A Policy Analysis Of Agri Environmental Schemes Economics Essay

Agri-environmental strategies ( AES ) have become the dominant instrument of EU agri-environmental policy ( Latacz-Lohmann and Hodge, 2003 ) , more than a one-fourth of the EU-25 and aproximatly 18 % of the UK utilised agricultural country are under AES ( European Comission, 2008 ) . UK have had AES since 1985- with the debut of the Broads Grazing Marshes Conservation Scheme -however the twelvemonth 2005 was a historical twelvemonth, with the debut of two AES, the SPS and the Environmental Stewardship in 2005 replacing 11 direct subsidy strategies linked to production.

This paper will concentrate and depict the most of import European Union AES which is include on the June 2003 Common Agricultural Policy ( CAP ) reform – the Single Payment Scheme ( SPS ) – giving peculiar attending to the UK illustration.


In 2003, UE adopted a historical and cardinal reform of the Common Agricultural Policy ( CAP ) , with payments to husbandmans in rule being decoupled from production in Pilar I ( production ) class and more financess being displacement to Pillar II ( rural development and environmental ) class ( Dobbs, T. L. and J. Pretty, 2008 ) with the primary purpose of interrupting the nexus with production maximization in order to promote the EU husbandmans to a more competitory and market orientated attack ( DEFRA, 2005 ) , bring forthing what the market demands ( measure and type of harvest ) since the new subsidies, the alleged individual payment strategy ( SPS ) will be paid independently from the volume of production and straight linked to the environmental, nutrient safety, animate being and works wellness and animate being public assistance criterions, every bit good as the demand to maintain all farming area in good agricultural and environmental status ( “ cross-compliance ” ) ( Agriculture Council, September 2003 ) . Beyond this chief step, the CAP reform besides aims to simplify the applications by the husbandmans, cut downing bureaucratism thereby cut downing the clip spent both by the authorities and husbandmans, and beef up the EU ‘s agricultural trade dialogues with WTO.


The SPS grant payments besides meant to counterbalance incurred costs and bygone income derived from the acceptance of the agri-environmental policys ( AEP ) contract in order to cut down negative outwardnesss of agricultural production, the lone drawback is that the husbandmans have to voluntary commit themselves to follow patterns that go beyond the minimum “ Good Farming Practices ” ( Canton and De Cara, et Al, 2009 ) .

Together with nine other Member States, UK introduced the SPS – administered by the Rural Payments Agency ( RPA ) of DEFRA- in 2005 and replaced 11 direct subsidy strategies linked to production, it was implemented through a intercrossed strategy traveling from historic to level rate payment by 2012 ( Infoterra, 2007 ) , after which payments will be wholly based on eligible country, converted in “ entitlements ” allocated on the footing of merely that land which gave rise to the old subsidy payments during the historical mention period 2000-2002 ( DEFRA, May 2007 ) . Consequently, since 2005 in order to have the full payment, the appliers do non hold to set about any agricultural production but have to be a husbandman who exercises an “ agricultural activity ” including maintaining the full retention in good agricultural and environmental status ‘ ( ADAS, October 2004 ) and must wholly run into the cross-complilance demands, among a few other conditions related with the field size and sort of harvest production ( for eg. Booked proportion ) . The SPS is administered in England by the Rural Payments Agency ( RPA ) of Defra.


The most of import AESs are insert in the Cross-compliance ( CC ) , which is divided in two major groups, the Good Agricultural and Environmental Condition ( GAEC ) and Statutory Management Requirements ( SMR ) , which are compulsory to the husbandman in order to have wholly the SPS. The GAEC steps are based on old bing statute law but besides has a large portion of ‘common sense ‘ in farming pattern, fundamentally it requires to husbandmans to better a spot more than they are already making, saying some illustrations like Control of four extra noxious weeds, good land direction even if it is n’t in agricultural production, protection of rock walls and hedges and readying of a Soil Management Plan ( DEFRA, 2005 ) . The SMR consists of 19 steps nowadayss in the Council Directive 79/409/EEC, divididas em tres grupos! ! ! ! ! ! ! ! ! ! ! !

UK launched the Environmental Stewardship ( ES ) , which replaced the Countryside Stewardship Scheme and Environmentally Sensitive Areas payments. The strands of ES are three strategies, Entry Level Stewardship ( ELS ) , Organic Entry Level Stewardship and Higher Level Stewardship ( HLS ) , therefore if the husbandman opt to the ES can supply a utile beginning of extra financess to increase overall income degrees on the farm while switching the weight off from intensive production.

