Multifunctional Policy Measures: Farmers' Choice

Kyösti Arovuori and Jukka Kola

No 21400, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The elements of multifunctional agriculture are strongly related to national, regional and local conditions. This indicates that it is hard to find common measures, which could efficiently enhance multifunctionality in different areas with different agricultural conditions. In order to really enhance the multifunctional role of agriculture, there is a need for newly designed measures. A need exists to have information from the groups involved in agricultural policy. To respond to this need we apply the stated choice method to find out, which measures Finnish farmers prefer when the measures introduced include multifunctionality enhancing elements. We introduced to farmers 12 different measures involving different levels of targeting, contracting and monetary compensation. We estimated a multinomial logit model to explain farmers' first choice with respect to policy options introduced. The results show that farmers are willing to accept multifunctionality enhancing elements and complementary terms of support as a basis for agricultural policy. To ensure the fulfilment of these terms a need exists for a large enough compensation. In practice, this compensation needs to cover all the costs for farmers of fulfilling the terms introduced in any particular support scheme.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 29
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21400

DOI: 10.22004/ag.econ.21400

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