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Impact of Agri-environmental Schemes on Farm Performances in five EU Member States

  • Arata, L.
  • Sckokai, P.

Agri-environmental schemes (AES) of the European Union are the most important measure in terms of share on the public budget for Rural Development. Although the farmers uptake of AES is expected to strongly impact even farmer’s behavior, in the literature the attempts to investigate this impact are scarce. Our study applies a difference-in-differences propensity score matching estimator in order to perform a comparative analyses of the effects of AE measures on farmer’s practises and economic performances across five EU Member States. Results show differences in the AES effects across country as well as differences across farmers of the same country according to what extent the farm income is dependent on the AE payment. Our analyses suggests that the AE payment in Spain is not enough to compensate the large drop of the per hectare income after participation and the AE uptake does not seem to promote effectively environmental-friendly farm practises. In France and Italy the sustainable practises of farmer participants lead to an income foregone that is not fairly compensated by the AE payments. Only in Germany and UK the AE payments seem to compensate the income loss that results from changes in farmers production choices.

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File URL: http://purl.umn.edu/149771
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Paper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series 2013 Second Congress, June 6-7, 2013, Parma, Italy with number 149771.

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Date of creation: Jun 2013
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Handle: RePEc:ags:aiea13:149771
Contact details of provider: Web page: http://www.aieaa.org/

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  9. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(1), pages 79-101, March.
  10. Xiangping Liu & Lori Lynch, 2011. "Do Agricultural Land Preservation Programs Reduce Farmland Loss? Evidence from a Propensity Score Matching Estimator," Land Economics, University of Wisconsin Press, vol. 87(2), pages 183-201.
  11. 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, 02.
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