A manner to cut down negative and better positive outwardnesss

Not all ordinances have the intent to hold fiscal benefit to husbandmans, some are aimed o cut down costs elsewhere in society, for illustration by cutting harm to the environment ( eg. Organic farming ) in hurt of husbandmans ‘ net income maximization In these instances, the net cost to the agricultural industry is portion of the overall balance of costs and benefits to society in general. Frankincense husbandmans are compensated by under proctuction which usually means higher production monetary values, compared with those who do non prosecute in AESs.

The AEPs have a farther point of utilizing agribusiness as a supporter for rural development, by counterbalancing husbandmans for private bringing of positive public goods ( European Comission, 2006 encontrar uma referencia melhor i?S ) such as advancing wild biodiversity and attractive landscapes, therefore the principle is market failure, nevertheless there is groundss that Europeans are willing to pay for such positive outwardnesss ( Baylis and Peplow, et al. , 2008 ) .

Therefore, in EU with the CC scheme the husbandmans are reward either for improve positive or cut down negative outwardnesss, the

Economic Impacts of the Policy

( defra 2005 )

Rever conclusao “ instance survey of agri-environmentaˆ¦ ”

Consumption of higher degree agri-environmental strategies

In footings of economic impacts to husbandmans, basic analysis of the effects of uncoupling on farm concerns can be done by examine the grosss presently gained from subsidy grosss in different activities, and place the impact their remotion would hold on farm incomes the consequences shown in major surveies that the debut of AGSs on farming activity were non dramatic ( Revel, B. and Oglethorpe, D. , 2003 ) , although the grosss decreased somewhat ( with the exclusion of little farms, due the fixed costs impact ) they were non significant compared to the extra income from the SPS ( ADAS, March 2009 ) The European Commission in 2008 has estimated that 40 % of farms would vanish in some sectors if the CAP budget was stopped tomorrow – and farmer incomes would drop by more than two-thirds.

Environmental Impacts of the Policy

Altought Environmental impacts of the 2003 CAP AESs are difficult to cipher since they less touchable and are non truly quantified because husbandmans should already be following with the old statute law ( ADAS, March 2009 ) , and jointly with the nonentity of environmental impact indexs, in 2008 ‘s study Farmers and nutrient brief made by DEFRA sumarise the Environmental alterations in UK since 1998, which are as it follow:

around one fifth of UK home ground A/SSSIs ( Areas/Sites of Special Scientific Interest ) on agriculturally managed land were in a favorable status and one fifth were retrieving.

Agricultural emanations of methane, azotic oxide Ammonia have fallen by 12 18 13 per cent over the 10 old ages up to 2006.

Phosphate degrees in rivers in all states have fallen somewhat ;

Total energy usage by agribusiness has fallen by 22 per cent ;

the usage of nitrate and phosphate fertilizers has shown an overall diminution, nitrate by 28 per centum and phosphate by 45 per centum.

Harmonizing to literature, this was achived due to the payments inducements but besides due to husbandmans were reminded of their duties or feared losing payments if they were caught scoffing the jurisprudence.

However, the UK was the lone Member State to implement the strategy individually on a regional footing in England, Scotland, Wales and Northern Ireland. Within England, the Single Payment was implemented within three defined parts: moorland within the Severely Disadvantaged Areas ( SDA ) , non-moorland SDA and non SDA.

Unlike most Member States, the UK has decided non to choose for partial sector recoupling4 ( apart from the Scots beef calf strategy ) . The SPS is administered in England by the Rural Payments Agency ( RPA ) of Defra.

In England the SPS is implemented through a dynamic intercrossed strategy: the payment

combines historic and level ( or country ) rate constituents with the per centum portion of the former decreasing and the latter increasing so that, by 2012, payments will be wholly based on eligible country. Under the Scheme, husbandmans have been allocated “ entitlements ” . Farmers can so do an one-year claim for payment against each entitlement provided that they are run intoing the cross conformity conditions and farming each hectare of eligible land. Entitlements have been allocated on the footing of the figure of eligible hectares ( which exclude lasting harvests and forestry ) that the husbandman had at their disposal in 2005. In Scotland and Wales and much of the remainder of the EU, entitlements were allocated on the footing of merely that land which gave rise to the old subsidy payments during the historical mention period 2000-2002.

