Beyond Research: What’s your favourite contracts2.0 case study?

Beyond Research: What’s your favourite contracts2.0 case study?

by | Dec 1, 2022 | Allgemein, Background, Workshops & Events

Over the past 3.5 years, Contracts2.0 partners have worked on agri-environment-climate-measures in and with various regions and its stakeholders. Many valuable professional but also personal relationships have formed. Some of these unique regions, its people, products and measures are portrayed in these photographs, accompanied by their origin story. 

 

The Small Heath

Germany © Picture: HiPP GmbH & Co. Vertrieb GmbH

The picture shows a Small Heath (Coenonympha pamphilus) at HiPP’s model farm for biodiversity, the Ehrensberger Hof. Value chain approaches have great innovation potential: They have a strong bottom-up approach and can be adapted to the local situation in a targeted way. HiPP and many other organic food companies have been committed to respectful interaction with nature and natural resources for many years. They follow a multifaceted engagement for biodiversity and ecosystem services along their value chains.

Food production depends on numerous biodiversity and ecosystem services. One example is pollination services provided by insects. Insect biodiversity has declined severely in recent decades in Central Europe. For this reason, the HiPP company, in collaboration with the Bavarian State Collection for Zoology (ZSM) and the Bavarian Natural History Collections (SNSB), initiated a study to investigate the impact of organic and conventional farming on insect diversity.

This study was the first to quantitatively and qualitatively demonstrate the effects of different agricultural practices on biodiversity using molecular methods (cf. Hausmann et al., 2020). At HiPP’s model farm for biodiversity, the Ehrensberger Hof near Pfaffenhofen an der Ilm, 260 % more insect biomass was detected compared to the conventional trial farm in 2018.

This shows the importance of promoting organic farming and other biodiversity measures as part of value chain approaches. Please visit the website for more details.

Text: Birte Bredemeier, LUH

Contract Innovation Lab Flanders 

Belgium © Boerennatuur Vlaanderen

Three pictures were created in our case study regions in Flanders, Belgium. In Voeren, a western part of Belgium (where the white cow unsuccessfully tries to escape the camera by hiding behind a tree) we aim to preserve the landscape, biodiversity, and agricultural values by including grasslands and woody elements.

Our CIL-case Koolstofboeren (carbon farming) aims to increase the organic matter content in soil by incorporating wood chips from landscape management in the soil, which has a positive effect on the soil structure, water infiltration, erosion control and soil biodiversity as can beautifully be seen in the two pictures showing the soil.

Castiglione di Garfagnana in Early Summer

Italy © Cinzia Lenzarini, Unione Comuni Garfagnana

This small and rare plain enclosed by mountains still offers a manicured and harmonious agricultural landscape, just as we would like our territory to continue to be. In the background, the Apuan foothills give an idea of the orographic complexity and great expanse of the forest, where Chestnut groves survive with centuries-old majestic plants, interspersed with small, ancient orchards rich in biodiversity.

To the right, the Omo Morto chain (Apuan Alps) which dominates the landscape, with its unmistakable silhouette of a sleeping giant.

In the field in the foreground, alternate horticultural species of local varieties now at risk of extinction such as the Nano di Verni corn, the Rossa di Sulcina potato, the Rossetto wheat, the Giallorino della Garfagnana bean, and finally the bales of hay, ready to feed the small flocks and herds of local breeds: white Garfagnina sheep and Garfagnina cow.

In this valley farmers are the custodians of an endangered animal and plant genetic heritage, which has survived the great social and economic changes. It has now fallen to us to capture its flavours, agronomic traditions, myths, and tales that have sprung from it.

In this snapshot we see much of the agricultural Garfagnana, rich in biodiversity and culture, sculpted by the strong identity and tenacity of its inhabitants. It is preserved by the will and passion of custodian farmers, suspended between abandonment and difficult enhancement and redevelopment of life in mountain and interior areas.

Gentian Caching

Hungary © Eszter Cibik, Őrség National Park

Here we are in a molinia meadow, in the Őrség national park. Every condition favours species-rich grassland: high annual rainfall and humidity, mild temperatures, soil moisture…
What other things are necessary for long-term nature conservation? Good relationship and communication with farmers. Results-based payment (RBP), as a planned contract type was discussed and chosen with local stakeholders, including farmers. RBP focuses on species-rich hay meadows in Őrség and some of the farmers take part of the testing.

