Concern for animals, other farmers, or oneself? Assessing farmers' support for a policy to improve animal welfare

Public acceptance of farming practices relating to animal welfare is becoming increasingly important for dairy farmers. In this study, we assess dairy farmers' willingness to pay to support a policy aimed at improving calf welfare and link this to farmers' social preferences. We conceptualize the farmer's decision into private reasons and motivations to improve animal welfare or industry reputation. Our data come from a survey with over 400 Irish dairy farmers that included an experimental component. Specifically, we utilized a contingent valuation referendum method to elicit farmers' willingness to pay. We also used a financially incentivized social value orientation scale based on competitive, individualistic, prosocial, and altruistic preferences. Our findings indicate that most farmers are supportive of a policy scheme to improve animal welfare, and higher social value orientation (i.e. more altruistic preferences) is positively associated with higher willingness to pay. More detailed analysis suggests that industry concern is associated with more altruistic preferences but not concern for animal welfare. Our findings have important policy implications as we show that the majority of farmers are willing to financially support the implementation of a policy that can help to prevent public bads.