The second round of our online Policy Delphi study – focusing on opportunities to implement innovative contract models in the current policy arena – was closed during the summer, and the first results are just fresh out of the oven.

A key characteristic of the Delphi method is that it runs in several consecutive rounds. This allows the researchers to use the findings from the preceding rounds to design questions in the forthcoming rounds. This allows to dig a little deeper into the most exciting (often controversial) topics, which is exactly what happened in Contracts2.0. The results of our first Delphi round were analysed to identify converging and contested topics, which were then turned into questions and statements to test in the second round of the survey. 32 experts from 15 European countries participated in the second round, with almost half of them indicated to have direct policy experience at national or subnational level.

Based on the answers from the first round on how the ideal contract would look like to incentivize farmers for more sustainable farming we could synthesize three prototypes: a) a mixed contract combining action-based and result-based elements, signed bi-laterally between farmers and funding agencies for a medium duration (5-7 years); b) a result-based contract, signed between a group of farmers (collective) and the funding agency, with flexible duration (from short to medium or long term); and c) a value-chain contract, signed between farmers and other actors of the value chain (e.g. food processors, retailers, certifiers), which builds on an existing AECM contract and provides a price premium for more sustainable products. As the figure (above) suggests, the majority of the respondents would choose a mixed, action- and results-based contract for an European level contract prototype, but still almost one-quarter of the respondents would suggest alternative contracts, mainly ones which offer more flexibility to choose collective (landscape-level) agreements or different contract lengths from shorter to longer term.

We also asked what the best way is to implement these novel contracts, and there seems to be an agreement about agri-environmental-and climate measures still being the main target area, where innovative contract characteristics can be implemented as top-ups or additional payments to more mainstream conventional (i.e. action-based) contracts. In terms of funding novel contracts through the Common Agricultural Policy, responding experts underlined the outstanding importance of the Pillar 2 payments. Within Pillar 2 policy instruments, almost 70% of the participants pointed to agri-environmental and climate measures, while voluntary interventions in Pillar 2 for investment, knowledge exchange and cooperation, as well as for ecological constraints were listed by 34.5%. Eco-schemes, which is a part of the new green architecture affiliated with the Pillar 1 payments, were also mentioned by 34.5% of the respondents – with this proportion, eco-schemes seem to be the most promising instrument within Pillar 1 with a considerable potential to integrate innovative contracts.

As we learned from the first round of the Delphi study, available budget is a strong constraint for implementing innovative contracts (beside others, like increased transaction costs or higher uncertainties). Financially supporting environmentally friendly farming through different instruments of the CAP, as suggested by the findings shared above, can be a strategy to alleviate the budget burden. However, it raises further questions such as additionality and potential double-payments received for the same result from different schemes. Fostering coherence within the CAP and between the CAP and other policy areas is a key step forward and will also be a focal topic of the third round of our Delphi study.

written by Eszter Kelemen & Boldizsár Megyesi (ESSRG)

 

For infos on tools and techniques for initiating a policy dialogue on innovative approaches check our Practice Abstracts no. 10