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The capitalisation of decoupled payments in farmland rents among EU regions

Gianni Guastellaa,b, Daniele Moroa, Paolo Sckokaia, Mario Venezianic

aUniversità Cattolica del Sacro Cuore (Italy), bFondazione Eni Enrico Mattei (Italy), cUniversità degli studi di Parma (Italy)

Accepted: 2020-11-13 | Published Online: 2020-11-19 |

DOI: 10.13128/bae-10034

ABSTRACT

We study the capitalisation of subsidies in the European Union (EU) regions in the years 2006-2008, the first years after the introduction of the Common Agricultural Policy (CAP) 2003 reform that decoupled subsidies from production and attached them to land. For this purpose, we use regional aggregated data and estimate the capitalisation rate upon the entire sample and, in a second stage, splitting the sample according to the implementation regime applied by the different EU Member States (MSs), following the three options introduced by the CAP regulations (historical, regional and hybrid model). We find that between 28 and 52 cents per Euro of additional subsidy capitalise into land prices in MSs that adopted the hybrid and the regional model, respectively. We find as well that subsidies do not capitalise in farmland prices in MSs that adopted the historical model.

 


The long-term fortunes of territories as a route for agri-food policies: Evidence from Geographical Indications

Cristina Vaquero Piñeiro

Università degli Studi Roma Tre (Italy)

Accepted: 2021-01-05 | Published Online: 2021-01-12 |

DOI: 10.13128/bae-9429

ABSTRACT

Once the EU has perceived the strategic importance of local peculiarities to support rural development and high-quality productions, it has emphasized the need for more place-sensitive agri-food policies. The importance of socio-economic, historical and cultural factors as transfers of intangible value-added is particularly evident in the agri-food sector. Place-blind and sectorial-oriented approaches have indeed not succeeded in dealing with the territorial heterogeneity of agri-food systems. By delving into the longstanding debate on the conceptualizations of territory and focusing on the territories of origin of the most economically performant Italian Protected Designation of Origins (PDOs), this paper empirically investigates what are the contextual conditions that have mainly contributed in the economic success of local productions. Drawing on an original geo-referenced database, the analysis is conducted on a panel of Italian municipalities and exploits non-linear dynamic panel models. Findings point out the heterogeneity of affecting territorial factors. Imbalances come from both socio-economic conditions (food PDOs) and socio-cultural knowledge (wine PDOs). This paper informs the evidence-based debate on the relevance of territorially-sensitive interventions for the future of EU agri-food and rural development policies. In the case of GIs, it should consider being more place-sensitive as well as more integrated with other agricultural and regional policies to meet the EU’s socio-economic objectives.