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Research article2014Peer reviewed

Capitalisation of Single Farm Payment on farm price: an analysis of Swedish farm prices using farm-level data

Karlsson, Joel; Nilsson, Pia


This paper estimates capitalisation effects of farm attributes with a particular focus on the decoupled Single Farm Payment (SFP) on prices. The spatial analysis employs a sample of mainly small- and medium-sized Swedish farm transactions sold all across Sweden; the results from a spatial multiple-membership model suggest that decoupled SFP has no influence on farm prices. Prices are profoundly influenced by residential characteristics and accessibility to urban amenities. Spatial heterogeneity is found for both regional and local levels, and a large spatial spillover effect is found between neighbouring farms. Results are confirmed by sensitivity analyses.


hedonic model; decoupled farm payments; spatial heterogeneity; multilevel

Published in

European Review of Agricultural Economics
2014, Volume: 41, number: 2, pages: 279-300

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