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    Integration of Environmental Considerations at Different Levels of Decision Making 
    Annex A: Agriculture sector
    
    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 DAACs 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 Anglers 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
    sectors 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 Committees 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 committees
    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 
    
    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 
    
      
    (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 
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