In add-on, subsidy will be diverted to wider rural development and environmental

enterprises, which husbandmans can set about. The CAP reform understanding allowed Member States to implement these alterations otherwise in separate parts. The UK has taken up this

option to enable all four agribusiness sections ( in England, Scotland, Wales and

Northern Ireland ) to take the attack that best suits their demands and meets their precedences.

On 12 February 2004, the Secretary of State announced that the payments in England

would be regional and level rate based and that this would be phased in from 2005 to 2012,

with the level rate component of the entitlement get downing at 10 per cent and increasing to 100

per cent by 2012. To ease the passage to level rate payments, husbandmans would have an

component of the entitlement based on their single mean historic grosss in the

mention period 2000-02. On 22 April 2004, farther elucidation was announced. Three

distinguishable parts will be created within England – land within the moorland line and within the

highland Badly Disadvantaged Areas ( SDAs ) , other highland SDAs and set down outside the SDAs.

The overall mean payment rate for the 2005 Single Payment Scheme ( SPS ) in

England was ?183 per hectare.

2. Average payment rates per hectare are related more to farm type than to farm size.

Retentions classified as “ assorted ” and “ cereals ” received the greatest payment rates

per hectare. Those classified as “ hog, domestic fowl and gardening ” , “ LFA graze

farm animal ” and “ other ” received the lowest rates of payment per hectare.


to set up a profitable, competitory and efficient agriculture and nutrient sector which protects and enhances our countryside and produces healthy nutrient valued by and accessible to consumers. This overarching purpose is made up of a figure of economic, societal and environmental results which are being delivered by a scope of policy steps and enterprises:

Outcomes – Economic

aˆ? Improved co-operation and trust throughout the nutrient concatenation

aˆ? More efficient and competitory supply concatenation

aˆ? Increased and sustained farm profitableness and efficiency

aˆ? Farm invention and endeavor contributing to a flexible and dynamic rural economic system

Outcomes – Environment

aˆ? Better apprehension of environmental direction by the agriculture industry

aˆ? Improved river H2O quality

aˆ? Improved farming area biodiversity and wildlife home grounds

aˆ? Reduced environmental cost of nutrient distribution

Supported by environmental protection steps including cross-compliance demands under the Single Payment Scheme, the Environmental Stewardship strategies and enterprises and ordinances to command diffuse H2O pollution from agribusiness

Outcomes – Sociable

aˆ? Improved nutrient quality and consumer acceptance of healthy diets

aˆ? Improved animate being wellness and public assistance criterions

aˆ? Increased accomplishments degrees in the nutrient and agriculture sectors

aˆ? Increased figure of new entrants start up concerns

aˆ? Creating chances for locally produced nutrient

The Policy Commission recommended uncoupling subsidies from production in order to promote the agriculture industry to travel closer to the market

However some alterations had been made in the O que esta a seguir:

The CAP Health Check was a scheduled reappraisal of the CAP, following the last major reform in 2003. The alterations to the EU regulations introduced in the CAP Health Check were designed to streamlime and modernize the CAP and guarantee it is working efficaciously, expeditiously and merely.

To claim under the strategy you must keep SPS entitlements. You must besides hold an eligible hectare of land for each entitlement you wish to claim payment on.


The entire Public cost of SPS execution aggregating the policy, support and review costs is estimated at ?8.3 million compared with the estimated value of the benefits furies from ?24 million to over ?40 million ( ADAS, 2009 ) .

Aggregating the policy, support and review costs, the public cost of imthe Cross Conformity policy is estimated at ?8.3 million


The reforms themselves and subsequent policy development were important accomplishments, but the execution of the SPS has been let downing. The complexness of the strategy, the graduated table of the IT system and the comparatively short bringing timescale combined with re-organisation of the RPA meant that this was ever traveling to be a high hazard undertaking. The holds to payments and troubles over obtaining information from the SPS helpline was a serious distraction and fiscal job for husbandmans that must non be repeated in subsequent old ages. Revisiting and simplifying the system will be a cardinal portion of this.

Environmental Stewardship can supply a utile beginning of financess to increase overall

income degrees on the farm while switching the accent off from intensive production.

