IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v103y2010i5p282-293.html
   My bibliography  Save this article

Modeling a farm population to estimate on-farm compliance costs and environmental effects of a grassland extensification scheme at the regional scale

Author

Listed:
  • Uthes, Sandra
  • Sattler, Claudia
  • Zander, Peter
  • Piorr, Annette
  • Matzdorf, Bettina
  • Damgaard, Martin
  • Sahrbacher, Amanda
  • Schuler, Johannes
  • Kjeldsen, Chris
  • Heinrich, Uwe
  • Fischer, Holger

Abstract

We used a farm-level modeling approach to estimate on-farm compliance costs and environmental effects of a grassland extensification scheme in the district of Ostprignitz-Ruppin, Germany. The behavior of the regional farm population (n = 585) consisting of different farm types with different production orientations and grassland types was modeled under the presence and absence of the grassland extensification scheme using the bio-economic model MODAM. Farms were based on available accountancy data and surveyed production data, while information on farm location within the district was derived from a spatial allocation procedure. The reduction in total gross margin per unit area was used to measure on-farm compliance costs. A dimensionless environmental index was used to assess the suitability of the scheme to reduce the risk of nitrate-leaching. Calculated on-farm compliance costs and environmental effects were heterogeneous in space and farm types as a result of different agricultural production and site characteristics. On-farm costs ranged from zero up to almost 1500 Euro/ha. Such high costs occurred only in a very small part of the regional area, whereas the majority of the grassland had low on-farm costs below 50 Euro/ha. Environmental effects were moderate and greater on high-yield than on low-yield grassland. The low effectiveness combined with low on-farm costs in large parts of the region indicates that the scheme is not well targeted. The soft scheme design results from an attempt to achieve environmental and rural development objectives with only one scheme. Improving the efficiency of the scheme would require designing separate instruments for the two distinct objectives. This is in line with the Tinbergen rule, which states that consistent economic policy requires that the number of instruments equals the number of targets.

