Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden
Xueqin Xueqin Zhu, A.G.J.M. Oude Lansink
Environmental Economics and Natural Resources
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
Journal of Agricultural Economics
distance functions
productivity growth
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subsidies Agriculture & Biology
Farms Medicine & Life Sciences
Sweden Medicine & Life Sciences
Netherlands Medicine & Life Sciences
Technical Efficiency Business & Economics
Crops Business & Economics
Germany Medicine & Life Sciences
The Netherlands Business & Economics
Xueqin Zhu, X., & Oude Lansink, A. G. J. M. (2010). Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden. Journal of Agricultural Economics, 61(3), 545-564. https://doi.org/10.1111/j.1477-9552.2010.00254.x
Xueqin Zhu, Xueqin ; Oude Lansink, A.G.J.M. / Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden. In: Journal of Agricultural Economics. 2010 ; Vol. 61, No. 3. pp. 545-564.
@article{1b3251130f9d492eb20efff661273b26,
title = "Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden",
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",
keywords = "agricultural policy, distance functions, productivity growth, dairy farms, reform, decomposition, uncertainty, payments, support, england",
author = "{Xueqin Zhu}, Xueqin and {Oude Lansink}, A.G.J.M.",
note = "PORmapnr. 1975",
journal = "Journal of Agricultural Economics",
Xueqin Zhu, X & Oude Lansink, AGJM 2010, 'Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden', Journal of Agricultural Economics, vol. 61, no. 3, pp. 545-564. https://doi.org/10.1111/j.1477-9552.2010.00254.x
Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden. / Xueqin Zhu, Xueqin; Oude Lansink, A.G.J.M.
In: Journal of Agricultural Economics, Vol. 61, No. 3, 2010, p. 545-564.
T1 - Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden
AU - Xueqin Zhu, Xueqin
AU - Oude Lansink, A.G.J.M.
N1 - PORmapnr. 1975
N2 - 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
AB - 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
KW - agricultural policy
KW - distance functions
KW - productivity growth
KW - dairy farms
KW - reform
KW - decomposition
KW - uncertainty
KW - payments
KW - support
KW - england
JO - Journal of Agricultural Economics
JF - Journal of Agricultural Economics
Xueqin Zhu X, Oude Lansink AGJM. Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden. Journal of Agricultural Economics. 2010;61(3):545-564. https://doi.org/10.1111/j.1477-9552.2010.00254.x