Cost-Effectiveness Evaluation of Swiss Agri-Environmental Measures on Sector Level

Abstract This paper focuses on non-linear programming models and their suitability for ex-ante evaluations of agri-environmental policies on sector level. An approach is presented to compare organic farming payments as a multi-objective policy, with other, more targeted agri-environmental policies in Switzerland. The Swiss version of the comparative static sector-consistent farm group model FARMIS is able to group the sector’s farms into organic and non-organic farms and optimise them separately. CH-FARMIS is expanded with three modules particularly for this study: a) allowing for the simulation of uptake; b) integrating life cycle assessment data for energy use, eutrophication and biodiversity; and c) estimating the policy and farm-group-specific public expenditure, including transaction costs. This paper illustrates the functions of the model, shows preliminary energy use calculations for the German Agricultural Sector and discusses the advantages and limitations of the approach

Modelling conventional and organic farming : a literature review

Literature shows a significant development of organic farming in Europe but with considerable differences between countries. These depend on general agricultural policy (the set of regulations and laws), specific policy incentives, and also on differences in consumer behaviour. This paper reviews scientific literature on the evaluation of the technical, economic and environmental aspects of conversion from conventional towards organic production. The methods and results of empirical and normative modelling studies at the farm level, with special regard to farm management and policy, are analysed. Empirical modelling studies show the importance of incentives and agricultural policy, and the usefulness of integrated modelling for determining the effects of different policies on farm management. Normative modelling shows the effects of new policy instruments and technology, and allows the high level of detail needed for what-if analysis. Normative models of conversion to organic farming confirm the importance of incentives and the agricultural policy context.Additional keywords: farm modelling, conversion, empirical modelling, normative modelling, policy, context