The Reform of Support Mechanisms for Upland Farming: Paying for Public Goods in the Severely Disadvantaged Areas of England

Nick Hanley, Sergio Colombo, Pamela Mason and Helen Johns

Journal of Agricultural Economics, 2007, vol. 58, issue 3, 433-453

Abstract: The incomes of hill‐farmers in ‘Less Favoured Areas’ of the UK have traditionally been supported by payments related to their production levels. Reform of the Common Agricultural Policy and changes in policy objectives within the UK imply a need to change this basis of support. We investigate the option of paying for public goods produced, focusing on landscape features and habitats. A choice experiment study is used to estimate willingness to pay for different landscape features in four Severely Disadvantaged Areas of England. We find significant differences in the value of landscape features, both within and across regions, and parallel differences in the aggregate value of different policy options for upland areas. We discuss briefly how this information could be included in a spatially differentiated payments scheme.

Date: 2007
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