Suggested Citation

  • Uthes, Sandra & Sattler, Claudia & Zander, Peter & Piorr, Annette & Matzdorf, Bettina & Damgaard, Martin & Sahrbacher, Amanda & Schuler, Johannes & Kjeldsen, Chris & Heinrich, Uwe & Fischer, Holger, 2010. "Modeling a farm population to estimate on-farm compliance costs and environmental effects of a grassland extensification scheme at the regional scale," Agricultural Systems, Elsevier, vol. 103(5), pages 282-293, June.
  • Handle: RePEc:eee:agisys:v:103:y:2010:i:5:p:282-293
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308-521X(10)00019-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter Zander & Jeroen C.J. Groot & Etienne Josien & Isabella Karpinski & Andrea Knierim & Burghard C. Meyer & Livia Madureira & Mbolatiana Rambonilaza & Walter A.H. Rossing, 2008. "Farm models and economic valuation in the context of multifunctionality: a review of approaches from France, Germany, The Netherlands and Portugal," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 7(4/5), pages 339-360.
    2. Frank Wätzold & Martin Drechsler, 2005. "Spatially Uniform versus Spatially Heterogeneous Compensation Payments for Biodiversity-Enhancing Land-Use Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 73-93, May.
    3. Katherine Falconer & Pierre Dupraz & Martin Whitby, 2001. "An Investigation of Policy Administrative Costs Using Panel Data for the English Environmentally Sensitive Areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 83-103, January.
    4. Zander, P. & Kachele, H., 1999. "Modelling multiple objectives of land use for sustainable development," Agricultural Systems, Elsevier, vol. 59(3), pages 311-325, March.
    5. Berentsen, Paul B.M. & Hendriksen, Astrid & Heijman, Wim J.M. & van Vlokhoven, Haske A., 2007. "Costs and benefits of on-farm nature conservation," Ecological Economics, Elsevier, vol. 62(3-4), pages 571-579, May.
    6. Canton, Joan & De Cara, Stéphane & Jayet, Pierre-Alain, 2009. "Agri-environmental schemes: Adverse selection, information structure and delegation," Ecological Economics, Elsevier, vol. 68(7), pages 2114-2121, May.
    7. Happe, Kathrin & Damgaard, Martin & Osuch, Amanda & Sattler, Claudia & Zander, Peter & Uthes, Sandra & Schuler, Johannes & Piorr, Annette, 2006. "CAP-reform and the provision of non-commodity outputs in Brandenburg," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(05-06), pages 1-12.
    8. Edi Defrancesco & Paola Gatto & Ford Runge & Samuele Trestini, 2008. "Factors Affecting Farmers’ Participation in Agri‐environmental Measures: A Northern Italian Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 114-131, February.
    9. Wätzold, Frank & Lienhoop, Nele & Drechsler, Martin & Settele, Josef, 2008. "Estimating optimal conservation in the context of agri-environmental schemes," Ecological Economics, Elsevier, vol. 68(1-2), pages 295-305, December.
    10. Claudia Sattler & Johannes Schuler & Peter Zander, 2006. "Determination of trade-off-functions to analyse the provision of agricultural non-commodities," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 5(2/3), pages 309-325.
    11. van Ittersum, Martin K. & Ewert, Frank & Heckelei, Thomas & Wery, Jacques & Alkan Olsson, Johanna & Andersen, Erling & Bezlepkina, Irina & Brouwer, Floor & Donatelli, Marcello & Flichman, Guillermo & , 2008. "Integrated assessment of agricultural systems - A component-based framework for the European Union (SEAMLESS)," Agricultural Systems, Elsevier, vol. 96(1-3), pages 150-165, March.
    12. Ohl, C. & Drechsler, M. & Johst, K. & Wätzold, F., 2008. "Compensation payments for habitat heterogeneity: Existence, efficiency, and fairness considerations," Ecological Economics, Elsevier, vol. 67(2), pages 162-174, September.
    13. Wossink, G. A. A. & Oude Lansink, A. G. J. M. & Struik, P. C., 2001. "Non-separability and heterogeneity in integrated agronomic-economic analysis of nonpoint-source pollution," Ecological Economics, Elsevier, vol. 38(3), pages 345-357, September.
    14. Meyer-Aurich, Andreas, 2005. "Economic and environmental analysis of sustainable farming practices - a Bavarian case study," Agricultural Systems, Elsevier, vol. 86(2), pages 190-206, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dillis, Christopher & Biber, Eric & Bodwitch, Hekia & Butsic, Van & Carah, Jennifer & Parker-Shames, Phoebe & Polson, Michael & Grantham, Theodore, 2021. "Shifting geographies of legal cannabis production in California," Land Use Policy, Elsevier, vol. 105(C).
    2. Reidsma, Pytrik & Janssen, Sander & Jansen, Jacques & van Ittersum, Martin K., 2018. "On the development and use of farm models for policy impact assessment in the European Union – A review," Agricultural Systems, Elsevier, vol. 159(C), pages 111-125.
    3. Mack, Gabriele & Ritzel, Christian & Jan, Pierrick, 2020. "Determinants for the Implementation of Action-, Result- and Multi-Actor-Oriented Agri-Environment Schemes in Switzerland," Ecological Economics, Elsevier, vol. 176(C).
    4. Britz, Wolfgang & Ciaian, Pavel & Gocht, Alexander & Kanellopoulos, Argyris & Kremmydas, Dimitrios & Müller, Marc & Petsakos, Athanasios & Reidsma, Pytrik, 2021. "A design for a generic and modular bio-economic farm model," Agricultural Systems, Elsevier, vol. 191(C).
    5. Kuhn, Till & Schäfer, David & Holm-Müller, Karin & Britz, Wolfgang, 2019. "On-farm compliance costs with the EU-Nitrates Directive: A modelling approach for specialized livestock production in northwest Germany," Agricultural Systems, Elsevier, vol. 173(C), pages 233-243.
    6. Mack, Gabriele & Huber, Robert, 2017. "On-farm compliance costs and N surplus reduction of mixed dairy farms under grassland-based feeding systems," Agricultural Systems, Elsevier, vol. 154(C), pages 34-44.
