied Economics (AIEAA) > Bio-based and Applied Economics Journal





Author: Mack, Gabriele ; Möhring, Anke ; Ferjani, Ali ; Zimmermann, Albert ; Mann, Stefan

Source: http://ageconsearch.umn.edu/record/156470?ln=en







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