Integration of Environmental Considerations at Different Levels of Decision Making

Annex A: Agriculture sector

A.1.1 Stakeholder analysis
A.1.2   Key environmental issues
A.1.3 Framework for market based decisionmaking
A.1.3.1   EU context
A.1.3.2 Danish context
A.1.4 Decision flow analysis

A.1.1 Stakeholder Analysis

The agriculture sector is the primary supplier of food and raw materials. The total agricultural area in Denmark covers approximately 2.8 million hectares and is the main use of land. The sector is highly diverse at the regional and local levels, in terms of the types of production systems and their products, and the size and structure of production units 1) .

At the macro level, the Danish Ministry of Agriculture is responsible for setting the policy framework and drawing up agricultural policies, principal among these being the implementation of the EU Common Agricultural Policy. The administration of the CAP is the responsibility of the Market Management and Intervention Board (EU-direktoratet), including distribution of payments under the CAP. Agri-environment schemes are drawn up by the Ministry, and commented on by an advisory committee comprising central, regional and local government representatives, farming organisations, land-owning associations, nature and recreation interests, and forestry interests.

At the meso level, the Municipalities are the environmental authority in relation to agriculture with responsibility for supervision of farms, of which just over half are livestock farms. The Counties are responsible for administering and negotiating contracts with farmers under agri-environment schemes. In relation to biodiversity issues, the Counties administer nature conservation legislation at the local level and manage a large number of protected areas. The Municipalities are fully involved in all planning processes.

The two main agricultural organisations at the meso level are the Danish Farmers’ Union and the Family Farmers’ Association, who between them represent around 95% of Danish farmers. These organisations have an influential role in shaping policy, negotiating directly with the Ministry of Agriculture. They also aim to support and influence the individual farmer: the Danish Agricultural Advisory Centre (DAAC) is owned and run jointly by the two main farmers’ organisations. The DAAC’s aims include the communication of knowledge and information, development of methods and tools, studies, education and training. Local centres provide specialist advice to farmers in all farming-related areas, for which farmers are charged about 90% of the cost. The DAAC is highly influential, providing about 80% of the major advisory, training and information services.

Non-governmental organisations also play a role in influencing policy. The Danish Society for the Conservation of Nature had considerable influence during the 1980s on the Action Plan on the Aquatic Environment, and the Danish Angler’s Federation has had a consistent and significant influence mainly regarding the condition of watercourses.

At the micro level, farmers and households are the principal players as producers and consumers of agricultural produce, although processors and retailers play a significant role in influencing agricultural markets and practices. For example, in the dairy sector, MD Foods dominates the market with an effective monopoly in the retail and distribution of all dairy products in Denmark. The majority of dairy farmers sell their milk solely to MD Foods and as such the company is in a position to exert a strong influence on the market, product standards, prices etc. The only other real outlet for independent farmers is Irma, which was the front runner in developing labelling in the 1970s and a leader in organics, quality foods and traditional produce.

Although the agriculture sector in Denmark only contributes 3.7% to GDP, the sector’s influence is far greater. This may be attributable to the fact that farmers hold many influential positions, for example in Municipal and County Councils, and that much of the Danish population has not too distant roots in the countryside.

A.1.2 Key Environmental Issues

Agriculture can have beneficial and harmful effects on the environment. The extent and causes of environmental impacts vary significantly across Europe largely due to differences in farming practices and local conditions. Some general trends are presented below and Table A1.1 sets out the relative importance of environmental problems related to agriculture in Denmark.
semi-natural landscapes and habitats which were shaped over centuries by traditional forms of extensive agriculture have undergone dramatic change in recent decades;
the intensification and specialisation of farming in more productive areas has led to larger field sizes, uniform landscapes and loss of hedgerows and other linear features;
the marginalisation of less viable farming areas has in some cases led to abandonment and scrub invasion, which often reverts to a state of poor biodiversity;
an increasing reliance on commercial fertilisers and pesticides, and greater mechanisation has affected soil fertility and erosion rates;
levels of soil contamination, air pollution in some areas has led to nutrient enrichment of surface and groundwaters; and
drainage and water abstraction for irrigation purposes lowers the water table and changes soil quality and fertility. In some places, this has led to loss of wetlands.