In the picture, you can see a caught moment, when the farmer and me are monitoring the unmown parcel of the meadow. He was obliged not to cut 5% of the grassland in order to enhance seeding. The marsh gentian (Gentiana pneumonanthe), one of our protected species, is a defined indicator, that scores in RBP. Bingo! We have just found several ones in blossom in the unmown area in that moment. Thus, we are on the right path to increase their numbers.

In the field visit, structure elements, plant and butterfly species are monitored – following an indicator check list. The butterfly net functions also as a modern shepherd’s crook as you can see. Farmers are usually surprized at first, then enthusiastic about counting butterflies.
Farmers are more positive towards AECMs, if they are part of the planning process. They are also willing to and capable of measuring indicators.

Fuenlabrada Agricultural Park

Spain © Inés Gutiérrez Briceño, UAM

Given the paradigms of global change, Fuenlabrada agricultural park was created to support peri-urban agriculture in the metropolitan region of Madrid. Despite the strong urban sprawl during the last decades, horticultural production has been maintained in the area. The agricultural park strengthens this production from an integral perspective and articulates actions based on the needs of the agricultural sector. The maintenance of this activity has also allowed the conservation of traditional varieties and the traditional agricultural practices associated with them, as is the case of the local Fuenlabrada chard.

The photo shows the mountainous area in the north of the region in the background, the city of Fuenlabrada nearby, and in the foreground one of the horticultural productions that make up the agricultural park. Among the chards, a strip of calendula flowers, can be seen, which is planted to attract beneficial insects for the orchard such as pest controllers or pollinating insects. In addition, these flower strips bring many other values, such as cultural and aesthetic values. Furthermore, by strengthening the multifunctional role of this activity and the restoration of the agricultural landscape, these areas are a space where it can be developed for environmental, sports and educational activities. These activities must be compatible with sustainable and local production, which will help to empower farmers who work there.

Will & Zac

England © Annabelle LePage, Natual England

Will is a hill farmer in the Yorkshire Dales. He has a commercial sheep and cattle enterprise based on hardy crossbreeds. He runs his upland farm alongside his brother, and their family have farmed in the valley for many years.

Will is also an active participant in the development of England’s innovative new agri-environment schemes. He was a member of the grassland results-based pilot, and is pictured here with sheepdog Zac in one of his best fields for breeding waders, in which he has seen around 70 curlews at once present in the spring.

In the background behind Will, Zac and their quad bike, we can see some of the excellent habitat qualities like the varied sward and plentiful tussocks which provide shelter for the birds. On the horizon, we can see the dramatic, rolling hills of the beautiful yet challenging Yorkshire Dales landscape in which these farmers provide so many benefits for natural and cultural heritage.

Will is an inspiring example of a hill farmer who is working well for both his own business, for the public, for other farmers and for nature.

Text: Jennifer Dodsworth

The Sunshine Island

Bornholm, Denmark © Louise Vercruysse (left) and Lisa Sharif (right)

One of contratcs2.0’s case study regions is the Danish Island of Bornholm. After the 2022 Consortium Meeting in Copenhagen a few colleagues visited this unique part of Europe. We spent a beautiful sunny day hiking along the coast, inspecting the landscape (we found an orchid!), watching birds, discussing our research, and even taking a dip in the clear cold sea.

The picture of the ocean, taken on an analogue camera by Louise Vercruysse, marks the start of our hike – the dinner plate full of exclusively local products the end of it.
It was a humbling full circle moment: to have spent the day walking through the region where farmers produce the foods on our plates and seeing the positive effects of their landscape management.

International research projects are no walk in the park (neither is hiking with Francis by the way), I learned that much very quickly. But today, it brought us here today, from all over Europe, brought us closer together as colleagues and friends. Let’s remember why it will be worth it: we are working on securing the possibility for future generations to take the same photographs as us on this day – of wonderful local food products, blooming landscapes, and clear water.

Text: Lisa Sharif, DBV

The Danish Jersey Cow

Bornholm, Denmark © Louise Vercruysse, INBO

We encountered these lovely cows during a day-long hike on the island of Bornholm – the Sunshine Island. It was late June, just after the Contracts meeting in Copenhagen, when some of the meeting attendees wanted to explore the natural surroundings where the Danish Contract Innovation Lab was situated, where sustainable grassland contracts were created.

