Remuneration for the environmental benefits of organic farming

Background and Objective

Organic farming stands for a holistic concept of land use, with the aim particularly to recognise and respect natural constraints. For the environmental benefits they deliver, organic farms currently receive a land area-based payment. The level of this environmental payment has so far been calculated on the basis of regional averages for increased costs and reduced output of organic farms compared with conventional farms.

This approach has two disadvantages. Firstly, the support payments bear no relationship to the value of the environmental benefits delivered. And secondly, the support payments to not provide any financial incentive to adopt farming practices that go beyond the minimum requirements of organic regulations. The Thünen Institut and partner organisations have therefore, in the context of a research project, set the goal of developing a differentiated and coherent approach to the remuneration of the environmental benefits of organic farming.

To make the subsequent implementation of the remuneration concept easier, the expectations and experiences of agricultural practitioners and policy administrators will be considered from the outset. In addition, the concept development will ensure that the remuneration approach could be applicable to all farmers at a later date.

Preliminary Results

In this project, the Thünen Institute will show, with respect to the 30% land area goal of the Federal Government, how organic farming can be strengthened effectively and the public benefits of agriculture remunerated appropriately.