Table A 1.1
Relative Importance of Environmental Issues in Danish Agriculture

Environmental Issue Significance
Pollution, and environmental contamination caused by chemical inputs, high concentrations of livestock, and greenhouse gases Highly significant impact nationally
Loss of biodiversity and landscape quality caused by removal of landscape elements, reclamation, monoculture farming and intensification in general Highly significant impact nationally
Water shortage, soil compaction, soil erosion, and loss of wetlands caused by intensive arable farming, irrigation and drainage Historically, significant national impact
Loss of biodiversity and landscape quality due to marginalisation and abandonment of agriculture Significant impact in some areas
Source: Primdahl (1999), Environmental Aspects of Agenda 2000, Danish Nature Council, in Conference Proceedings ‘Agriculture and the Environment’ University of Warwick April 1999

In Denmark two key environmental issues that have been identified by central government 2) are:
The need to protect groundwater resources: The quality of groundwater is affected by pesticides and leached nutrients from agriculture. Predominantly sandy soils and the Atlantic climate contribute to a high risk of leaching due to a relatively high nitrogen surplus. Pesticides residues have been found in groundwater in most areas of Denmark and leaching of fertilisers is also polluting groundwater resources. This is of key significance in Denmark as 99% of the water supply is taken from groundwater sources, and its quality is therefore of great significance to the health of the nation. As a result, all of Denmark is designated a nitrate vulnerable zone. In addition, recent incidents of marine eutrophication have emphasised the problem of nitrate leaching from agricultural land.
the need to conserve areas for diversity of species and to bring areas back into their natural state, especially wetlands.

The Common Agricultural Policy (CAP) is the key driver of agricultural policy in the European Union. It has had a powerful influence on the nature and type of farming practised in the EU today. The enormous budgetary pressure which CAP places on the EU, and the incentives it has created for environmentally damaging agriculture are now widely recognised. The CAP was initially reformed in 1992 to incorporate provisions for environmental protection schemes, and these have been developed further in the Agenda 2000 reform of the CAP adopted in May 1999, although their role in influencing agricultural practices is still minor.

In addition, public concerns, primarily about food safety but also about intensive production methods and animal welfare, are creating consumer-led incentives for the adoption of organic and low-input farming. However, the cost of transition to organic production is high, particularly as it is several years before produce can be sold as organic, and therefore financial support to assist farmers in the transition to organic production is important. Financial subsidies for organic production also ensure that retail prices of organic produce can be competitive with conventional produce as the market develops.

For the decision analysis described in Section A1.4, we have taken as examples two of the key environmental issues for the agricultural sector:

Water quality
Biodiversity

A.1.3 Framework for Market Based Decision Making

A.1.3.1 EU Context

The Common Agricultural Policy subsidises European farming on a large scale and sets the overall framework within which product and consumption decisions are set. The key changes in agricultural policy are:
The 1992 CAP Reform, based on the MacSharry proposals, aimed to reduce over-production and budgetary pressures by introducing set-aside and direct compensation payments for farmers rather than price support measures. Accompanying measures were introduced including the Agri-environment Regulation (2078/92/EEC); and
The Agenda 2000 reform of the CAP, agreed in May 1999, continued this shift away from price support and towards direct payments to farmers and will place greater emphasis than before on agri-environment measures and other forms of support within the new Rural Development Regulation.

A number of other regulatory measures contribute to the integration of environmental actions related to biodiversity and water quality in the agricultural sector. These are outlined below:
The Nitrates Directive which requires Member States to designate Nitrate Vulnerable Zones and to develop and disseminate codes of good agricultural practice in those areas. A recent assessment by DG Environment of the European Commission shows a high overall level of compliance with the Directive, but with some Member States taking a more active role in disseminating good farming practices to farmers and dealing with wider issues than simply nitrates management.
The Habitats and Birds Directives which protects areas designated on the basis of their high conservation value;
Extensive legislation for pesticides in relation to their registration, use, and allowable levels of residue in treated agricultural products and the environment.
Regulation (EEC) No 2092/91 sets up a harmonised framework for the labelling, production and control of agricultural products bearing or intended to bear indications referring to organic production methods. The regulation lays down minimum standards which must be complied with for the produce to be legitimately labelled as organic.
A comprehensive set of legislation relating to the conservation and sustainable utilisation of plant genetic resources for food and agriculture. The legislation relates to phyto-sanitary protection, marketing of seed and plant propagating material and Community plant variety rights.

