Farmer compensation and its consequences for environmental benefit provision in the Higher Level Stewardship Scheme

Emmanuelle Quillérou, Robert Fraser, Iain Fraser

    Research output: Contribution to journalArticlepeer-review

    16 Citations (Scopus)

    Abstract

    The Environmental Stewardship Scheme (ESS) provides payments to farmers for the provision of environmental services based on forgone agricultural income. Consequently, farmers with a relatively low opportunity cost of agricultural land will be particularly attracted to apply for entry into the ESS within a given payment region. This article tests whether there exists a significant relationship between Higher Level Stewardship (HLS) Scheme entry and agricultural yields. Empirically, HLS participation is found to be negatively related to cereal yields at the farm level. This could be associated with ‘auspicious selection’ of land into the Scheme, with greater ‘value for money’ provided by the higher entry of land with lower agricultural forgone income but higher environmental benefit within the region.
    Original languageEnglish
    Pages (from-to)330-339
    JournalJournal of Agricultural Economics
    Volume62
    Issue number2
    DOIs
    Publication statusPublished - 2011

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