However, these strategies do still necessitate land to be actively managed. You should see with clients who are be aftering to go forth the industry the understanding length with respect to the above strategies, peculiarly as there is a link for five old ages with the ELS and 10 old ages with the HLS.

aˆ? improved environmental results:

a?’ a better risk-based government which targets reviews etc. more systematically

a?’ more incorporate and holistic thought by industry, which could take to better

direction of environmental hazards

a?’ ordinances which are simpler to follow, ensuing in better conformity by concerns

( peculiarly smaller administrations )

aˆ? nest eggs in the cost of conformity, due to more incorporate believing ensuing in advanced

and hence cheaper conformity

aˆ? chances to undertake bing restrictions and issues within each government

aˆ? possible nest eggs on Environment Agency IT costs, as discussed in subdivision 2.7


i‚· Agricultural activities cover about three quarters of the UK land country.

i‚· In 2008 the entire UK country of land on registered agricultural retentions was 17.5 million hectares.

i‚· Around 8 million hectares of farming area in the UK are managed under agri-environment strategies.

Ver o “ agri-environmental schemesaˆ¦ ”

Excelente conclusao no abstract de “ agri-environmental policies aˆ¦ ”

However their effectivity is strongly dependent on whether they have been suitably targeted in clip and infinite, and thereby depends on the features of such characteristics at a local degree ( such as breadth, type and extent of flora screen, landscape arrangement ) . Such information ( including whether steps are implemented in the appropriate location on a farm ) are non routinely known. This may ensue in uneffective execution of extenuation options by farm directors, and inaccurate appraisals of pollutant loss in catchment graduated table theoretical accounts used for policy support.

Post 2013, the drivers for CAP could alter to include, for illustration, increased significance of clime alteration version. I

It may besides be possible to seek continuance and addition of Environmental Stewardship funding through Pillar II of CAP with funding traveling from Pillar 1.

A cardinal issue is the extent that farms in states that have decoupled are really

handling the payment as portion of farm income and efficaciously matching it.

Our findings are that ordinance can be really effectual in altering farm patterns.

without ordinance but it is the regulative procedure that has brought this to the bow. For illustration, three of the farms in the instance surveies did place fiscal benefits from cost nest eggs ensuing from the direction alterations they had made which could hold been achieved in any event should they have so chosen. Examples are better recording of organic manure taking to more efficient usage, benefits from preparation, and decreased accidents all brought about by ordinance.

EPP2 will every bit far as possible modernise environmental ordinance by

leting industry and regulators to travel towards a one license, one

regulator, one site system for major environmental allowing governments

where operable. This will present nest eggs for industry, regulators and

others and a simpler clearer system for the populace to understand.

Industry and regulators will profit from the risk-based ordinance

characteristics within the EP Regulations including the three tier attack to

ordinance: general binding rules/registrations for the lowest hazard

activities ; standard licenses for low-medium hazard activities ; and betoken

licenses for the higher hazard or non-standard activities.

Will traverse conformity impose new bureaucratic loads on husbandmans?

The replacing of a overplus of bing, bureaucratic payment strategies with the new

individual farm payment will greatly simplify husbandmans ‘ lives, but necessarily there will be paperwork to claim the payment and associating to traverse conformity. Cross conformity provides a new footing for agricultural subsidies – associating them to the bringing of of import environmental and carnal wellness and public assistance criterions. Member States will hold to inspect a sample of farms each twelvemonth utilizing a risk-based attack to guarantee that criterions are met. Therefore, we are endeavoring to develop a costeffective review government, which avoids unneeded bureaucratism.

However, there were still concerns raiseinspections.

An apprehension of husbandmans ‘ attitudes to traverse conformity can besides assist in bettering the programme ‘s effectivity in relation to a figure of issues. Understanding both the negative and positive attitudinal impact of cross conformity can assist determine the design of the policy so that it is acceptable to husbandmans and still meets policy aims.

Effectiveness of cross conformity relies on the fiscal purchase of SPS, while these are inextricably linked in the policy, it is hard to measure to what extent the impacts would be so important / available in future if the value of SP is reduced or absent.

Greater uncoupling contributes more efficaciously to environmental sweetening and sustainability ( Dobbs, T. L. and J. Pretty, 2008 ) .

“ environment cross-compliance ” 3. rating of agri-enviromental policy

“ povertypolicy and aˆ¦ ” abstract,

“ Internalization of agri-environmental policies and the function of establishments ” rever axo thousand tem boas criticas ou para a conclusao

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