A.1.3.2 Danish Context

The action plans developed in the 1980s have contributed to a reduction of the negative impacts of agriculture on the aquatic environment and nature, but improvements are still needed. A number of recent policy initiatives have created a long-term basis for the improvement of groundwater quality in Denmark, including the Aquatic Environment Plan II, the results of the Bichel Committee’s work and the Act on Contaminated Soil. Efforts are concentrated on further reducing the use of pesticides and fertiliser, as well as the spreading of sludge containing heavy metals etc.

A national action plan on biological diversity and nature protection will also be developed, with the existing action plans and strategies as the basis. It is intended that the plan will promote the development of networks of interconnected protected areas, and help to ensure that biological diversity is respected by sectors including agriculture. The government will promote local practice which meets special protection requirements in particularly sensitive agricultural areas, nitrate-sensitive water catchment areas and in riparian zones along aquatic environments.

The Aquatic Environment Plan II adopted in 1998 aims to achieve the target 50% reduction in discharges of nitrogen from agriculture through reduced application to fields and better exploitation of the applied fertiliser. It also aims to promote environmentally beneficial agricultural practices and to establish more forests and wetlands to protect groundwater sources and flora and fauna.

In relation to pesticides, a tax has been imposed and, since 1994 220 pesticides have been removed from the market. Although the use of pesticides has decreased in terms of the quantity of active substances applied, the frequency of application has not significantly decreased. The Bichel committee concluded that phase-out was not practically feasible but that pesticide use could be cut significantly. Following the committee’s recommendations, a draft plan has recently been produced by the government on reducing the use of pesticides. This aim is to achieve a general reduction in the use of pesticides on treated areas, a reduction in the exposure of endangered areas and an increase in the area farmed organically, thereby reducing use by a fifth by 2002. The draft plan will cut spraying frequency, create ten metre wide no-spray zones around all significant water courses and triple the area of organic farmland, taking the overall share of organic agriculture in Denmark to 10%.

Since the beginning of 1996, the County Councils have assumed responsibility for administering and negotiating contracts under agri-environment schemes with farmers. The agri-environment schemes are drawn up by the Ministry of Agriculture, in consultation with an advisory committee comprising central, regional and local government representatives, farming organisations, land-owning associations, nature and recreation interests, and forestry interests, to comment on the plans. The schemes are then submitted by the Ministry to the Commission. Commission approval for the County Councils' New Environment Support Programme was given in February of this year. The following measures are eligible for payments:
upkeep of permanent grasslands;
promotion of public access;
increase in water levels in lowland areas;
maintenance of the countryside and landscape; and
long-term set aside.

The Danish Government is also currently preparing a major revision to the contents of the national programme. The changes will focus on promoting measures addressing specific local issues developed through negotiations between County Councils and the farmers. It is anticipated that the measures will extend beyond groundwater protection to enhancement of landscapes and nature value.

A.1.4 Decision Flow Analysis

Decision flow analyses for the agriculture sector, for households, farmers and municipalities in relation the issues of water quality and biodiversity are presented in Tables 1.2-1.4. The analyses highlight that farmers are the most significant decision-makers in influencing both water quality and biodiversity, more so than either households or municipalities, although both of these others can have an important role.

It emerged that recurring parameters in the decisions made by farmers were:
profitability and financial risk;
awareness of environmental impacts and perception of their significance.

There are a range of tools used by various actors to affect these parameters, although with limited effect to date. For example, financial support schemes to make agri-environment measures more viable and attractive to farmers are implemented across the European Union, although for many farmers the balance of financial incentives does not favour the take-up of these schemes. Information and advice for farmers on environmentally-friendly farming techniques is also provided across the EU by a variety of organisations, and in Denmark a particularly effective scheme for advising farmers is in operation (the Danish Agricultural Advisory Council), and interesting examples exist in most other EU member states. However, many farmers still remain to be convinced of the significance of the impacts of their activities.

