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The impact of single farm payments on technical inefficiency of French crop farms

  • Kassoum AyoubaEmail author
  • Jean-Philippe Boussemart
  • Stéphane Vigeant
Research Article
  • 105 Downloads

Abstract

This paper analyses the effect of single farm payments (SFPs) introduced by the Luxembourg agreements (2003) of the Common Agricultural Policy, on the performance of crop farms in Eure-et-Loir, France, over the period 2005–2008. Technical inefficiency scores of these crop farms are first estimated. Then, the estimated technical inefficiency scores are regressed on SFPs received by farmers following a standard two-step procedure. The analysis shows a negative effect of SFPs on the technical inefficiency of Eure-et-Loir farms. This implies that subsidies granted to farms without production restrictions seem to reduce technical inefficiency.

Keywords

Single farm payments (SFPs) Technical inefficiency Data envelopment analysis Double bootstrap 

JEL classification

C14 C16 C34 Q12 Q18 

Notes

Acknowledgements

We would like to thank participants at the 30th European Workshop on Efficiency and Productivity Analysis and the 29ièmes journées de microéconomie appliquée for helpful comments. The authors would also thank the editor and two anonymous referees for the very helpful comments on previous versions of the paper. All remaining errors are the sole responsibility of the authors. We gratefully acknowledge that the construction of the database used in this article was funded by Agence Nationale de la Recherche project ANR-08-STRA-12-05 (POPSY).

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Copyright information

© INRA and Springer-Verlag France SAS 2017

Authors and Affiliations

  • Kassoum Ayouba
    • 1
    Email author
  • Jean-Philippe Boussemart
    • 2
  • Stéphane Vigeant
    • 2
  1. 1.CESAER, AgroSup DijonINRA, University Bourgogne Franche-ComtéDijonFrance
  2. 2.University of Lille, CNRS, IÉSEG School of Management, UMR 9221-LEMLilleFrance

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