Factors affecting Participation and Compensation Requirements in Agri-Environmental Schemes: Insights from a Discrete Choice Experiment

Gunnar Breustedt, Norbert Schulz, Uwe Latacz-Lohmann

Published: 01.12.2013  〉 Volume 62 (2013), Number 4, 244-258  〉 Resort: Articles 
Submitted: N. A.   〉 Feedback to authors after first review: N. A.   〉 Accepted: N. A.

ABSTRACT

This paper uses data from a discrete choice experiment to investigate the factors affecting participation in agri-environmental schemes in Eiderstedt and Südtondern, two grassland regions in Schleswig-Holstein. As expected, higher payment rates increase farmers’ willingness to sign a conservation contract whereas stricter management prescriptions reduce participation. Besides contract design variables, a number of farm-specific variables affect farmers’ willingness to participate. Farmers, for instance, with previous experience in agri-environmental contracting are more likely to choose a contract than those without such experience. Our estimates of marginal willingness-to-accept show that farmers regard contractual obligations relating to fertilizer use and mowing dates as particularly demanding, resulting in high compensation requirements of €100 - 200 per hectare. Farms with high land use intensities – e.g. high stocking rates or low shares of permanent pasture – request higher compensation payments than less intensive farms.
CONTACT AUTHOR
DR. GUNNAR BREUSTEDT
Christian Albrechts-Universität zu Kiel
Olshausenstr. 40, 24098 Kiel
E-Mail: gbreustedt@agric-econ.uni-kiel.de
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