These parameters are also significant framework conditions for successful operation of the policy tools, and therefore it may be important not only to investigate where there are gaps in the use of tools but also to revisit the parameters where tools already exist to see how they may be made more effective or influential.

Table A1.2
Households

Parameters Tools / Mechanisms Examples
Which product shall I buy?    
Quality Eco-labelling
organic labelling

Product information
quality marks
labelling on production methods (eg traditional)

 
Price Financial grants/subsidies
schemes to promote/support organic farming
agri-environment schemes

Taxes and charges
pesticide/fertiliser taxes
abstraction charges

Industry collaboration
farmers’ networks/co-operative schemes to reduce costs

 
Perceived attributes of product Education and awareness raising
information/publicity on health risks/benefits
information/publicity on environmental impacts
 
Availability of alternatives Retailer policies
policy on product ranges

Marketing
farmers markets
organic ‘box’ schemes

 

Table A1.3 Farmers and Biodiversity

Parameters Tools / Mechanisms Examples
Should agro-chemicals be used?  
Type of crop/produce/activity and possibilities for substitution Advice
information on fertility requirements of crops/produce/activities
information on management of soil fertility

R&D
knowledge of crop-pest interaction/resistance
development of pest-resistant crops

Financial incentives
agri-environment schemes

Industry Collaboration
farmers’ networks for shared ownership/ use of specialised equipment

Denmark: grants for land taken out of agricultural production
Profitability of crop/produce/activity Financial incentives
agri-environment subsidies

Marketing
promotion of organic produce

Greece: grants to promote pesticide-free cultivation of cereals and grain

Switzerland: grants for farmers not farming intensively adjacent to wetlands

Awareness of alternatives Education/ advice
information/advice services on integrated crop/pest management
Denmark: Agricultural Advisory Centre recommending conversation to alternatives
Type of farming (eg organic, extensive, integrated crop management, rotation) Financial incentives
agri-environment schemes
organic conversion assistance
preferential loans

Advice
information/advice services on farm management and methods

Denmark: grants for organic production

UK: financial assistance for conversion to organic farming

Switzerland: grants for farmers not farming intensively adjacent to wetlands

Perception of risk (financial, market strength/reliability) Financial incentives
availability of farm insurance
availability of government support/price guarantees
preferential loans

Industry Collaboration
producer organisation/co-operatives for joint marketing/distribution

Marketing
producer organisations/co-operatives
organic certification
quality labelling

 
Location (eg distance from water courses) Guidance
codes of practice on application of manure
EU: Member State codes of practice to implement Nitrates Directive
Awareness of environmental impacts Education/advice
information on environmental impacts of agrochemical use

Environmental management systems
EMAS/ISO/farm audits

 
Perception of significance of environmental impacts Education/advice
information on environmental and health impacts of agrochemical use
 
Regulations Regulation
regulations governing use of pesticides
 
Which agrochemical?    
Type of farming (eg organic, mixed, extensive), allowing use of organic fertilisers Financial incentives
agri-environment schemes
conversion assistance
preferential loans

Advice
information/advice services on farm management methods

 
Cost versus effect on yield/profitability Financial incentives
fertiliser/pesticide taxes
agri-environment schemes

Marketing
premium price for organic products

UK: grants to compensate for changes required to protect nitrate sensitive areas and drinking water sources

Finland: fixed for pesticide market entrance, plus 35% of price (excl. VAT)

Perception of risk (financial, markets) Financial incentives
availability of farm insurance
availability of government support/price guarantees

Industry Collaboration
producer organisation/co-operatives for joint marketing/distribution

Marketing
organic certification
quality labelling
promotion of organic produce

 
Requirements of crop/produce Advice
information on fertility requirements of crops/produce/activity

R&D
development of new crop strains
development of new pesticides

 
Convenience (eg is animal manure available on farm, ie mixed/integrated farming?) Advice
promotion of mixed farming/integrated crop management
 
Availability Regulation/standards
restriction/ban on use of certain types of agrochemicals
government/industry agreements on content

R&D
development of new pesticides

Sweden: targets for limits on toxic substances in digested sludge

Belgium: agreement between government and fertiliser companies to limit cadmium in fertilisers

