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Collective agri-environmental schemes in current policies
Collaboration and collective action of farmers can facilitate implementation of agri-environmental practices. Recently, agricultural policies have started to introduce collective instruments. Understanding benefits and barriers of collective action is key for effective policy design.
For an effective provision of many agri-environmental public goods such as biodiversity, landscape or water quality, collective action and collaboration of farmers is useful or even vital (OECD 2013, Vanni 2013). For example, most agri-environmental measures require a minimum area of implementation to take significant effect on the environment. Moreover, farmers can benefit from working together due to economies of scale, risk pooling and knowledge sharing (Fischer and Qaim 2014). However, there are also certain barriers to collective action, e.g. transaction costs, incentives to free ride or lack of trust etc. (OECD 2013).
While it is often initiated by farmers themselves, collaboration is also increasingly taken up by agricultural policies. For example, the European Rural Development Regulation 2013 has introduced the possibility of group applications for agri-environmental measures (EU 2013). The Netherlands have even fully switched to a collective scheme, making collaboration of farmers compulsory for payments of agri-environmental practices (Dutch Ministry of Economic Affairs 2016).
Understanding the benefits and barriers or drawbacks of farmers’ collective action is crucial for policymakers to ensure a sustainable and effective provision of agri-environmental public goods.
For an effective provision of many agri-environmental public goods such as biodiversity, landscape or water quality, collective action and collaboration of farmers is useful or even vital (OECD 2013, Vanni 2013). For example, most agri-environmental measures require a minimum area of implementation to take significant effect on the environment. Moreover, farmers can benefit from working together due to economies of scale, risk pooling and knowledge sharing (Fischer and Qaim 2014). However, there are also certain barriers to collective action, e.g. transaction costs, incentives to free ride or lack of trust etc. (OECD 2013).
While it is often initiated by farmers themselves, collaboration is also increasingly taken up by agricultural policies. For example, the European Rural Development Regulation 2013 has introduced the possibility of group applications for agri-environmental measures (EU 2013). The Netherlands have even fully switched to a collective scheme, making collaboration of farmers compulsory for payments of agri-environmental practices (Dutch Ministry of Economic Affairs 2016).
Understanding the benefits and barriers or drawbacks of farmers’ collective action is crucial for policymakers to ensure a sustainable and effective provision of agri-environmental public goods.
This Bachelor Thesis summarizes economic advantages and disadvantages of collaboration in the context of agri-environmental measures, and gives an overview on current collective policy schemes in Europe and beyond. The focus is on a literature review.
**References:**
- Dutch Ministry of Economic Affairs 2016: “The cooperative approach under the new Dutch agri-environment-climate scheme”, The Hague
- EU 2013: Regulation (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development, Official Journal of the European Union, https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:347:0487:0548:EN:PDF
- Fischer, E. and Qaim, M. 2014: “Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?” Journal of Agricultural Economics 65(3): 683-702
- OECD 2013: “Providing Agri-environmental Public Goods through Collective Action”, OECD Publishing, Paris, https://doi.org/10.1787/9789264197213-en
- Vanni, F. 2013: “Agriculture and public goods: The role of collective action”, Springer Science, ISBN 978-94-007-7456-8
This Bachelor Thesis summarizes economic advantages and disadvantages of collaboration in the context of agri-environmental measures, and gives an overview on current collective policy schemes in Europe and beyond. The focus is on a literature review.
**References:**
- Dutch Ministry of Economic Affairs 2016: “The cooperative approach under the new Dutch agri-environment-climate scheme”, The Hague
- EU 2013: Regulation (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development, Official Journal of the European Union, https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:347:0487:0548:EN:PDF
- Fischer, E. and Qaim, M. 2014: “Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?” Journal of Agricultural Economics 65(3): 683-702
- OECD 2013: “Providing Agri-environmental Public Goods through Collective Action”, OECD Publishing, Paris, https://doi.org/10.1787/9789264197213-en
- Vanni, F. 2013: “Agriculture and public goods: The role of collective action”, Springer Science, ISBN 978-94-007-7456-8