Farmer Compensation and its Consequences for Environmental Benefit Provision in the Higher Level Stewardship Scheme

The Environmental Stewardship Scheme (ESS) provides payments to farmers for the provision of environmental services based on forgone agricultural income. Consequently, farmers with a relatively low opportunity cost of agricultural land will be particularly attracted to apply for entry into the ESS w...

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Veröffentlicht in:Journal of agricultural economics 2011-06, Vol.62 (2), p.330-339
Hauptverfasser: Quillérou, Emmanuelle, Fraser, Rob, Fraser, Iain
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container_title Journal of agricultural economics
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creator Quillérou, Emmanuelle
Fraser, Rob
Fraser, Iain
description The Environmental Stewardship Scheme (ESS) provides payments to farmers for the provision of environmental services based on forgone agricultural income. Consequently, farmers with a relatively low opportunity cost of agricultural land will be particularly attracted to apply for entry into the ESS within a given payment region. This article tests whether there exists a significant relationship between Higher Level Stewardship (HLS) Scheme entry and agricultural yields. Empirically, HLS participation is found to be negatively related to cereal yields at the farm level. This could be associated with ‘auspicious selection' of land into the Scheme, with greater ‘value for money' provided by the higher entry of land with lower agricultural forgone income but higher environmental benefit within the region.
doi_str_mv 10.1111/j.1477-9552.2011.00291.x
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source RePEc; Wiley Online Library Journals Frontfile Complete
subjects Agri-environment
agricultural income
agricultural land
Agricultural policy
Compensation
contract
Crops
D78
D82
ecosystem services
Environmental protection
Environmental Stewardship
farmers
Farming
H44
Humanities and Social Sciences
Income
Land use
opportunity costs
principal-agent
Q18
Q58
title Farmer Compensation and its Consequences for Environmental Benefit Provision in the Higher Level Stewardship Scheme
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