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PR - Economic Effects Of On-farm Nature Conservation For Dairy Farms

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  • Berentsen, Paul B.M.

Abstract

The economic effect for farms of on-farm nature conservation is an important issue in Dutch agriculture. As nature is a public good, nature conservation cannot do without subsidies from the government. The question of how much farmers should receive in subsidies in order to keep farms engaged in conservation activities is highly topical. In this study, economic effects of on-farm nature conservation for dairy farms in a particular area in the Netherlands were determined by means of normative modelling. Based on data from farms that deal with on-farm nature conservation and data from comparable farms that are not involved in this activity two average farms were determined. Comparison of the modelling results of these two farms showed that the farm involved in conservation earns a lower income than the farm not involved in conservation. This is due to the first farmer's smaller scale, lower intensity and lower productivity. The lower income, however, was partly compensated for by conservation subsidies.

Suggested Citation

  • Berentsen, Paul B.M., 2007. "PR - Economic Effects Of On-farm Nature Conservation For Dairy Farms," 16th Congress, Cork, Ireland, July 15-20, 2007 345358, International Farm Management Association.
    • Handle: RePEc:ags:ifma07:345358
    DOI: 10.22004/ag.econ.345358
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    References listed on IDEAS

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    1. Berentsen, P. B. M. & Giesen, G. W. J., 1995. "An environmental-economic model at farm level to analyse institutional and technical change in dairy farming," Agricultural Systems, Elsevier, vol. 49(2), pages 153-175.
    2. van Wenum, J. H. & Wossink, G. A. A. & Renkema, J. A., 2004. "Location-specific modeling for optimizing wildlife management on crop farms," Ecological Economics, Elsevier, vol. 48(4), pages 395-407, April.
    3. Schrijver, R.A.M. & Berentsen, Paul B.M. & Groeneveld, Rolf A. & Corporaal, A. & de Koeijer, T.J., 2006. "Development of nature-oriented dairy farm systems with an optimization model: the case of ‘Farming for Nature’ in ‘de Langstraat’, the Netherlands," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(05-06), pages 1-10.
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