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Participation, compliance and synergies at the farm level between the single payments scheme and farm certification labels

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  • Wieck, Christine
  • Annen, Dominic N.

Abstract

Most European farmers receive direct payments under the Single Payment Scheme and in addition, are member of farm certification schemes. Incentives to participate in these schemes are manifold: farm requirements often at least partially overlap, farm structure allows rather easy compliance, but also low monitoring intensities, detection rates, or sanctions may contribute to “free ride” on participation. The paper develops a theoretical model that explains farmer’s joint compliance behaviour and determinants of participation and tests the model using individual farm survey data. Evidence from the survey indicates that farmers weigh the relevance of compliance, control, detection and sanctions differently for the Single Payment Scheme and farm certification but strive to comply with all rules. Hence, potentially expected trade-off between costs and gains of participation and related compliance behaviour only partially occurs.

Suggested Citation

  • Wieck, Christine & Annen, Dominic N., 2012. "Participation, compliance and synergies at the farm level between the single payments scheme and farm certification labels," Discussion Papers 122123, University of Bonn, Institute for Food and Resource Economics.
  • Handle: RePEc:ags:ubfred:122123
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    File URL: http://purl.umn.edu/122123
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    References listed on IDEAS

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    1. Ozanne, Adam & White, Benedict, 2008. "Hidden action, risk aversion and variable fines in agri-environmental schemes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), June.
    2. 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.
    3. Yuki Yano & David Blandford, 2011. "Agri-environmental policy and moral hazard under multiple sources of uncertainty," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 141-155, March.
    4. Herzfeld, Thomas & Jongeneel, Roel, 2012. "Why do farmers behave as they do? Understanding compliance with rural, agricultural, and food attribute standards," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 250-260.
    5. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, April.
    6. Adam Ozanne & Ben White, 2007. "Equivalence of Input Quotas and Input Charges under Asymmetric Information in Agri-environmental Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 260-268, June.
    7. Bartolini, Fabio & Gallerani, Vittorio & Raggi, Meri & Viaggi, Davide, 2008. "Linking Cross-Compliance And Agri-Environmental Schemes: A Case Study In Emilia Romagna," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44800, European Association of Agricultural Economists.
    8. Rob Hart, 2005. "Combating moral hazard in agri-environmental schemes: a multiple-agent approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(1), pages 75-91, March.
    9. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
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    Cited by:

    1. Annen, Dominic Norbert & Wieck, Christine & Kempen, Markus, 2013. "Animal Welfare in Public and Private Standards and On-Farm Compliance," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(3).

    More about this item

    Keywords

    Single payment scheme; cross compliance; farmers’ participation; determinants; Agricultural and Food Policy; Demand and Price Analysis; Q12; Q18;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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