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Possible Effects on EU Land Markets of New CAP Direct Payments

Direct payments (DP) in the EU-27 were introduced as the central element of the 2003 CAP reform and are implemented in different models. The 2013 CAP reform will change both the implementation of the DP and their budget. This study assesses the possible effects of the DP reform proposals on EU land markets and the extent to which the DP are capitalized in land prices.