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Multifunctional Policy Measures: Farmers' Choice

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  • Arovuori, Kyösti
  • Kola, Jukka

Abstract

The elements of multifunctional agriculture are strongly related to national, regional and local conditions. This indicates that it is hard to find common measures, which could efficiently enhance multifunctionality in different areas with different agricultural conditions. In order to really enhance the multifunctional role of agriculture, there is a need for newly designed measures. A need exists to have information from the groups involved in agricultural policy. To respond to this need we apply the stated choice method to find out, which measures Finnish farmers prefer when the measures introduced include multifunctionality enhancing elements. We introduced to farmers 12 different measures involving different levels of targeting, contracting and monetary compensation. We estimated a multinomial logit model to explain farmers' first choice with respect to policy options introduced. The results show that farmers are willing to accept multifunctionality enhancing elements and complementary terms of support as a basis for agricultural policy. To ensure the fulfilment of these terms a need exists for a large enough compensation. In practice, this compensation needs to cover all the costs for farmers of fulfilling the terms introduced in any particular support scheme.

Suggested Citation

  • Arovuori, Kyösti & Kola, Jukka, 2006. "Multifunctional Policy Measures: Farmers' Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21400, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21400
    DOI: 10.22004/ag.econ.21400
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    References listed on IDEAS

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    Cited by:

    1. Finocchio, Romina & Esposti, Roberto, 2008. "Determinants of farm diversification and interaction with the CAP. An application to FADN of Marche region (Italy)," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44251, European Association of Agricultural Economists.

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