Further development of eco-schemes (ÖR+)

Background and Objective

For the new funding period of the European Union´s Common Agricultural Policy (CAP) from 2023 to 2027, all EU member states had to develop a National Strategic Plan which covers Pillar 1 and Pillar 2. The eco-schemes are a new and central element of Pillar 1. Their objective is to financially reward farmers for using land management practices that contribute to climate and environmental protection. The design of the eco-schemes in Germany is specified in the CAP Direct Payments Act and the CAP Direct Payments Regulation.

The National Strategic Plan explains why certain funding measures are considered necessary. Besides, this plan describes the funding rates and outlines the expected implementation by farmers. Compared to the previous funding period, the federal government has received significantly new responsibilities that were previously held by the states. These responsibilities include the design, goal setting, control, implementation and evaluation of CAP measures.

It is very likely that the design of the eco-schemes will have to be adapted during the funding period, because:

• it is a new instrument,
• it is based on the voluntary participation of farmers,
• the CAP follows a performance-oriented approach, according which a predetermined budget must be utilized within a limited timeframe,
• the economic conditions on the agricultural and energy markets are constantly changing.

The “ÖR+” project aims to develop scientifically sound decision-making tools for the further development of eco-schemes. We investigate the uptake and budgetary impact of the eco-schemes and estimate their ecological and economic effects. In doing so, we also consider interactions with second pillar measures and conditionality.

Approach

At the Thünen-Institute, we establish data and methodological foundations for quantitative and qualitative analyses. These analyses provide important results for the ongoing planning, expansion, or restructuring of eco-schemes in Germany during the current funding period.

Data and Methods

We utilize various data and methods to meet the information requirements.

Our analyses will be based on the following data sources:

• Land use data (especially InVeKoS)
• Accounting data from the German farm accountancy data network of the Federal Ministry of Food and Agriculture (BMEL)
• Agricultural prices
• Planning data from the agricultural sector (e.g. KTBL)
• Operational data from “typical farms” within the agri benchmark-network

The following methods will be used:

• Geostatistical analyses
• Sector-wide farm analyses (using the farm group model “Farmis”)
• Gross margin calculations for selected typical farms

Our Research Questions

• What adoption rate can be expected for the different eco-schemes?
• What impact can be expected from the implemented eco-schemes?
• What adaption strategies do agricultural farms pursue in response to the availability of eco-schemes?
• How can results be scaled up to the entire agricultural sector?
• How would the uptake and impact of eco-schemes change depending on different funding rates?