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Economic Evaluation Of The Farm Woodland Scheme In Scotland

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  • J. R. Crabtree
  • Z. Appleton

Abstract

This paper describes an economic evaluation of planting under the Farm Woodland Scheme in Scotland based on the calculation of the Scheme's net UK Exchequer cost (NEC) and its relationship to the benefits observed through a survey of first‐year Scheme entrants. It was found that the motivation in planting was primarily for ‘environmental’ benefits such as landscape, amenity, wildlife and sport. Income and timber production were much less important. On average, payments under the Scheme under‐compensated farmers for their direct and opportunity costs associated with planting. When based on agricultural savings in the year of planting, the annual NEC was #58 per ha, but this cost increases substantially if the additionality principle is applied. Anticipated benefits in terms of farm output reduction, income diversification, employment and timber production are identified but the effects are not large. Environmental benefits were not included in the evaluation and these may provide greater justification for the expenditure.

Suggested Citation

  • J. R. Crabtree & Z. Appleton, 1992. "Economic Evaluation Of The Farm Woodland Scheme In Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 355-367, September.
    • Handle: RePEc:bla:jageco:v:43:y:1992:i:3:p:355-367
    DOI: 10.1111/j.1477-9552.1992.tb00231.x
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    Cited by:

    1. Bob Crabtree & Neil Chalmers & Nicola‐Jo Barron, 1998. "Information for Policy Design: Modelling Participation in a Farm Woodland Incentive Scheme," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 306-320, September.
    2. Francois Bonnieux & Robert D. Weaver & . University of Newcastle Upon Tyne,newcastle Upon Tyne (usa), 1995. "Managing agriculture's impacts on the environment : basic economics and international evidence," Post-Print hal-01931696, HAL.

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