Participation in agri-environmental schemes: A contingent valuation study of farmers in Ireland

Agri-environment schemes (AES) are an important part of agricultural policy within Europe. They seek to achieve important goals with regards to biodiversity and the protection of natural resources while also helping to maintain culturally important landscapes and agricultural practices. Participation rates have been an important area of research into assessing the success of AES. Within Ireland and more broadly across Europe, systematic non-participation in AES has been observed. Certain farm and farmer types have been found more likely to participate. In this paper a contingent valuation exercise is conducted that assesses how AES payment levels impact on the participation decision of farmers. A bivariate probit with sample selection is utilised to account for farmers who are unwilling to participate regardless of payment levels. This allows for a more accurate estimation of farmer willingness-to-accept to participate in the hypothetical AES presented. It also offers insight into the characteristics of farmers who are unlikely to ever participate in these schemes. From the results it appears a significant proportion (30%) of farmers are unlikely to ever participate in AES, with the remaining open to participation depending on the compensation offered. It is argued that increased compensation levels may increase participation rates among some farmers who to date have been unlikely to participate.