Bornholm carries a fascinating history, as the island has been fought over for centuries. It used to be a Viking stronghold, and we saw some children on a school trip, dressed up as Vikings, as living remnants of that era. Bornholm belonged to Sweden for a while, before becoming Danish territory somewhere in the 17th century. During the second world war, the island was occupied by the Germans and bombed by the Russians. A lot of violence happened on the island. However, when walking the trails, one can only feel a strong sense of peace, being surrounded by the deep blue Baltic Sea and granite rocks. And this peace and joy is what we – humans anthropomorphizing everything – think to see in the faces of the cows we passed.

The Danish jersey cow, lounging in the shade with her new-born calf, seemed pleased. What must she think, overlooking the sea, likely never having touched the salty water? Does she see the humans walking the fields she’s grazing as belonging to a world separate from her, a culture opposed to a nature? Does she see her existence and the birth of her calf as being made possible by humans? Is she biodiversity, part of an environmentally friendly farming system, or quite the opposite, a burden?
Live and let live would be a part of the agriculture that Contracts2.0 aims to contribute to: co-designing contracts with practitioners to sustainably co-design farming systems with all human and non-human actors involved.

And so we continued our hike, finding ourselves a shady spot next to the water to take a rest.

We hope you enjoyed this small insight in our project and its regions and people!

We love them all, so we need you to GIVE YOUR VOTE to your favourite case study picture and story!
Knowing farmers’ motives helps to strategically address participation

Knowing farmers’ motives helps to strategically address participation

by | Oct 11, 2021 | Background, Results

What are the most important motives for farmers to participate in collective schemes? Researchers from Leibniz Centre of Agricultural Landscape Research (ZALF) collaborated with BoerenNatuur to ask people involved in the Dutch agricultural collectives about their perception.

Being in close contact with the farmers, the agricultural collectives play a key role in motivating farmers to participate in decision-making, knowledge and capacity building and carrying out measures. For successful landscape management with improvements for nature, it can be important to motivate the “right” farmers. For example, those who manage lands in focus areas or those who always lived in the region and have the best local knowledge. The expectations of the collectives on farmers’ motivations make a difference in the way they approach and recruit farmers.

 

Identifying Key Motives

In order to support the targeted approach in “pushing the right buttons”, researchers from ZALF (Germany) and BoerenNatuur (Netherlands) collaborated on a study to identify the most prominent aspects motivating farmers to enroll in Agri-environmental programs. While the relevant categories for different motivations (Figure 1) were identified via a literature review, their applicability was pre-tested in a workshop. After the relevance of the individual aspects of motivation was confirmed, the framework was the basis of a survey asking the people involved in the collectives to rank the different aspects according to their importance.

Figure 1: Categories of farmer motivations to participate in collective agri-environmental schemes (Barghusen et al. 2021).

Intrinsic Motivation is Equally Important

The results revealed that farmers can be motivated by thinking of costs and benefits from participation: that can be the payments directly, or indirect benefits like support from the dairy sector. But an economic motive is in most cases not the only explanation. Intrinsic motivations, such as personal awareness of nature and problems like biodiversity decline as well as a feeling of personal responsibility can be quite powerful. Respondents of the survey were convinced that these motivations play an equally important role.

Three other categories of motivation were analyzed: There is first the belief in the groups’ effort, that farmers working together can have a greater impact. There is also the aspect of having had long-term experience with working together of some of the agricultural collectives. They often share norms like commitment to nature. And then there is also the aspect of perceived peer pressure, when a farmer is motivated due to the wish to be seen as a good farmer by colleagues.

 

Understanding the Motives Better Helps to Increase Enrollment

We assume that these socially influenced motivations are essential in the collective system, although, in this survey, it remained rather unclear to what extent. Moreover, it may depend on the degree of interaction between actors. Practice, however, shows that many agricultural collectives already strategically engage in facilitating personal exchange and cohesion in the collectives, but also in connecting with local citizens or companies.

The question is whether all collectives are well aware and strategic about diverse motivation of farmers, especially the social dimension? Findings from the survey suggest, that collectives differ in awareness of their role in developing social capital. They could further engage in exchange among each other on how to address economic, personal, and at the same time also social ways in which farmers relate to biodiversity preservation.

