Impact of CAP direct payments on French farms’ managerial efficiency - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement Access content directly
Conference Papers Year : 2008

Impact of CAP direct payments on French farms’ managerial efficiency


This paper investigates the relationship between CAP direct payments and managerial efficiency for French crop and beef farms. Managerial efficiency scores are calculated using a four-step approach that allows disentangling managerial inefficiency from other technical inefficiency components, notably what is due to unfavourable environment conditions. Then managerial efficiency scores are regressed over a set of explanatory variables, including CAP direct payments. Our empirical application, based on individual farm data and meteorological data at the municipality level for the year 2000, shows that there is a substantial component of inefficiency that is due to unfavourable conditions. Moreover, there is a significant negative relationship between managerial efficiency and CAP direct payments for crop farms, but a positive relationship for livestock farms. The type of payments also matter, with area-based and Less Favoured Area payments reducing crop farms’ efficiency but headage and agri-environmental payments increasing beef farms’ efficiency.
Fichier principal
Vignette du fichier
26121_20090120102327695_1.pdf (155.79 Ko) Télécharger le fichier
Origin : Files produced by the author(s)

Dates and versions

hal-02818109 , version 1 (06-06-2020)


  • HAL Id : hal-02818109 , version 1
  • PRODINRA : 26121


Laure Latruffe, Herve Guyomard, Chantal Le Mouël. Impact of CAP direct payments on French farms’ managerial efficiency. 12. EAAE Congress, European Association of Agricultural Economists (EAAE). INT., Aug 2008, Ghent, Belgium. 8 p. ⟨hal-02818109⟩
13 View
8 Download


Gmail Facebook Twitter LinkedIn More