A European perspective on acceptability of innovative agri-environment-climate contract solutions

Abstract

The agri-environment-climate measures of the European Union Common Agricultural Policy are incentives aiming to reduce negative environmental impacts and increase positive effects generated from agriculture. Several criticisms have been addressed to their efficiency and effectiveness and thus, the design of innovative contract solutions is currently suggested. Among the novel contractual solutions, there are result-based payments, collective implementation of measures, the engagement of private and business actors in value chains, and new forms of land tenure systems coupled with environmental clauses. Little is known about the factors at interplay influencing farmers’ decision to uptake such contracts. The present paper investigates the acceptability determinants of the above-mentioned novel contractual solutions concerning a sample of nearly 1900 farmers from 10 European Union countries. The analysis is based on a questionnaire built through a common research framework. We apply ordered logistic regressions: both proportional and partial proportional odds models are used. Farmers’ preferences are interpreted by splitting the innovative contractual solutions into 13 individual contractual features which are then modeled in combination with the structural characteristics of the farms and the sociodemographic and behavioral characteristics of the farmers. We estimate farmers’ willingness to enroll in result-based, collective, value-chain, and land tenure contracts and highlight the positive and negative factors potentially influencing farmers’ acceptability of each type of contract.