For more information as well as details regarding the underlying data please check out the full article.

Written by Rena Barghusen (ZALF, DE)

Photo by Annemieke Dunnink (BoerenNatuur, NL)

Economic experiments for improving agricultural policy

Economic experiments for improving agricultural policy

by | Aug 25, 2021 | Background, Results

The EU’s Common Agricultural Policy (CAP) is constantly evolving. Its evaluation tools must develop concurrently. Including economic experiments in the toolset would be a valuable complement to capture farmers’ behavior and policy acceptance. Economic experiments are highly effective for policy evaluation. They allow testing new policies before implementation, provide evidence on their effects, and identify factors influencing policy outcomes. 

As part of the Research Network of Economics Experiments for CAP evaluation (REECAP), Contracts2.0-collegue Jens Rommel from the Swedish University of Agricultural Sciences contributed to a newly published article in the EuroChoices Journal. “Can Economic Experiments Contribute to a More Effective CAP?,” the authors ask. They examine experiments use in agricultural policy research and discuss their potential to help policy-makers understand farmer decision-making processes better.

 What are economic experiments?

Experiments are situations that allow for the study of decisions in controlled and reproducible environments. Like medical trials, where patients randomly receive medicine or a placebo, farmers are randomly assigned to different “treatments”. Treatments can, for example, simulate situations with and without CAP measures or include alternative measures’ designs. Comparing decisions in the treatments, researchers can isolate the causal impact of the policy and the relative performance of design alternatives.

 Advantages for policy evaluation

That way, experiments provide answers in a short amount of time and at much lower costs than, for example, trial and error in the “real world” would before the policy is implemented. As experiments are based on farmers’ preferences policy design and related incentives can flexibly be adjusted in advance. The use of control groups ensures to distinguish responses to different policy designs from policy effects and external factors.

Current agricultural policy simulators assume profit-maximizing behaviors only. Economic experiments often include cultural and other factors, which can generate profound insights into farmers’ complex decision-making processes.

Including economic experiments in the policy evaluation toolbox

Experimental approaches still need to find their place within the policy evaluation cycle. Collaborations between stakeholders involved in agricultural policy-making and research will be vital to ensure that economic experiments will find their place in the CAP evaluation toolbox to support a more effective CAP development.

For more information, see the original article: https://onlinelibrary.wiley.com/doi/full/10.1111/1746-692X.12324

Policy Innovation Labs – The new age of policymaking?

Policy Innovation Labs – The new age of policymaking?

by | Aug 11, 2021 | Background, Work progress

The development of innovative approaches to strengthen the provision of public goods is at the heart of Contracts2.0. The corresponding contractual solutions are co-designed by a diversity of stakeholders and practitioners in our regional Contract Innovation Labs (CIL).  To support the wider acceptance or the scaling up of these novel contracts, the Contracts2.0-Policy Innovation Labs (PIL) aim to lobby for the implementation of the innovative approaches into the respective policies on regional, national and EU-Level. The following article reveals how this is done in case of Contracts2.0 and what kind of general approaches are available to drive policy innovation.

The phrase “policy-making” can evoke a certain image in one’s mind. As something that is made by experts, technocrats and politicians, it is often associated with a rather hierarchical, strictly top-down process.

The remoteness of those who produce policies from those who will be affected by them is a major challenge for all levels of public policy — local, national and international.

So how does one bridge the gap between policy-makers and “policy-takers”, and make the process a bit less hierarchical? That’s where policy innovation comes in, as governments across the world try to experiment with the way in which policies are created, gradually moving away from the traditional ways of conjuring solutions behind closed ministerial doors. This novel approach to policy creation flips the entire process over, and the results have been quite promising.

 Types of policy innovation

The realm of policy innovation abounds in methods and tools that all seek to resolve the same policy problem in various ways. Although the list of such methods is indeed very long, some of them have been successfully applied in practice to generate new policy ideas:

Policy experimentation for developing and testing policies has gained traction in recent years with increasing support for Randomised Control Trials (RCTs) by organisations such as the World Bank, and various initiatives to improve public service delivery and institutional efficiency. Chances are, if you’ve recently read about a major policy breakthrough, especially in the developing world, its effectiveness was probably established through RCTs.

