Assessment of environmental performance on farms using FADN: a case study of the Region of Mazowsze and Podlasie

Abstract

Agri-environmental Schemes are the main agricultural policy instrument currently available in the European Union to help improve the relationship between agriculture and the environment. The conducted research included the assessment of AES (Agri-environmental Schemes) implementation in the Region of Mazowsze and Podlasie, Poland. This Region is characterized by worse natural, organizational, and production conditions than in other Regions in Poland. Out of the 292 analyzed farms, 146 formed the research sample, while another 146 constituted the control sample. In 2010 and 2014, all analyzed farms kept entries in accounting books under FADN (Farm Accountancy Data Network). All farms were classified according to TF8 as fieldcrops, milk, and mixed. For each type of farm, a research and control sample were distinguished. The research sample included farms that participated in the AES, whereas the control sample comprised farms that did not join the program. For each farm from the research sample, the most similar farm was selected in the control group, taking into account its type and location. The conducted study confirmed that the implementation of the AES has a positive effect on the environment, as it results in lower use of synthetic fertilizers, crop protection products, and GHG (greenhouse gas) emissions per ha. However, the research showed that the costs of reduction of GHG emissions are very high. In 2014, the cost of a decrease of 1 Mg CO2 eq amounted to 1,302 PLN on fieldcrop farms, 611 PLN on milk farms, and 1,112 PLN on mixed farms. This is important information for policy makers, as it indicates that, while planning subsequent pro-environmental programs, it is crucial to perform a cost-benefit analysis and an ex ante assessment of the costs of planned activities in relation to the expected environmental effects.