The influence of agricultural subsidies and regulations on sale prices of farmland in France
Résumé
In this chapter, the authors investigate the determinants of agricultural land price in several regions in France over the period 1994-2011 using individual plots transaction data, with a particular emphasis on agricultural subsidies and nitrate zoning regulations. They found evidence that agricultural subsidies capitalised at least to some extent. However, the magnitude of such a capitalisation depends on the region considered, on the type of subsidy considered, and on whether the location of the plot is in a nitrate surplus zone or not.