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/

Practitioners picture desirable farming landscapes for 2040 – Future Dream Contracts

Practitioners picture desirable farming landscapes for 2040 – Future Dream Contracts

by | Jul 22, 2021 | Results, Work progress

“How do agricultural practitioners envision desirable farming landscapes and ideal agri-environmental contracts?” In a detailed report, we collect and present answers to this question. We found that practitioners across Europe envision farming landscapes shaped by viable agricultural practices that strengthen and enhance ecosystem services. It is important that actors in the farming systems share the same values, cooperate and mutually recognise each other’s expertise to make the shared vision a reality. The social setting turned out the most critical change driver, followed by the legal and political framework and land use and environmental conditions. In this post, we share some of our key findings to illustrate what practitioners believe is necessary to unite the socio-economic viability of farming with the production of agri-environmental public goods in our farming landscapes.

Developing desired landscapes and dream contracts

To answer our initial question, we carried out 28 workshops and consultations in 13 Contract Innovation Labs (CILs) in nine countries across Europe, with a total of 354 participants over the past year. With farmers, environmental NGOs, nature associations, researchers, agricultural advisors and public administrations, we envisioned dream farming landscapes and ideal agri-environmental contracts to facilitate the sustainable transformation of the farming system (see Figure 1). This approach is based on the potential of positive future visions to stimulate sustainable change within the farming system in a participatory way.

 

Figure 1. Steps from dream contract development to implementation.

Based on key information provided by stakeholders from each CIL we analysed case-specific situations and problems using swot analysis. We then asked CIL participants to picture a desirable future dream landscape in the year 2040. We encouraged participants to prepare lists of enabling and limiting factors for realising the dream landscape. Finally, we asked them to envision agri-environmental contracts that would facilitate transformation toward the desired state. The participants reflected the contracts from different perspectives such as environmental effectiveness, socio-economic viability, duration and monitoring. Lastly, we developed dream contract trajectories – paths to reach the envisioned state.

Common dream landscape patterns

Based on short descriptions the CILs prepared of the dream landscape, we singled out 99 diverse dream landscape elements, which we clustered into eight landscape building blocks: viable and sustainable agriculture, regulating ecosystem services, social cohesion, biodiversity, multifunctionality, enabling landscape managers, health and wellbeing, and cultural ecosystem services. We ordered these building blocks into four almost-equally weighted categories: multifunctionality, agriculture-related topics, environmental-related topics and social context.

The category multifunctionality is relatively broad and refers to the simultaneous provision of different goods and services of the landscape or through agricultural activities. In the category of agriculture-related topics, the most common landscape element is viable and sustainable agriculture. Viable and sustainable agriculture should be profitable, provide opportunities for new generations of farmers, generate and process quality local produce, apply sustainable farming practices, use and produce renewable energy and optimise livestock production. The category of environmental-related topics includes the landscape elements regulating ecosystem services and biodiversity. Social context consists of the elements social cohesion, health and well-being and cultural ecosystem services. Social cohesion is an essential element indicating the importance of cooperation, shared values, the connection between communities and the landscape, and vibrant rural living (see Figure 2).

Figure 2. Representation of the dream farming landscape in CIL Oost-Gronningen. Several dream landscape patterns are illustrated.

Enabling and limiting drivers of change for the dream landscape

Change drivers are natural or human-induced factors that directly or indirectly trigger a change in an ecosystem. Direct drivers, such as habitat conversion and climate change, are pressures that directly affect ecosystem processed. Drivers that operate at a more diffuse level are indirect change drivers, such as socio-political, economic and technological factors.

In total, we identified 130 change drivers in our case studies that we assigned to five themes: social impact, legal policy and political context, land use and environmental impact, agro management viability and economic viability (see Figure 3). Across all cases enabling (N=62) and limiting (N=68) drivers are almost balanced. However, each case has a unique profile, which influences the likelihood of achieving the desired dream landscape. The most common them is social impact. It includes enabling drivers such as increased consumer demand, farmers’ intrinsic motivation and cooperation amongst farmers. The limiting drivers within this theme were a lack of trust and awareness.

 

 

Figure 3. Distribution of change drivers in five themes.

Unlike the three other themes, social impact as well as land use and environmental impact are described mainly by enabling drivers, meaning they are major building blocks for the dream farming landscapes. The limiting drivers are mostly related to economic viability (e.g., market fluctuations), the policy context (e.g., the uncertainty of current and future CAP developments) and agro management viability (e.g., uncertainty on the effects of farming practices) (Figure 4).