Although experimentation in policymaking is often conflated with ‘innovation’, out-of-the-box thinking and trying out new or different ideas, in essence, it is a systematic process requiring rigorous evidence collection/generation and evaluation. It allows policymakers to assess the impact of potential policies by employing techniques such as piloting and prototyping. This enables them to gauge the cost-effectiveness of policy interventions to see if they require adjustment or even termination before they are rolled out or scaled up.

Despite the potential benefits, governments are often reluctant to innovate or veer too far from the status quo, fearing loss of investment or policy failure. However, with experimentation and evidence, there is immense potential for learning from failure as well and examining what does not work at the same time as trying to figure out what does. That is the model at the heart of the UK Cabinet Office’s What Works Network that has been replicated, amongst others, in Canada, the US, Finland, Colombia and the UAE. The pilot Accelerator Labs at UNDP are also experimenting with local innovations to achieve the Sustainable Development Goals.

Behavioural insights provide an inductive approach to policymaking research, borrowing from economics, psychology and cognitive science, and are often used to create incentives and ‘nudge’ people to follow an established policy. The behavioural approach is underpinned by experimentation and use of evidence related to typical patterns of behaviour in a cost-benefit context. This approach enables policymakers to create the environments to induce public to make decisions working towards the desired outcomes without changing any costs or benefits that they are faced with. While this kind of policy design can have ethical issues, nevertheless, it can be a useful tool for more effective policies.

While experimentation and behaviour-inducing policies are driven by evidence, strategic foresight is applied in cases where the future policy context is unclear and can only be modelled through tools such as trend analysis, horizon scanning and scenario planning. This allows policymakers to map plausible “futures” and situations that could arise as well as the corresponding challenges and opportunities. The Covid-19 pandemic has reinforced the necessity for such anticipatory measures, and the need to prepare and innovate for crises. This approach enables policymakers to ‘stress-test’ existing or potential policies and systems to anticipate risks and evaluate whether they can sustain future shocks.

In contrast to the technocratic (or top-down) types of policy creation involving exclusively expert knowledge and political will, there are also approaches that attempts to come up with new policies in a less hierarchical and more bottom-up way. There are many variations within this approach, but the gist remains the same: policies are to be made together (or co-designed) with those whom they will affect. This goes far beyond a mere consultative function, since direct and meaningful involvement of all parties is key.

 Policy Innovation Labs (PIL)

One of such novel approaches to policymaking that uses co-design is the Policy Innovation Lab (PIL), which engages various stakeholders in an innovative co-creation of policies. Taking a holistic view of whatever problem is at hand, this approach brings together policymakers, scientists, community representatives and whoever is at least tangentially related to the particular context of the problem.

This multi-actor composition is designed to address the issues of ineffective policymaking and low levels of policy acceptance (i.e. popularity among those that it is designed to affect) by bringing stakeholder engagement to a new height and placing it at the heart of the policy formulation process.

The PIL-Approach in Contracts2.0

The PIL approach is also used in Contracts 2.0, an EU-funded project that aims to inform and improve policymaking with regards to the increased provision of environmental public goods in agriculture. In nine European countries (Hungary, Germany, France, Italy, Spain, Belgium, Netherlands, Denmark and United Kingdom) Contracts2.0 established Contract Innovation Labs (CILs), in order to co-design innovative contracts with regional farmers and other stakeholders. The resulting output of the CILs (“dream contracts”) is then fed into the Policy Innovation Labs (PILs). The PIls aim to facilitate the implementation of the novel approaches into the policy framework. They do so by taking a constant feedback from relevant stakeholders (e.g. regional/national policymakers, practitioners and public administrators, scientists, NGOs and associations) into account, to ensure that potential pitfalls are avoided.

The outlined mechanism of interactions within and between CILs and PILs represents an effective bottom-up approach to policymaking by placing stakeholder contributions at the most important stages of the policy cycle (e.g. agenda setting, policy formulation). The multi-stakeholder approach ensures that the different points of view are taking into account. The project framework envisages that the policy requirements formulated in the CILs and refined into policy recommendations by the PILs would be taken up or in some way implemented by policymakers, thus completing the policy cycle (from formulation to effectuation).

How to ensure success?