Awareness of environmental effects Advice/education
information on environmental/health effects of agrochemicals

Environmental management systems
EMAS/ISO/farm audits

Product information
product labelling/information

 
Perception of significance of environmental effects Education/advice
information on environmental/health effects of agrochemical use
 
How will agrochemical be used?  
Awareness of environmental impacts Education
information/education on use and impacts of agrochemicals

Product information
product labelling, product information

Environmental management systems
EMAS/ISO/farm audits

UK: farm visits to advise/train on pesticide management, by Farming and Wildlife Advisory Group
Perception of significance of environmental effects Education/advice
information on environmental/health effects of agrochemical use
 
Location (eg distance from water courses) Regulation
regulations governing application

Guidance
codes of practice on application

 
Local conditions (eg slope, rainfall, timing) Guidance
codes of practice on application (timing and quantities)

Regulations
regulations on use of agrochemicals

UK: local environmental risk assessment procedures for guidance on pesticide application
Characteristics of agrochemical product Product information
product labelling/information on use of product
 
Cost versus impact on yields/profitability Financial incentives
fertiliser/pesticide taxes
agri-environment subsidies
Finland: fixed fee for pesticide market entrance, plus 35% of price (excl. VAT)
Perception of risk Financial incentives
availability of farm insurance
availability of government support/price guarantees
 
Regulation Regulation/standards
regulations on pesticide residues in produce
 
How will unused agrochemicals be disposed of?  
Awareness of environmental effects Guidance
codes of practice on disposal
information on regulatory requirements

Education
information/education on environmental impacts of agrochemicals

Product information
Product labelling/information giving guidance on disposal

Environmental management systems
EMAS/ISO/farm audits

 
Available and convenient facilities Infrastructure provision
provision of adequate and convenient facilities and services
UK: National Pesticide Retrieval Scheme, run by British Agrochemical Association - fee charged to farmers per kg of pesticide
Regulation Regulation
regulations on disposal of agrochemicals
 
Cost of disposal Financial incentives
charges for waste disposal
taxes on waste disposal
 
How will livestock be managed (extensively or intensively)?  
Productivity Advice
information on increasing productivity of extensive farming
 
Profitability Financial incentives
agri-environment schemes

Advice
information/advice on profitable management

Switzerland: subsidy for extensive agricultural acreage
Perception of risk Financial incentives
availability of farm insurance
availability of government support/price guarantees

Marketing
promotion/marketing of quality products
quality labelling of produce

 
Awareness of environmental effects Education
information/education on environmental impacts of intensive farming
 
Regulation Planning
EIA of intensive livestock units
planning restrictions on type of farming activity
EU: EIA required by EU directive
How will livestock waste be managed?  
Awareness of environmental impacts Guidance
codes of practice on farm waste management

Advice/education
information/education on environmental impacts of animal waste

Environmental management systems
EMAS/ISO/farm audits

 
Perception of significance of environmental effects Education/advice
information on environmental impacts of animal waste
 
Regulation Regulation
regulations on handling and disposal of waste
 
Standard of farm facilities Regulation
regulations on minimum standards for on-farm waste handling facilities

Financial incentives
grants and other financial support for improvement of on-farm waste handling facilities

Greece: partial compensation for installation of waste facilities for protection of water quality
Availability of disposal routes Regulation
regulations on spreading of manure

Guidance
codes of practice on spreading of animal waste

Education/advice
information/education/advice on environmental impacts of animal waste

Infrastructure provision
provision of disposal facilities

 
Cost of disposal Financial incentives
taxes on waste disposal
charges for waste disposal
 
 
Will crop be irrigated?    
Availability of water resources Planning
SEA of water resource management plans
EIA of water management schemes
catchment management planning

Regulation
abstraction permits
regulations governing abstraction/use

EU: EIA required by EU directive for water management schemes
Choice of crop and possibilities for substitution R&D/advice
information/advice on water requirements for certain crops/low-water crops
 
Cost of water versus impact on productivity Economic incentives
full-cost pricing of water
France: charge for water use to be introduced in 2000.
Risk Economic instruments
availability of farm insurance against low yields
 
