Recommendations for increasing the acceptance of agri- environmental schemes - Results of an empirical study in Lower Saxony

Abstract

Since 1992 agri-environmental schemes (AES) have been a mandatory part of the second pillar of the Common Agricultural Policy of the European Union. The goal of AES is to integrate nature protection and conservation into agricultural production. In Germany AES are implemented by the Federal States. Currently in Lower Saxony and Bremen the budget for rewarding the achievement of AES has not been exhausted to the full extent. Therefore, it is desirable to increase farmers' participation in AES. This paper shows how farmers' attitudes towards AES are generated and how participation rates could be increased. First of all, different economic and non-economic factors which have an impact on the acceptance of AES will be identified on the basis of a detailed literature analysis. From the economic point of view it is decisive for the acceptance of AES that the compensatory payment equates to the costs incurred in carrying out the AES. Two of the most important non-economic influencing factors are the advisory services concerning the implementation of AES and the farmers' level of confidence in agri-environmental policy. In a second step the results of an empirical study conducted by the authors in June 2008 among farmers in Lower Saxony will be presented. In the course of this empirical study the farmers' attitudes towards AES and towards new innovative elements of AES were elicited. These include resultoriented payment, auctions, participative elements and regionalisation. It becomes apparent that the farmers' participation in AES can be increased by result-oriented payment, by the possibility of participation during the development process of AES and by regionalisation. However, there are uncertainties regarding auctions. To increase participation in AES it would be necessary to account for the wishes of the farmers. Otherwise participation in AES could not be expected to increase. The implementation of result- oriented payment, regionalisation