Farm technical-economic performance depending on the degree of ecological approaches

This document presents the results of Task 3.2 (farm technical-economic performance) in workpackage (WP) 3 (farm performance of ecological agriculture) of the LIFT project. The overall aim of Task 3.2 is to assess and compare technical-economic farm performance across the European Union (EU) depending on the degree of ecological approaches adopted by farms and analyse drivers, affecting their performance. This requires an approach, which allows to consider regional specifics, while still allowing comparisons between different regions and countries. The deliverable thus consists of several academic papers, focussing on a range of different case studies, applying a wide range of methods, which can most generally be divided into empirical econometric approaches and bio-economic models. At the same time, all case studies follow a similar structure and include some common elements in terms of the applied methods, in particular a set of common indicators of technical-economic farm performance was implemented in several papers. Various approaches to differentiate farms according to the degree of ecological approaches adopted were explored, including the LIFT farm typology developed in WP1 and other strategies. Overall, our results show that the wide variety of farm types and biophysical, socio-economic and political framework conditions present in the EU matter: results of comparing technical-economic farm performance depending on the degree of ecological approaches adopted, as well as with respect to drivers of farm technical-economic performance, are heterogenous and vary between the different analyses. Therefore, this heterogeneity needs to be considered by policy makers and can most likely best be addressed by providing a policy framework, which provides the necessary flexibility to adjust measures to region-specific framework conditions in order to foster economic viability of farms in the context of an ecological transition of EU agriculture. Building on the results of this deliverable and the other deliverables within WP3, Task 5.1 will in a next step undertake an integrative assessment of all performance dimensions jointly (technical-economic, environmental and private-social performance as well as employment effects at the farm level), uncovering associated trade-offs and synergies of an increasing uptake of ecological approaches in the EU farming sector, while WP6, in particular Task 6.2 and Task 6.3, will further investigate the role of policies in the development of ecological agriculture.