 

Figure 4. Limiting and enabling factors across themes.

Dream contracts for dream landscapes

Each CIL developed one or several dream contracts. These dream contracts are legal conduits to strike a balance between farmers’ or land managers’ economic interests and societies’ interests for the provision of environmental public goods and services. We analysed them for general characteristics, benefits, involved actors, payments and monitoring.

General contract characteristics include the targeted land use and contract length. Dream contracts targeted diverse land-use types such as grassland (N=12), arable crops (N=10) and permanent crops (N=7). Often, a contract combines several of these land-use types. The ideal contract length in most CILs ranges from five to ten years.

The dream contracts envision a wide range of benefits that go well beyond mere financial compensations for farmers (Figure 5). Overall, we identified 96 benefits that mostly help either society or farmers.

Figure 5. Envisioned dream contract benefits.

We split the financial benefits for farmers into indirect and direct monetary benefits. Direct monetary benefits include income support, cost savings and product added value.

All cases reported the involvement of one or more intermediary organisations. In eleven out of thirteen cases, a farmer group plays a crucial role to broker knowledge, manage payments, coordinate measures, carry out monitoring and build social cohesion.

In eight out of thirteen cases, funding is envisioned to come from the public sector, for example through agri-environment and climate schemes. Two cases aim for private funding and three cases envision a mix of private and public funding. Generally, we observe great interest for collective and results-based approaches, value-chain contracts and combinations thereof. Six out of thirteen cases like to experiment with combining contracts that include action-based and results-based features.

Almost all dream contracts envision that monitoring is carried out in results-based schemes and action-based schemes. We see a strong willingness from practitioners to be involved in monitoring.

Our results in the greater context

We do not claim that our results represent the whole farming community in Europe as they are entirely based on the perceptions of the participants in our 13 CILs, some of whom participated in several workshops. Furthermore, most participants are already engaged in contracts and are interested in reconciling farmer objectives with societal needs for agri-environmental public goods. Nevertheless, our results give interesting insights into practitioners’ perceptions about desirable changes in present agri-environmental contracts. Practitioners are keen to contribute to societal benefits, experiment with novel contract designs, and play a more active role in designing and monitoring agri-environmental contracts. These findings can support  the design of innovative Agri-environmental contracts and the corresonding policies and Strategic Plans within the New Delivery Model.

To learn more about our findings click HERE.

To learn more about each CIL’s dream landscape and dream contract 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

Written by Sven Defrijn (Boerennatuur Vlaanderen), Marina Garcia Llorente (Universidad Autónoma de Madrid), Edward Ott (Leibniz Centre for Agricultural Landscape Research), Photo Title: © Illiya Vjestica on Unsplash

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.

Contracts2.0 at the EAERE conference

Contracts2.0 at the EAERE conference

by | Jun 28, 2021 | Workshops & Events

Researchers from the Contracts2.0 project participated in the European Association of Environmental and Resource Economics Conference (EAERE), presenting the food industry’s preferences for environmentally-friendly practices in food production. The virtual congress took place in Berlin from 23–25 June 2021.

Contracts2.0 contributions to the conference

We presented work on developing value chain approaches for the increased provision of environmental public goods by farmers. Our work focused on the food industry’s preferences for product labelling for the provision of ecosystem services. We carried out qualitative interviews with experts in the food industry to explore different labelling options. Labels could signal to consumers the kinds of public goods farmers can provide and allow the industry to sell its products with a price premium. They would also add transparency to the purchasing process as consumers usually cannot observe farm work and fields. The study’s final results will be published later this year.

Further, Christoph Schulze introduced the Q-methodology approach, which he used to explore stakeholder preferences for agri-environmental contract design. Related to these findings, our latest Deliverable synthesises practitioners’ evaluations of innovative contract approaches and provides insight into ideal contracts.

Presentations given by Jens Rommel (SLU), Julian Sagebiel (SLU), Mikołaj Czajkowski (Universtiy of Warsaw), and Wiktor Budziński (University of Warsaw) focused on methodological aspects of stated preference methodology. We will use this methodology to inquire about farmers’ environmental preferences. In this line, early research results on the potential to introduce collaborative agri-environmental contracts are now available. Soon, we will launch an international study on farmers’ preferences for result-based contracts to protect biodiversity that we hope to present during the next EAERE conference!

Written by Katarzyna Zagórska (University of Warsaw) and Laszlo Beer (ZALF), Photo Title: ©Ingo Joseph on Pexels