Weather    
Which method of irrigation?    
Knowledge/awareness of options Education
information/advice/help on low-use systems
 
Awareness of environmental impacts Education/advice
information on environmental impacts of water resource use
 
Installation costs Financial incentives
subsidies/grants for equipment and infrastructure installation
 
Operating costs Financial incentives
full-cost pricing of water
 
Quantity of available water resource Planning
SEA of water resource management plans
EIA of water management schemes
catchment management planning

Regulation
abstraction permits
regulations governing abstraction/use

EU: EIA required by EU directive
Choice of practices and methods  
Knowledge of methods Education
information on beneficial practices
UK: Farming and Wildlife Advisory Group is a network of farmers and conservationists which gives advice on practices of benefit to wildlife without compromising productivity or economic performance
Awareness of environmental effects Education/advice
information on effects of damaging practices and methods

Environmental management systems
EMAS/ISO/farm audits

 
Perception of significance of environmental effects Education/advice
information on environmental impacts of practices
 
Effect on profitability Financial incentives
agri-environment schemes
organic conversion assistance
less-favoured area payments
preferential loans

Advice
information/advice on profitable management

 
Regulation Regulation/standards
regulations on required or prohibited practices within protected areas
designated areas
EU: Natura 2000, Special Protection Areas
Retention, protection or reinstatement of features (eg hedges, ponds, wetlands)  
Knowledge Education
information on management of features
 
Awareness of environmental effects Education/advice
information on environmental benefits or harmful effects
 
Perception of significance of environmental effects Education/advice
information on importance of features for biodiversity
 
Effect on profitability Financial incentives
agri-environment schemes
organic conversion assistance
preferential loans

Advice
information/advice on profitable management

Sweden: compensation for farmers for additional cost of protection of biodiversity, habitats, landscape, cultural heritage

Norway: grant for agricultural landscape protection

Regulation Regulation/standards
regulations on protected features
designated areas
 
Choice of crop/produce    
Knowledge of alternatives Education/advice
information about alternative activities/breeds/varieties
 
Profitability/market security Financial incentives
agri-environment schemes
less-favoured area payments
charges for environmentally damaging activities

Industry Collaboration
Producer organisations/co-operatives for joint marketing/distribution

Marketing
quality labelling
GMO labelling

Sweden: licence fee for exploitation of peat
Perception of value/significance Education/advice
information on significance for biodiversity
 

Table 1.3 Farmers and Water Quality

Parameters Tools / Mechanisms Examples
Should agro-chemicals be used?    
Type of crop/produce/activity and possibilities for substitution Advice
information on fertility requirements of crops/produce/activities
information on management of soil fertility

R&D
knowledge of crop-pest interaction/resistance
development of pest-resistant crops

Financial incentives
agri-environment schemes

Industry Collaboration
farmers’ networks for shared ownership/ use of specialised equipment

Denmark: grants for land taken out of agricultural production
Profitability of crop/produce/activity Financial incentives
agri-environment subsidies

Marketing
promotion of organic produce

Greece: grants to promote pesticide-free cultivation of cereals and grain

Switzerland: grants for farmers not farming intensively adjacent to wetlands

Awareness of alternatives Education/ advice
information/advice services on integrated crop/pest management
Denmark: Agricultural Advisory Centre recommending conversation to alternatives
Type of farming (eg organic, extensive, integrated crop management, rotation) Financial incentives
agri-environment schemes
organic conversion assistance
preferential loans

Advice
information/advice services on farm management and methods

Denmark: grants for organic production

UK: financial assistance for conversion to organic farming

Switzerland: grants for farmers not farming intensively adjacent to wetlands

Perception of risk (financial, market strength/reliability) Financial incentives
availability of farm insurance
availability of government support/price guarantees
preferential loans

Industry Collaboration
producer organisation/co-operatives for joint marketing/distribution

Marketing
producer organisations/co-operatives
organic certification
quality labelling

 
Location (eg distance from water courses) Guidance
codes of practice on application of manure
EU: Member State codes of practice to implement Nitrates Directive
Awareness of environmental impacts Education/advice
information on environmental impacts of agrochemical use

Environmental management systems
EMAS/ISO/farm audits

 
Perception of significance of environmental impacts Education/advice
information on environmental and health impacts of agrochemical use
 