However, the mid-term evaluation of the Contracts 2.0 project and its PIL-approach identified some weak spots, which could prevent the PILs from exploiting their full potential. Some of the assessed PILs report problems regarding an active and consistent pattern of participation of relevant stakeholders in the PIL Workshops. Another risk to the success of the PILs is the potential intertia of administrative institutions and the clinging to the status quo. Features which stand in the way of a recognition let alone adoption of novel policies or recommendations.

While the PIL method is indeed well-designed and has the potential to generate great policy insights, it is important to motivate policymakers to commit to a more consistent support of the co-designing and the implementation of innovative policies. The success of this approach also depends very much on the personality of the involved stakeholders and policy makers, to go out of their way and try something new. The lab coordinators need to address this issue via a tailor-made flow of information and a well-structured discussion culture to facilitate the implementation.

A very important aspect of the PIL-approach in Contracts2.0 is the Cross-PIL-collaboration and integration of research (from the scientific work packages), which enables the exchange of experiences and knowledge across borders, setting off synergies and avoiding duplication of effort. This approach needs to be strengthened in the near future to help inform not only national policymaking but also support the development of a set of more holistic recommendations (e.g. #CAP-Refom) for the development of a conducive common framework while allowing enough flexibility for the individual Member states.

Perhaps in the future governments will rely more on this method of policy innovation, and establish their own autonomous Policy Labs (e.g. similar to that established in Northern Ireland). This way, the bottom-up approach would make its way to the top of national policy-making.

(Written by our guest authors: Ifrah Hassan & Daniel Borsos (School of Public Policy, Central European University)

Further Reading:

Experimentation: https://www.centreforpublicimpact.org/assets/documents/CPI-A-brief-intoduction-to-Policy-experimentation.pdf

Behavioural Insights: https://oecd-opsi.org/guide/behavioural-insights/

Northern Ireland’s government-backed Innovation lab: https://www.finance-ni.gov.uk/articles/evaluation-innovation-lab

“Food provision in the 21st century” – How Contracts2.0 contributes to the scientific discussion

“Food provision in the 21st century” – How Contracts2.0 contributes to the scientific discussion

by | Jul 27, 2021 | Background, Work progress, Workshops & Events

Food provision under ever more challenging environmental conditions might soon become a central subject for decision-makers worldwide. In June 2020, Contracts2.0 researchers participated in the European Association of Environmental and Resource Economists (EAERE) conference. The session “Food provision in the 21st century”, organized by Prof. Mordechai Shechter, brought together researchers from different disciplines examining how to feed the world’s growing population sustainably. In Contracts2.0, we research value chain approaches to support the transformation of the agricultural production system.

Food provision challenges

By 2050 the world’s population is projected to reach a staggering 10 billion people. To keep pace with the growing population’s demand for food, supply must grow by 56 percent by 2050. At the same time, the farming system needs to reduce its impact on the environment.1 Currently, half of the world’s food is produced in an unsustainable way, which in the medium term will further deteriorate natural systems’ productive capacity. Declining biodiversity, water overexploitation and pollution, and the loss of fertile soils are symptoms of the current agricultural practices. Therefore, it is a pressing question whether it is possible to provide enough food for a growing global population while maintaining environmental goals?2

Food gap

Figure 1. By 2050 global food production needs to increase by 56 percent. Source:

wri.org/sustfoodfuture

Scenarios and solutions

The session presented solutions that included the consumption side (e.g., diet changes, reduced food waste) and the production side (e.g., water use, fertilizer use, land management changes, irrigation). Prof. Dieter Gerten (Potsdam Institute for Climate Impact Research) showed scenarios under which on-farm water management can simultaneously boost crop yields and decrease water use. Dr. Claudia Ringler (International Food Policy Institute) emphasized the critical functions of groundwater and presented possible scenarios for its conservation. Yael Pantzer (Slow Food Europe) focused on access to good, clean, and fair food, also highlighting cultural and political aspects. International social justice plays a critical role, as the needs and objectives of low-income countries might differ substantially from those of European countries. She stressed that food security is not only about the production of sufficient amounts of food but also about its quality and accessibility.2

The presented scenarios and solutions show that it is possible to halt environmental deterioration from agricultural activities and maintain food security for a growing population. However, the question remains how mankind will make the necessary changes to deal with the many challenges. Notably, biodiversity loss and climate change are the most burning topics and call for immediate radical changes in food production and consumption. If we continued business as usual, we will soon transgress planetary boundaries.3