    7. Uthes, Sandra & Piorr, Annette & Zander, Peter & Bienkowski, Jerzy & Ungaro, Fabrizio & Dalgaard, Tommy & Stolze, Matthias & Moschitz, Heidrun & Schader, Christian & Happe, Kathrin & Sahrbacher, Amand, 2011. "Regional impacts of abolishing direct payments: An integrated analysis in four European regions," Agricultural Systems, Elsevier, vol. 104(2), pages 110-121, February.
    8. Aurbacher, Joachim & Parker, Phillip S. & Calberto Sánchez, Germán A. & Steinbach, Jennifer & Reinmuth, Evelyn & Ingwersen, Joachim & Dabbert, Stephan, 2013. "Influence of climate change on short term management of field crops – A modelling approach," Agricultural Systems, Elsevier, vol. 119(C), pages 44-57.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Uthes, Sandra & Fricke, Katharina & König, Hannes & Zander, Peter & van Ittersum, Martin & Sieber, Stefan & Helming, Katharina & Piorr, Annette & Müller, Klaus, 2010. "Policy relevance of three integrated assessment tools—A comparison with specific reference to agricultural policies," Ecological Modelling, Elsevier, vol. 221(18), pages 2136-2152.
    2. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
    3. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    4. AJ A. Bostian & Moriah B. Bostian & Marita Laukkanen & Antti Simola, 2020. "Assessing the productivity consequences of agri-environmental practices when adoption is endogenous," Journal of Productivity Analysis, Springer, vol. 53(2), pages 141-162, April.
    5. Groot, Jeroen C.J. & Rossing, Walter a.H. & Tichit, Muriel & Turpin, Nadine & Jellema, André & Baudry, Jacques & Verburg, Peter & Doyen, Luc & van de Ven, Gerrie, 2009. "On the contribution of modelling to multifunctional agriculture: learning from comparisons," MPRA Paper 65467, University Library of Munich, Germany.
    6. Xiaohui Ding & Chen Zhou & Volker Mauerhofer & Weizhou Zhong & Guoping Li, 2019. "From Environmental Soundness to Sustainable Development: Improving Applicability of Payment for Ecosystem Services Scheme for Diverting Regional Sustainability Transition in Developing Countries," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    7. Schönhart, Martin & Schauppenlehner, Thomas & Schmid, Erwin & Muhar, Andreas, 2011. "Integration of bio-physical and economic models to analyze management intensity and landscape structure effects at farm and landscape level," Agricultural Systems, Elsevier, vol. 104(2), pages 122-134, February.
    8. Bamière, Laure & Havlík, Petr & Jacquet, Florence & Lherm, Michel & Millet, Guy & Bretagnolle, Vincent, 2011. "Farming system modelling for agri-environmental policy design: The case of a spatially non-aggregated allocation of conservation measures," Ecological Economics, Elsevier, vol. 70(5), pages 891-899, March.
    9. Wätzold, Frank & Drechsler, Martin, 2014. "Agglomeration payment, agglomeration bonus or homogeneous payment?," Resource and Energy Economics, Elsevier, vol. 37(C), pages 85-101.
    10. Ohl, C. & Drechsler, M. & Johst, K. & Wätzold, F., 2008. "Compensation payments for habitat heterogeneity: Existence, efficiency, and fairness considerations," Ecological Economics, Elsevier, vol. 67(2), pages 162-174, September.
    11. Bamiére, Laure & David, Maia & Vermont, Bruno, 2011. "Agri-Environmental Policies When the Spatial Pattern of Biodiversity Reserves Matters," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114239, European Association of Agricultural Economists.
    12. Zimmermann, Andrea & Britz, Wolfgang, 2014. "European Farms’ Participation in Agri-environmental Measures," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183073, European Association of Agricultural Economists.
    13. Stephen Hynes & Eoghan Garvey, 2009. "Modelling Farmers’ Participation in an Agri‐environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 546-562, September.
    14. Galioto, Francesco & Musotti, Francesco, 2023. "The governance of agricultural lands in marginal areas: A conceptual framework," Ecological Economics, Elsevier, vol. 212(C).
    15. Mettepenningen, E. & Beckmann, V. & Eggers, J., 2011. "Public transaction costs of agri-environmental schemes and their determinants--Analysing stakeholders' involvement and perceptions," Ecological Economics, Elsevier, vol. 70(4), pages 641-650, February.
    16. Bertoni, Danilo & Curzi, Daniele & Aletti, Giacomo & Olper, Alessandro, 2020. "Estimating the effects of agri-environmental measures using difference-in-difference coarsened exact matching," Food Policy, Elsevier, vol. 90(C).
    17. Drechsler, Martin & Wätzold, Frank & Johst, Karin & Shogren, Jason F., 2010. "An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes," Resource and Energy Economics, Elsevier, vol. 32(2), pages 261-275, April.
    18. Reidsma, Pytrik & Janssen, Sander & Jansen, Jacques & van Ittersum, Martin K., 2018. "On the development and use of farm models for policy impact assessment in the European Union – A review," Agricultural Systems, Elsevier, vol. 159(C), pages 111-125.
    19. Calvi, Gianpiero & Campedelli, Tommaso & Tellini Florenzano, Guido & Rossi, Patrizia, 2018. "Evaluating the benefits of agri-environment schemes on farmland bird communities through a common species monitoring programme. A case study in northern Italy," Agricultural Systems, Elsevier, vol. 160(C), pages 60-69.
    20. Russell, Noel P. & Sauer, Johannes, 2012. "Beneficial selection and the efficient procurement of ecosystem services," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124894, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:103:y:2010:i:5:p:282-293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.