Innovation in the field: The Bornholm CIL visit farms to explore Carbon Farming

Innovation in the field: The Bornholm CIL visit farms to explore Carbon Farming

by | Jun 8, 2021 | Workshops & Events

On May 26, the CIL of Bornholm arranged visits to farms practicing non-tillage faming, Conservation Agriculture and holistic grazing. Twelve participants, farmers, advisors, authorities and researchers, visited three farms to learn more on these practices in relation to Carbon Farming. The participating farmers, both hosts and others, were very enthusiastic about these farming practices in relation to reducing the impact of farming on climate and for making future farming on Bornholm more resilient to climate changes. However, when discussing trade with CO2-certificates as a tool to support the farmers economically in adopting these practices, the farmers were very skeptical. They identified six major reasons for not contracting reductions in emissions and increased storage of carbon in order to sell CO2-certificates:

  • The economic incentive is far too low with currently expected prices of certificates
  • The administrative work is too time-consuming
  • Long-term contracts limit the room to maneuver in the strategic management
  • The model-based calculation of certificates is not reliable
  • The reduced emissions and increased storage of Carbon should be kept in the farming sector
  • Uncertainty of fit of certificates with future changes in the subsidies and regulations
Simplicity is key for an attractive scheme

Instead, the farmers want simplicity. They would like to see non-tillage systems, Conservation Agriculture and holistic grazing acknowledged as practices contributing to climate-neutral and climate-resilient farming and included in a Carbon Farming eco-scheme in the next generation of support under the Common Agricultural Policy. A few ticks in the right boxes of the yearly application for support should be sufficient paperwork.

In need for fresh ideas

In the CIL of Bornholm, we had the idea of developing new innovative contracts as an add-on/extension to an existing scheme on CO2-certificates, improving and adding elements to increase the uptake and the outcomes in terms of climate impacts of the contracts. However, the farmers currently do not see contracts based on the sale of CO2-certificates as an option for funding farming practices contributing to the development towards a climate-neutral agriculture. Therefore, for the Bornholm CIL the next steps of the Carbon Farming track is currently unclear. Bottom-up innovation is challenging and not always a straightforward process. 

Written by Erling Anders (University of Copenhagen), Photo: © Vivi Granby

Exploring feasibility of novel approaches – A Delphi study

Exploring feasibility of novel approaches – A Delphi study

by | Jun 3, 2021 | Results, Work progress

The team from ESSRG, overseeing the policy work package in Contracts2.0, conducted a Delphi-survey to highlight limitations of the current agri-environmental schemes as well as to gauge the perception of innovative approaches for the delivery of public goods amongst policy makers, farmers/advisors, researchers and NGO’s across Europe.

The Delphi method is based on structured expert surveys and draws on experiences and knowledge of the participants in form of empirical, predictive and normative aspects. Its core concept is to facilitate discussions and develop consensual ideas among participants via several correlated rounds allowing experts to reconsider their opinion in each round.

It is planned to run altogether three rounds of the Delphi survey, to assess the knowledge base and to stimulate a discussion regarding the adoption of innovative contractual solutions for a farmer- and eco -friendly agriculture. The first round of the survey, conducted in March/April 2021, was completed by 41 stakeholders form 17 European countries. The aim was to first depict the limitations of current agri-environmental schemes, followed by an assessment of the knowledge base and experiences regarding the four novel approaches being at the heart of contracts2.0: results-based payments, collective action as well as value chain and land tenure approaches. In the following some of the results are summarized:

Limitations of the current schemes are evident

Regarding the limitations the results suggest, that financial (e.g. transaction cost, compensation vs. reward) and institutional (e.g. bureaucracy, lack of flexibility) factors are the most relevant. But knowledge-related aspects (e.g. lack of robust scientific evidence, limited access to advisory services) as well as the need for improved monitoring and regional differentiation were also mentioned as hindering an effective implementation of agri-environmental measures.

Results- vs. action-based payments

Concerning the innovative approaches, results-based payments were perceived as potentially (highly) effective in achieving the ecological objectives (especially biodiversity related) due to the agreement of clear and measurable outcomes. Respondents highlighted that rewarding farmers for their environmental performance (instead of compensating for their lost income or increased costs) contributes to the attractiveness of this approach. While the increased flexibility and autonomy for farmers are additional advantages, issues like monitoring (e.g. definition of robust indicators, use of IT or farmers expertise to bring down cost) and risk mitigation (uncertainty due to external factors) still pose a challenge and need some further attention when refining/adapting this approach. Many respondents state that setting up such schemes would require initially large investments (management, monitoring, trainings), which might serve as a barrier for the adoption. As a potential middle ground some experts suggest a combination of results-based payment as a bonus on top of an action-based implementation to reward more ambitious efforts.

Collective Action

Many respondents agreed that the collective approach (or group contracts) can effectively deliver on the (mostly biodiversity related) objectives when adequate ecological expertise is involved. The main argument in favor of cooperation is the positive effect on the connectivity of habitats through a coordinated management of suitable measures on landscape scale. The decreased (real or perceived) transaction cost on the farmers’ side is another advantage. While some respondents argue a long-lived tradition with cooperation amongst farmers helps to succeed when collectively implementing measures, others highlight the importance of a feeling of trust within a collective and/or contractual elements for regulating individual behavior being the key factors for success. Regarding the transaction cost of the collective approach respondents acknowledge a shift from public transaction cost (administrations) to the private sector (mainly the collective itself or their management respectively).