Regulations Regulation
regulations governing use of pesticides
 
Which agrochemical?    
Type of farming (eg organic, mixed, extensive), allowing use of organic fertilisers Financial incentives
agri-environment schemes
conversion assistance
preferential loans

Advice
information/advice services on farm management methods

 
Cost versus effect on yield/profitability Financial incentives
fertiliser/pesticide taxes
agri-environment schemes

Marketing
premium price for organic products

UK: grants to compensate for changes required to protect nitrate sensitive areas and drinking water sources

Finland: fixed for pesticide market entrance, plus 35% of price (excl. VAT)

Perception of risk (financial, markets) Financial incentives
availability of farm insurance
availability of government support/price guarantees

Industry Collaboration
producer organisation/co-operatives for joint marketing/distribution

Marketing
organic certification
quality labelling
promotion of organic produce

 
Requirements of crop/produce Advice
information on fertility requirements of crops/produce/activity

R&D
development of new crop strains
development of new pesticides

 
Convenience (eg is animal manure available on farm, ie mixed/integrated farming?) Advice
promotion of mixed farming/integrated crop management
 
Availability Regulation/standards
restriction/ban on use of certain types of agrochemicals
government/industry agreements on content

R&D
development of new pesticides

Sweden: targets for limits on toxic substances in digested sludge

Belgium: agreement between government and fertiliser companies to limit cadmium in fertilisers

Awareness of environmental effects Advice/education
information on environmental/health effects of agrochemicals

Environmental management systems
EMAS/ISO/farm audits

Product information
product labelling/information

 
Perception of significance of environmental effects Education/advice
information on environmental/health effects of agrochemical use
 
How will agrochemical be used?  
Awareness of environmental impacts Education
information/education on use and impacts of agrochemicals

Product information
product labelling, product information

Environmental management systems
EMAS/ISO/farm audits

UK: farm visits to advise/train on pesticide management, by Farming and Wildlife Advisory Group
Perception of significance of environmental effects Education/advice
information on environmental/health effects of agrochemical use
 
Location (eg distance from water courses) Regulation
regulations governing application

Guidance
codes of practice on application

 
Local conditions (eg slope, rainfall, timing) Guidance
codes of practice on application (timing and quantities)

Regulations
regulations on use of agrochemicals

UK: local environmental risk assessment procedures for guidance on pesticide application
Characteristics of agrochemical product Product information
product labelling/information on use of product
 
Cost versus impact on yields/profitability Financial incentives
fertiliser/pesticide taxes
agri-environment subsidies
Finland: fixed fee for pesticide market entrance, plus 35% of price (excl. VAT)
Perception of risk Financial incentives
availability of farm insurance
availability of government support/price guarantees
 
Regulation Regulation/standards
regulations on pesticide residues in produce
 
How will unused agrochemicals be disposed of?  
Awareness of environmental effects Guidance
codes of practice on disposal
information on regulatory requirements

Education
information/education on environmental impacts of agrochemicals

Product information
Product labelling/information giving guidance on disposal

Environmental management systems
EMAS/ISO/farm audits

 
Available and convenient facilities Infrastructure provision
provision of adequate and convenient facilities and services
UK: National Pesticide Retrieval Scheme, run by British Agrochemical Association - fee charged to farmers per kg of pesticide
Regulation Regulation
regulations on disposal of agrochemicals
 
Cost of disposal Financial incentives
charges for waste disposal
taxes on waste disposal
 
How will livestock be managed (extensively or intensively)?  
Productivity Advice
information on increasing productivity of extensive farming
 
Profitability Financial incentives
agri-environment schemes

Advice
information/advice on profitable management

Switzerland: subsidy for extensive agricultural acreage
Perception of risk Financial incentives
availability of farm insurance
availability of government support/price guarantees

Marketing
promotion/marketing of quality products
quality labelling of produce

 
Awareness of environmental effects Education
information/education on environmental impacts of intensive farming
 
Regulation Planning
EIA of intensive livestock units
planning restrictions on type of farming activity
EU: EIA required by EU directive
How will livestock waste be managed?  
Awareness of environmental impacts Guidance
codes of practice on farm waste management