Contracts2.0 research on eco-labels

In Contracts2.0, our research supports the necessary transformation towards a more sustainable food system. One example of our work is creating collaborative models to include the value of agri-environmental public goods in product prices. Accomplishing this requires understanding consumers’ demand for environmentally-friendly practices in food production. In 2020 we carried out qualitative interviews with experts in the food industry to explore their preferences and expectations for labeling products for ecosystem services and biodiversity. Labels could signal to consumers the types of public goods produced by farmers, whose work and fields they usually cannot observe, potentially increasing their willingness to pay a price premium. The results, presenting the food industry’s views of product labeling for the effective and efficient provision of ecosystem services, will be published in a paper under the lead of Christoph Schulze.

Currently, we are conducting a study assessing consumers’ willingness to pay a price premium on grocery products labeled as produced by farmers who engaged in nature protection activities. So-called eco-labeling can help to increase the market share of environmentally friendly products, create bottom-up pressure, and incentivize food producers to change their practices. We will assess the demand for eco-labeled products and how they relate to organic products.

Achieving change

The research on industries’ and consumers’ demand for eco-labels is only a snap shot of all of our efforts in Contracts2.0. Together with stakeholders across Europe we develop agri-environmental contracts that fit regional contexts and objectives. With our research we make a small contribution to the sustainable transformation of the agricultural production system in Europe. However, to achieve lasting global change much effort is needed from all of us to reduce the growth in food demand, increase food production without expanding agricultural land, reduce emissions from agricultural production and protect and restore natural ecosystems.

To learn more about the innovative contract designs in Contracts2.0 follow these links:

  1. Limburg – Netherlands
  2. Groningen – Netherlands
  3. Koolstofboeren – Belgium
  4. Gulpdal – Belgium
  5. Northwest England – UK
  6. Hautes Pyrenees – France
  7. Madrid Region – Spain
  8. Bornholm – Denmark
  9. Agora Natura – Germany
  10. Hipp – Germany
  11. North Rhine Westphalia – Germany
  12. Örseg National Park – Hungary
  13. Unione Comuni Garfagnana – Italy
References:

1 Searchinger, T., Waite, R., Hanson, C., Ranganathan, J. (2019). Creating a sustainable food future. A menue of solutions to feed nearly 10 billion people by 2050. World Resources Institute, Washington DC.

2 Policy Session: Food provision in the 21st century, Organizer and Chair: Prof. Mordechai (Moti) Shechter

3 Gerten, D., Heck, V., Jägermeyr, J., Bodirsky, B. L., Fetzer, I., Jalava, M., … & Schellnhuber, H. J. (2020). Feeding ten billion people is possible within four terrestrial planetary boundaries. Nature Sustainability, 3(3), 200-208.

Written by Katarzyna Zagórska from the Faculty of Economic Sciences at the University of Warsaw. This note was taken based on presentations given during selected sessions at the 26th Annual Conference of the European Association of Environmental and Resource Economists, which took place online on June 23 – June 25, 2021. The conference was organised by Technische Universität Berlin (TU Berlin) and Humboldt-Universität zu Berlin (HU Berlin). More information and the full programme available at the conference website: http://www.eaere-conferences.org/

The future of German agriculture – A task for society as a whole

The future of German agriculture – A task for society as a whole

by | Jul 12, 2021 | Background

“German Commission on the Future of Agriculture” (“Zukunftskommission Landwirtschaft”) presented its final report to Chancellor Angela Merkel on July 6, 2021. Various stakeholders unanimously state their commitment to strengthen efforts of environmental and climate action and to improve animal welfare. The Commission stipulates that for the successful transition to a more sustainable agricultural production, economic viability is an indispensable prerequisite. Farmers can only provide environmental services if the farms can secure a sufficient income. Stakeholders also agreed that the transition is a task for the whole of society and that politics needs to provide a conducive policy environment to enable change.

 

Germany as a trailblazer for future-oriented thinking?

Germany already has developed standards that are considerably higher than the EU average regarding various sectors, particularly in the field of animal welfare: It is the world’s first country to ban the culling of male chicks (offspring of laying hens) by the end of 2021. This follows the ban on castrating piglets without anesthesia at the start of 2021. Almost in passing, a leading discounter recently announced that it would only sell meat that was produced in line with higher animal welfare standards by 2023. These new trends ask for quite significant adjustments in livestock keeping. Therefore, they raise the question, if the legal requirements (e.g. construction law, clean air act) will be adjusted to support the modifications needed for higher animal welfare and if there will be enough incentive for livestock farmers in Germany to make it happen.

