We assess the effects of the 2013 CAP reform on the capitalization of decoupled payments in land rental values. Our estimates suggest that the reform leads to an increase in the capitalization of decoupled payments by additional 18 cents for each Euro of decoupled payments relative to the pre-reform situation. However, there is a relatively large variation in the reform effects between Member States (MS) particularly between Old Member States (OMS) and New MS (NMS). In NMS the capitalization rate slightly reduces from 83% in the pre-reform period to 79% in the post-reform period. Although the rate is significantly lower in OMS, it doubles (from 21% to 43%) due to the reform. The main source of the post-reform capitalization in the European Union (EU) are the entitlement stock change accounting for 19% of total post-reform capitalization level, followed by the internal convergence of payments with 18%, the budget change (including external convergence) with 1%, and the differentiation of payments (redistributive payment) with -7%. Overall, our estimates suggest that on average in the EU, the non-farming landowners’ policy gains are 27% of the total decoupled payments in the post-reform period compared to 18% in the pre-reform period.