Valuating single payment entitlements: Spain

V. Caballer, N. Guadalajara, E. de la Poza

Abstract


This paper attempts to develop a valuation method for estimating the market value of the single payment system (SPS) entitlements in the community agricultural policy (CAP) reform. These entitlements are a new agricultural intangible asset which is not linked to land and has a similar financial performance to bonds. After applying the PERT method, which was applied to the inherent risk involved in valuing fixed income assets, and specifically to the uncertainty of CAP after 2013, this methodology is applied to estimate the average value of entitlements in Spain.

Keywords


SPAIN; FARMS; CAP; SUBSIDIES; VALUATION

Full Text:

PDF


DOI: 10.5424/sjar/2009074-1088