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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
    DOI: 10.22004/ag.econ.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), pages 1-10.
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    6. 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 and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(1), pages 250-260.
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    9. Isabel Vanslembrouck & Guido Van 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, November.
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    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).
    2. Annen, Dominic Norbert & Wieck, Christine & Kempen, Markus, 2013. "Animal Welfare in Public and Private Standards and On-Farm Compliance," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(03), pages 1-16, August.

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