Advice/education
information/education on environmental impacts of animal waste

Environmental management systems
EMAS/ISO/farm audits

 
Perception of significance of environmental effects Education/advice
information on environmental impacts of animal waste
 
Regulation Regulation
regulations on handling and disposal of waste
 
Standard of farm facilities Regulation
regulations on minimum standards for on-farm waste handling facilities

Financial incentives
grants and other financial support for improvement of on-farm waste handling facilities

Greece: partial compensation for installation of waste facilities for protection of water quality
Availability of disposal routes Regulation
regulations on spreading of manure

Guidance
codes of practice on spreading of animal waste

Education/advice
information/education/advice on environmental impacts of animal waste

Infrastructure provision
provision of disposal facilities

 
Cost of disposal Financial incentives
taxes on waste disposal
charges for waste disposal
 
 
Will crop be irrigated?    
Availability of water resources Planning
SEA of water resource management plans
EIA of water management schemes
catchment management planning

Regulation
abstraction permits
regulations governing abstraction/use

EU: EIA required by EU directive for water management schemes
Choice of crop and possibilities for substitution R&D/advice
information/advice on water requirements for certain crops/low-water crops
 
Cost of water versus impact on productivity Economic incentives
full-cost pricing of water
France: charge for water use to be introduced in 2000.
Risk Economic instruments
availability of farm insurance against low yields
 
Weather    
Which method of irrigation?    
Knowledge/awareness of options Education
information/advice/help on low-use systems
 
Awareness of environmental impacts Education/advice
information on environmental impacts of water resource use
 
Installation costs Financial incentives
subsidies/grants for equipment and infrastructure installation
 
Operating costs Financial incentives
full-cost pricing of water
 
Quantity of available water resource Planning
SEA of water resource management plans
EIA of water management schemes
catchment management planning

Regulation
abstraction permits
regulations governing abstraction/use

EU: EIA required by EU directive

Table A1.4 Municipalities as Regulators

Parameters Tools / Mechanisms Examples
Rural development policy choices    
Regional environmental quality (assets/hotspots) Planning
environmental assessment
 
Regional potential/priorities for rural economic activity Widening involvement
stakeholder consultation processes, including public participation
Planning
SEA
catchment management planning
 
Regional environmental priorities Planning
water quality targets
local Biodiversity Action Plans

Widening involvement
stakeholder consultation processes, including public participation

 
National/European policy priorities Planning
SEA

Best practice
integrated rural development policy
diversification of rural economy

Regulation/standards
water quality targets
landscape/nature conservation designations

 
Availability of financial resources Financial incentives
agri-environment schemes
organic conversion assistance
regional development funding
less-favoured area payments
Denmark: grants for organic production

UK: financial assistance for conversion to organic farming

Switzerland: grants for farmers not farming intensively adjacent to wetlands

Availability of financial resources Financial instruments
agri-environment schemes
hypothecation of funds from charges/fees/fines
 
Policy instruments Planning
land-use planning policy
catchment management planning
planning permission
local/national Biodiversity Action Plans

Regulation/standards
local water quality targets
site designations

Monitoring
indicators of environmental quality/impacts/drivers

 
Availability of staff resources/expertise Training
training/recruitment of staff with required skills/knowledge/expertise
 
Raising awareness of farmers Advice
farm business support schemes
information/advice to farmers on regulations
information on agri-environment schemes
advice/support on environmental management systems
 
Regulation of agricultural activities    
Regulation Regulation
nature conservation designation
nitrate-sensitive area designation
abstraction licensing
licensing of activities
permission/licensing of drainage works

Planning
land-use plans

 
Raising awareness of farmers Education and awareness-raising
information to farmers on regulatory requirements and their legal obligations
codes of practice
 
Local conditions Monitoring
assessment of local water quality
 
Availability of resources Financial instruments
hypothecation of funds from charges/fees/fines

Training
training/recruitment of staff with required skills/knowledge/expertise

 

 

(1) Cereal production accounts for just over half of this, with other important crops being oilseed rape, sugar beet, potatoes and grass seed. Much of the land is also given over to pasture, and just over half of farms are livestock farms

(2) Personal communication, September 1996