A diverse committee acknowledging various interests

The final report of the Commission on the Future of Agriculture, a toughly negotiated agreement, runs in a similar vein and summarizes pragmatic concessions from different interest groups for the sake of the greater good. Thirty-one committee members representing agriculture, trade, animal welfare, consumer organizations, environmental protection and science, were asked to develop a shared vision, recommendations and guidelines for a sustainable and future-oriented German agriculture. Established in September 2020 by Chancellor Angela Merkel the committee met regulary. Ideas how to reduce external costs and to preserve nature for future generations while at the same time maintaining food security in Germany were exchanged. The report presents pathways for sustainable agricultural production systems that consider economic, ecological, and social objectives as well as animal welfare.

Transformation needs support from the society as a whole

Traditionally, perspectives on controversial topics, such as animal welfare standards and the economic compensation for farmers who carry out additional conservation practices, differ widely between agriculture and nature conservation. Considering the partially hardened positions of the two professions, it is commendable that the Commission on the future of agriculture reached a consensus under a constructively supporting chairmanship. Guiding principle and starting point for the committee’s work was the notion that environmental efforts must translate into economic success and societal recognition. Support of the whole society is necessary for a successful transformation. Putting responsibility only on farmers will not do the job. More likely, it will lead to the exhaustion of families and abandonment of farms.

Key outcomes

The 190-page document combining the diverse expertise of the committee members is worth a read. It features familiar ideas as well as progressive thinking.

Most significant outcomes from a farmer’s perspective are the following:

  • The German agri-food sector continues to walk the path towards a more sustainable future.
  • Agriculture alone cannot bear the massive cost necessary for the transformation process.
  • Both, companies and society need to invest in German agriculture.
  • Only sufficient income will secure the future viability of farms and motivate new agricultural practitioners.
  • A shift of agricultural production abroad (leakage effects) through unbalanced (and underfinanced) regulations needs to be prevented.
  • The Common Agricultural Policy (CAP) should be further developed and (together with national funding) support the transformation while securing the urgently needed planning and investment certainty for farmers.
  • New breeding techniques should be used to develop plant varieties adapted to challenges posed by climate change and pests.
  • Requirements for animal welfare should be (financially) supported to secure the perspective for high-quality livestock farming in Germany.
  • Research and innovation should provide the knowledge base for resource-, animal-, and climate-friendly practices.
  • Digitalization offers the potential to reduce the use of fertilizer and plant protection products through precision agriculture.
A Common Agricultural Policy

CAP support will play a key role in financing and managing the transition to a sustainable food system in Germany. Provided that farms can operate sufficiently competitive, CAP support has to enable farmers to contribute to additional ecological and social achievements. The uphill struggle in the course of the EU trialogue negotiations on the CAP 2023-2027 has shown how hardened positions of different interest groups can endanger the necessary financial support for farmers. At the end of June 2021 a compromise was reached, just in time to not fail the millions of European farmers relying on the CAP’s financial income support.

Cooperation is the key to success

In the long term, the “Zukunftskommission Landwirtschaft” suggests for Germany that area-based direct payments should be gradually converted into payments supporting specific measures to reach societal goals (such as clean water or sustaining biodiversity) within the next two CAP funding periods. The committee emphasizes that during the transition process, farmers should not suffer a net loss to their income. Furthermore, instead of regulation, cooperation should be fostered to motivate farmers to implement ecologically effective measures on their farms. To increase the effectiveness of agri-environment-climate measures (AECM) a collective implementation (e.g.  Dutch collective model) is specifically mentioned as being a promising solution due to its landscape scale approach. The report also emphasizes the necessity for consumers to accept fair prices for agricultural products. They should integrate the higher production costs, to maintain the profitability of agricultural enterprises.

A blueprint for a greener future?

Although not a legally binding document, policy makers will hardly be able to ignore the report. In the eyes of the committee members, the recommendations of the commission  should serve as a blueprint for policy innovation. The next German government is likely to be judged according to its efforts regarding the support of the transformation process. The recommendations have the potential to get politics moving and motivate society to live up to the commitment to make this ambitious vision come true.