Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 399954
Title Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden
Author(s) Xueqin Zhu, Xueqin; Oude Lansink, A.G.J.M.
Source Journal of Agricultural Economics 61 (2010)3. - ISSN 0021-857X - p. 545 - 564.
Department(s) Environmental Economics and Natural Resources Group
Business Economics
Publication type Refereed Article in a scientific journal
Publication year 2010
Keyword(s) agricultural policy - distance functions - productivity growth - dairy farms - reform - decomposition - uncertainty - payments - support - england
Abstract This paper analyses the impacts of CAP reforms, particularly subsidies on technical efficiency of crop farms. An output distance function is employed and estimated together with an inefficiency effects model to capture the effects of CAP subsidies and farmer characteristics on farm efficiency. The model is applied to FADN data (period 1995-2004) of crop farms in Germany, the Netherlands and Sweden. The study shows that the 10-year average technical efficiency is 64% in Germany, 76% in the Netherlands and 71% in Sweden. The average annual changes in technical efficiency are 0.1%, 0.4% and 2.3%, respectively. The share of crop subsidies in total subsidies has a negative impact on technical efficiency in Germany but a positive impact in Sweden, although insignificant in the Netherlands. The share of total subsidies in total farm revenues has negative impacts on technical efficiency in all three countries, consistent with income and insurance effects. Positive (negative) change in technical efficiency is mainly attributable to farm size (degree of specialisation) in Germany, and degree of specialisation (degree of subsidy dependence) in the Netherlands and Sweden
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