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The Potential Impact Of Environmental Cross‐Compliance On Arable Farming

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  • Noel P. Russell
  • Iain M. Fraser

Abstract

It is argued that the ongoing CAP/GATT reforms provide a basis for the introduction of environmental cross‐compliance (ECC). ECC enables policymakers to restrict output‐related direct support payments to those farmers who comply with specified environmental guidelines aimed at reducing the external damage effects of agricultural production. This paper is an exploratory investigation of ECC and presents the results of a farm‐level linear programming analysis of 15 North‐West England arable farms. The environmental guidelines, which relate to permanent as opposed to rotational set‐aside and to levels of fertiliser use, are widely applicable to the extent that ECC can be implemented as a voluntary policy system. They are clearly effective in achieving policy goals since all but one of the farmers investigated would comply with the full range of restrictions considered. Within this range, gross margins are reduced by up to 10 per cent while area and output of seed crops are reduced by around 22 per cent and 12 per cent respectively. Row crops area and output are more robust, each falling by just under 4 per cent.

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  • Noel P. Russell & Iain M. Fraser, 1995. "The Potential Impact Of Environmental Cross‐Compliance On Arable Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 70-79, January.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:1:p:70-79
    DOI: 10.1111/j.1477-9552.1995.tb00753.x
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    References listed on IDEAS

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    1. Sandra S. Batie & Alyson G. Sappington, 1986. "Cross-Compliance as a Soil Conservation Strategy: A Case Study," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 880-885.
    2. David E. Ervin & William D. Heffernan & Gary P. Green, 1984. "Cross-Compliance for Erosion Control: Anticipating Efficiency and Distributive Impacts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 273-278.
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    Cited by:

    1. Osterburg, Bernhard & Nitsch, Heike & Kristensen, Lone, 2005. "Environmental Standards and Their Linkage to Support Instruments of the EU Common Agricultural Policy," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24521, European Association of Agricultural Economists.
    2. Nitsch, Heike & Osterburg, Bernhard, 2008. "Criteria for an efficient enforcement of standards in relation to cross compliance," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44152, European Association of Agricultural Economists.
    3. Gomez-Limon, Jose Antonio & Arriaza Balmón, Manuel, 2000. "Socio-Economic and Environmental Impact of AGENDA 2000 and Alternative Policy Choices for Market Liberalization on an Irrigated Area in Northwestern Spain," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(2), pages 1-14, August.
    4. Paul Webster, 1999. "The Challenge of Sustainability at the Farm Level: Presidential Address," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 371-387, September.

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