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Farm choice between agri-environmental contracts in the European Union

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  • Jack Peerlings
  • Nico Polman

Abstract

The purpose of this paper is to analyse land allocation between competing agri-environmental contracts, taking into account institutional issues, the characteristics of the farm and farm household. Three types of agri-environmental contract are considered: a Biodiversity Protection Contract, a Landscape Management Contract and a Restriction on Intensive Practices Contract. The paper demonstrates that it is important to study the choices made between the different agri-environmental contracts. The reasons for this are that a unit of land can only be allocated to one contract (although the farm itself can choose to hold more than one contract) and the perceived relative marginal cost of a contract can change if the institutional setting, the farm household or the farm characteristics alter. The model uses a two-stage method. As a first stage, the probability of contract choice is determined. In the second stage these probabilities are linked to costs and the optimal contract choice is determined.

Suggested Citation

  • Jack Peerlings & Nico Polman, 2009. "Farm choice between agri-environmental contracts in the European Union," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 593-612.
    • Handle: RePEc:taf:jenpmg:v:52:y:2009:i:5:p:593-612
    DOI: 10.1080/09640560902958131
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    1. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
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    Cited by:

    1. Philippe Le Coent & Coralie Calvet, 2016. "Challenges of achieving biodiversity offsetting through agri-environmental schemes: evidence from an empirical study," Working Papers 16-10, LAMETA, Universtiy of Montpellier.
    2. Bachev, Hrabrin, 2013. "Natural resources conservation management and strategies in agriculture," MPRA Paper 46368, University Library of Munich, Germany.
    3. Bachev, Hrabrin, 2014. "Environmental Management in Agriculture – Case of Bulgaria," MPRA Paper 59054, University Library of Munich, Germany.
    4. Jelena Vapa Tankosić & Radivoj Prodanović & Vladimir Medović, 2023. "Analysis of Agri-Environmental Management Practices and Their Implementation in the Agricultural Policies of the Republic of Serbia," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    5. Lovén, Ida & Nordin, Martin, 2020. "Are agri-environmental schemes boosting farm survival?," AgriFood-WP 2020:2, Lund University, AgriFood Economics Centre.
    6. Laure Kuhfuss & Florence Jacquet & Raphaële Preget & Sophie Thoyer, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(4), pages 395-422.
    7. Bachev, Hrabrin & Yovchevska, Plamena & Mitova, Dilyana & Toteva, Desislava & Mitov, Anton, 2013. "Еко-Управление В Българското Селското Стопанство [Environmental Management in Bulgarian Agriculture]," MPRA Paper 52202, University Library of Munich, Germany.
    8. Frasa, Stefanie & Carlberg, Jared & Hogan, Robert, 2015. "Use of Contracts by Prairie Agricultural Producers," Working Papers 232328, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    9. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2015. "Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus," Working Papers hal-01148581, HAL.
    10. Calvet, Coralie & Le Coent, Philippe & Napoleone, Claude & Quétier, Fabien, 2019. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: Evidence from an empirical study in Southern France," Ecological Economics, Elsevier, vol. 163(C), pages 113-125.
    11. Harkness, Caroline & Areal, Francisco J. & Semenov, Mikhail A. & Senapati, Nimai & Shield, Ian F. & Bishop, Jacob, 2021. "Stability of farm income: The role of agricultural diversity and agri-environment scheme payments," Agricultural Systems, Elsevier, vol. 187(C).
    12. Le Coent, Philippe & Préget, Raphaële & Thoyer, Sophie, 2017. "Compensating Environmental Losses Versus Creating Environmental Gains: Implications for Biodiversity Offsets," Ecological Economics, Elsevier, vol. 142(C), pages 120-129.
    13. Dongyang Xiao & Haipeng Niu & Liangxin Fan & Suxia Zhao & Hongxuan Yan, 2019. "Farmers’ Satisfaction and its Influencing Factors in the Policy of Economic Compensation for Cultivated Land Protection: A Case Study in Chengdu, China," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    14. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2016. "Nudging farmers to enrol land into agri-environmental schemes: the role of a collective bonus," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 609-636.
    15. Wąs, Adam & Malak-Rawlikowska, Agata & Zavalloni, Matteo & Viaggi, Davide & Kobus, Paweł & Sulewski, Piotr, 2021. "In search of factors determining the participation of farmers in agri-environmental schemes – Does only money matter in Poland?," Land Use Policy, Elsevier, vol. 101(C).
    16. Westerink, Judith & Pérez-Soba, Marta & van Doorn, Anne, 2020. "Social learning and land lease to stimulate the delivery of ecosystem services in intensive arable farming," Ecosystem Services, Elsevier, vol. 44(C).
    17. Avendaño-Cantor, Diego F. & García-Arias, Ana Isabel & Ónega, Francisco & Pérez-Fra, Mar, 2015. "Agri-environmental schemes and their territorial impact in the North of Spain," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212642, European Association of Agricultural Economists.
    18. Canessa, Carolin & Ait-Sidhoum, Amer & Wunder, Sven & Sauer, Johannes, 2024. "What matters most in determining European farmers’ participation in agri-environmental measures? A systematic review of the quantitative literature," Land Use Policy, Elsevier, vol. 140(C).
    19. Pérez-Sánchez, Cristina & Pierri-Daunt, Ana Beatriz & Villamayor-Tomas, Sergio, 2024. "Unraveling spatial agglomeration patterns in agri-environmental schemes: Evidence from the improvement of steppe habitats in the Natura 2000 network in Catalonia (Spain)," Land Use Policy, Elsevier, vol. 142(C).
    20. Hrabrin Bachev, 2014. "Environmental management in agriculture," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 29-55,56-79.
    21. Bachev, Hrabrin, 2014. "Environmental management in agriculture - mechanisms, forms and efficiency," MPRA Paper 99852, University Library of Munich, Germany.

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