Agri-environmental schemes in the European Union: the role of ex ante costs (original) (raw)
Biotechnology Progress - BIOTECHNOL PROGR, 2005
Proposals of the European Commission stress the future importance of agri-environmental payments within the rural development policy of the European Union. The aim of this paper is to present and discuss a model for choice for plant species protection contracts in the Netherlands. The model includes transaction costs, time and the possibility of lock-in situations related to contract choice. The approach discussed is flexible because it makes it possible to introduce all kinds of technical and institutional restrictions (differences in contract design).
This paper investigates the personal and property characteristics of landowners who use EU Rural Development agri-environmental schemes (AES), as well as their motives for participation or non-participation in such schemes. The study is based on a questionnaire survey with landowners, in selected study areas in the Netherlands, Denmark, Austria, Italy and Greece. Our principal findings show that AES tend to attract more the owners of larger farms, who are frequently full-time, younger, post-primary school educated and agriculturally-trained farmers. The latter findings are contingent on local geographical particulari-ties and on subjective factors, farmers' individualities, different rural cultures, landscape types, EU and national policies and special needs of the study areas—all areas where agricultural production is increasingly marginalized, for different reasons. Subsidy scheme participation motives did not seem to be strictly economic; they also regarded personal satisfaction. They are all together generally appeared to be place specific, since the respondents from peri-urban Northern European areas were more motivated to participate in AES than respondents from Central and Southern European areas with marginal potential for agriculture. Motives for non-participation were also found to be dependent on the level of farming engagement and on case-area landscape types.
The design of agri-environmental schemes: Farmers’ preferences in southern Spain
Land Use Policy, 2015
Agri-environmental schemes (AES) play a key role in promoting the production of environmental public goods by European Union agriculture. Although extensive literature has analyzed AES, some important issues remain understudied. This paper performs an ex-ante assessment of AES in permanent cropping, analyzing several issues that have received little attention from researchers, such as ecological focus areas (EFA) and collective participation. For this purpose, a choice experiment was used to assess farmers' preferences toward AES in a case study of olive groves in southern Spain. Results show high heterogeneity among farmers, with different classes being identified, from potential participants to non-participants. As regards EFA, almost half of the farmers would be willing to accept it for low monetary incentives (€8-9/ha per additional 1% of the farmland devoted to EFA) while the rest would do it for moderate-to-high monetary incentives (€41-151/ha per additional 1% of EFA). However, for a high share of EFA (e.g., 5-7%) higher incentives would presumably be required due to the intrinsic spatial restrictions of olive groves. With regard to collective participation, we find that it is unlikely that farmers would participate collectively with the incentive of the up-to-30% EU-wide bonus. These results are relevant for policy-making now when new AES are being designed for the next programming period 2014-2020.
The Economics of Agri-environment Scheme Design
2018
Designing agri-environment schemes (AESs), the European Union's main policy tool to improve the environmental performance of farms, that result in participation in the areas of most need is a challenge faced by policymakers. A number of high level options are available to policy makers including the use of voluntary and mandatory measures, top-down versus participatory approaches, collaborative versus coordinated participation, and whether to target the schemes or apply them horizontally. Using Ireland as a case study, this paper assesses the evolving structure of AES design in the context of changing environmental targets, by creating an institutional framework to analyse past and current AESs and other measures. This information is then used in a spatial analysis comparing the location of important environmental public goods to participation in agri-environment schemes. The analysis shows that although higher uptake in extensive farming areas may not result in additionality, d...
Environmental effects of agri-environmental schemes in Western Europe
Journal of Environmental Management, 2003
Agri-environmental schemes (AES) have been introduced as part of European Union's (EU) Common Agricultural Policy and are now an important part of this. A methodological approach to analyse the policy effects of AES is outlined, in which we distinguish between performance effects (on agricultural practices) and outcome effects (environmental impact). The performance effects are further approached including measurement of improvement and protection effects based on 12 indicators on changes/maintenance of land use and agricultural management. Data from personal interviews of participating and non-participating farmers in AES measures in nine EU Member States and Switzerland were used to analyse policy effects, including single indicator effects on agricultural practices as well as combined effects at the agreement level. Significant effects were found for mineral N-fertiliser use, stocking density reduction, maintenance of a minimum livestock density and pesticides. For AES agreements regulating grassland management, fertiliser use and pesticides, clear indications of combined improvement and protection effects were found. In addition clear improvement effects of agreements regulating fertiliser and pesticides use on mainly arable lands were revealed. It is concluded that the approach presented including the 12 selected indicators has proven to be operational.
Farmers' participation in European agri-environmental policies
2002
This paper examines the factors influencing farmers' participation in several agri-environmental schemes. A multinominal logit model is used to separate between participating and nonparticipating farmers. In addition this model allows to predict farmers participation in one measure as well as in different measures simultaneously. Data stems from a survey conducted in eight European countries and includes a description of both farmer and farm characteristics. Three categories of schemes have been analysed: landscape maintenance, biodiversity protection and restriction of intensive farming practices. The combination of these three types of schemes provides eight possible packages which can be selected by eligible farmers. The multinominal logit model shows the importance of both farm and farmer as well as attitudinal characteristics on the participation in different combinations of schemes. For instance, the environmental concern favours landscape maintenance and biodiversity protection as well as their combinations with schemes requiring restrictions of intensive practices. However, it has a negative effect on the single participation in schemes requiring restrictions of intensive practices only. Our analysis confirms a number of previous findings. In addition, it shows the importance for policy makers to take into account that farmers have the opportunity to enter several schemes simultaneously. Indeed, due to cost complementarities, joint participation provides both private and public benefits.
Impacts of Agri-Environmental Policies on Land Allocation and Land Prices
2006
We develop a Ricardian framework with heterogeneous land quality to analyse the effects of agricultural and agri-environmental support policies on land allocation decisions and land prices. Four agri-environmental policy instruments are considered: a uniform area payment, a quality-dependent area payment, a mandatory buffer strip policy and a voluntary buffer strip payment. We also analyse how general tax and monetary policies
Reshaping agri-environmental subsidies: From marginal farming to large-scale rewilding
Despite continued discussion about market distortions and environmental impacts, agricultural subsidies continue to be a key component of European Union policy. About 10% of the agro-forestry subsidies are targeted at supporting agri-environment schemes, and at supporting farming in Less Favoured Areas (LFA) such as mountain regions. One of the main justifications for these agri-environmental subsidies towards marginally productive land is that they promote the conservation of biodiversity by maintaining low-intensity farming practices. Here, we critically examine this assumption and argue instead for a two-tier approach to Europe’s agri-environmental policy based on inherent land fertility and spatial scale: (i) at a local, single-farm scale, fertile agricultural land should preferentially be intensively but sustainably farmed with a focus on high yields, (ii) while simultaneously and at larger, regional scales, less-productive land, and especially protected areas, may be ecologically restored into ‘wild’ and resiliently functioning ecosystems. As such, agri-environmental subsidies towards fertile land should support the implementation of measures that benefit biodiversity while allowing, and even helping, the achievement of high agricultural yields. In contrast, agri-environmental and LFA subsidies towards marginal land and protected areas should also promote rewilding and the management of natural succession. In order for this approach to be successful, a higher proportion of the Common Agricultural Policy subsidies would need to be allocated to environmental goals.