Value chain approach

The value chain approach is well received by most respondents, since it seems well suited to reward farmers for their environmental performance, independently from public funding. The generation of income through an adequate market price is also more in line with farmers’ business logic (instead of relying on public funds). This approach seems to work well with shorter value chains and a more regionalized marketing, while large retailers do often not engage so easily in such programs. A key factor of this approach is the labeling of the extra effort to simplify the decision to purchase for the environmentally conscious customers. Given the already large variety of labels, special attention needs to be paid to a transparent and clear communication of the environmental performance throughout the value chain. Respondents recognize no significant (institutional, cultural or social) barriers to implement this approach, however it is perceived to require an extensive infrastructure and a broad knowledge base.

Land tenure contracts

The Land tenure approach is the one with the most uncertainty among the respondents, possibly due to a potential lack of experience with this type of contract. It could be a well-suited approach for large landowners, especially when intermediaries (National Parks, Church, NGO’s) are involved. The comparatively longer contract periods of land-tenure approaches not only contributes to the environmental effectiveness but also benefits the farmer by provided a sound and predictable financial base, where uncertainty and risks are comparatively low.

How does the ideal contract look like?

The last block of the survey addressed the question of the ideal contract. Interestingly the (assumed) most effective type of contracts across all respondents were by far the publicly funded agri-environmental scheme (AES). Regarding the characteristics of a contract the opinions differ a bit more. Bi-laterally agreed and publicly funded contracts with a flexible length and a mix of results- and action-based payments earned the highest approval rate. Although the results of this survey are far from being representative, the glimpse into the minds of different stakeholder groups involved with the discussion of agricultural policy issues, has provided us with some valuable insights. Especially the open-ended questions have generated a rich pool of ideas, to guide us on our path towards the development of contractual solutions that benefit farmers and nature. The third and last round of the Delphi will be completed in September 2021.

For a more detailed and comprehensive interpretation of the results check out this report.

Figure 2. Differences of the characteristics of the ideal contract according to the background of the respondents. Source: own compilation based on the 1st round of the Delphi survey.

Results-based contracts – positive feedback from UK farmers

Results-based contracts – positive feedback from UK farmers

by | May 25, 2021 | Work progress

Since 2016, results-based contracts have been trialled in two pilot areas in England – on hill farms in the Yorkshire Dales National Park and arable land in the lowlands of East Anglia. With monitoring data from four years of environmental performance and farmer attitudes, these pilot schemes provide a rich source of learning about the practical aspects, advantages and disadvantages of this novel contract approach.  DEFRA (Department for Environment, Food & Rural Affairs) recently renewed the contracts for a further year.  This new phase will see farmers co-designing new measures and exploring opportunities to expand results-based contracts across the farms.

The University of Aberdeen, together with Contracts2.0 action partner Natural England and the Yorkshire Dales National Park Authority, have recently surveyed participating farmers in the National Park to find out more about their views on key support mechanisms, barriers and management practices within the results-based scheme. They found that farmers welcomed the additional agency afforded by a results-based approach and recognised pragmatic benefits such as simplified paperwork and flexibility.  Participants appreciated good financial rewards for continuing or adapting sustainable management practices to maintain or improve habitat quality. Findings further indicate the perception among farmers that longer duration results-based contracts offer potential for greater improvements in habitat quality. Also, of great importance and value to the farmers has been the strong working relationships and consistent dialogue with the scheme’s administering bodies.

For more information of the trialled results-based schemes check our partner’s Website: Results-Based Agri-environment Payment Scheme (RBAPS) pilot study in England – GOV.UK (www.gov.uk)

For more on results-based examples check out https://www.rbpnetwork.eu/

Written by Annabelle LePage(Natural England)

monitoring grassland
Biodiversity in Tuscany: Strengthening the custodian farmer’s role

Biodiversity in Tuscany: Strengthening the custodian farmer’s role

by | Apr 23, 2021 | Workshops & Events

On April 23, 2021, the University of Pisa organized a discussion about the “Strategy for an evolution of Custodian farmers’ role” in the Tuscany Region to protect regional genetic resources from extinction – an important pillar for protecting crop and species biodiversity. Our researchers Francesco Riccioli and Roberta Moruzzo, with the help of their action partner representative Cinzia Lenzarini, presented the current situation of custodian farmers in Tuscany and discussed strategies to improve the role of these farmers in the Rural Development Plan.

The in situ conservation of genetic resources at risk of extinction is a critical pillar for preserving the biodiversity of regional crops and species. As previous successful experiences (e.g., Aglione (garlic) della Chiana, Farro (emmer) della Garfagnana) lead the way, the next step for Garfagnana will be to start the valorization of the farmers’ efforts through the activation of a value chain specializing on regional crops and species. Remuneration of the extra effort will help to keep the local knowledge, traditions and methods alive. Protection by utilizing!