Agro-ecological Knowledge Hub

D5.3 - Participatory Analysis of Market and Policy Instruments for Agro-ecological Transition

Authored by colleagues from GAN, CREA, TI with contributions from all project partners this Deliverable is part of the governance and policy assessment of the UNISECO project. The objective of this report is twofold: (i) to create a database of existing market and policy instruments (MPIs) that support Agro-ecological Farming Systems (AEFS) in Europe; (ii) to summarise the analytical review of MPIs to identify and understand the key policy factors that enhance or limit agro-ecological transition in the 15 UNISECO case studies.

A stepwise qualitative research design was developed to understand complex and context-specific issues associated with the agro-ecological transition in 15 case studies across Europe. These case studies cover key farming systems (arable, perennial, livestock, mixed), at different geographical levels (national, sub-national local) and the stage in the transition pathway (conventional, input substitution, redesign). In each case study, UNISECO partners carried out participatory activities with the stakeholders in the local Multi-Actor Platform (MAP), following common guidelines. The guidelines provided a common operationalisation of the research method while enabling flexibility to overcome difficulties found in local contexts of the case studies (Linares et al., 2019).

The data collection process led to the identification of 289 MPIs (policy, market and mixed instruments), covering 14 different types of instruments and implemented at the farming system, value chain and territorial levels. Most of the MPIs are policy instruments, but private initiatives also provide important market opportunities for agro-ecological products and networking and peer-to-peer learning for farmers, which are important for stimulating and promoting Agro-ecological Farming Systems.
The findings of the comparative case study analysis show that the instruments of CAP Pillar I policy have weaker links with the agro-ecological transition than Pillar II instruments. Among the latter, the instruments assessed by the case studies to be most effective were Agro-environmental measures, Organic farming, Farm Modernization and Investment, and Advice, information and training. The EU regulations and directives for farming practices were also assessed as having positive roles in the agro-ecological transition. Within Food Policies, the public procurement of organic products for public canteens, and the National food strategies scored highly for aiding the agro-ecological transition. Amongst market instruments, Certification Schemes were assessed positively overall, but opinions varied, and at times they were diverging.

A more detailed analysis of the key MPIs in each case study has enabled an understanding of the main positive and negative factors related to the success of instruments to support agro-ecological transitions. Research findings highlighted that the existing MPIs such as agri-environmental schemes and support for advisory services have positive effects on the decisions of farmers to adopt more ecological practices and motivate farmers to initiate or continue the transition. Key positive factors identified were: the provision of economic stability and technical and financial support to farmers willing to experiment with new sustainable practices; promotion of collective actions and understanding amongst local actors; production and spread of new knowledge; design od tools and activities that highlight the roles of agriculture in the environment.

There was general agreement about the positive aspects of most MPIs but room was identified for improvement. In particular, efforts are needed by policy makers and decision makers in agri-business to mitigate the negative factors of existing MPIs, which are preventing the adoption of agro-ecological among European farms. For example, CAP Pillar I is an important instrument for ensuring the viability of farming, which has sustained farming in the EU with a more ecological emphasis, by linking direct payments to the greening rules and via the cross-compliance. However, is insufficient to encourage the agro-ecological transition, involves a complex mix of different, and often conflicting, views and interests and may require structural change.

Additional efforts are needed to improve the delivery of the existing MPI framework, by designing revised instruments that are more effective in addressing contextual issues towards the agro-ecological transition. Strengthening the knowledge base of current farming practices and support of the Agricultural Knowledge and Innovation System are important steps in supporting the diffusion of Agro-ecological Farming Systems, contributing to reducing the risk aversion of farmers and empowering consumers.

Dedicated education campaigns, and certifications and labelling schemes are required to create a demand for agro-ecological produce. The inclusion of agro-ecological themes in the curriculum of formal education programmes (secondary and tertiary education) could aid the creation of a new generation of farmers paying greater attention to environmental and health implications of different farming methods. Such education and training could also improve the levels of awareness of information and communication technology tools, which is key to the agro-ecological transition in Europe.

Improved support for collective actions could make it easier for farmers to access to specific training, processing facilities and agricultural machinery, they could not afford otherwise. It also helps with communication between farmers and supports the creation of knowledge exchange amongst peers, which can reduce farmer aversion towards risk associated with the adoption of new agro-ecological practices. Networking contributes to the creation of synergies amongst local actors in the value chain which could enable a fairer distribution of added value, thereby supporting local rural development.