Developing agricultural pest management strategies with reduced-risks to surface water: An economic case study of California's Central Coast region.

Pesticides are critical for protecting agricultural crops, but the off-site transport of these materials via spray drift and runoff poses risks to surface waters and aquatic life. California's Central Coast region is a major agricultural hub in the United States characterized by year-round production and intensive use of pesticides and other chemical inputs. As a result, the quality of many waterbodies in the region has been degraded. A recent regulatory program enacted by the Central Coast Regional Water Quality Control Board set new pesticide limits for waterways and imposed enhanced enforcement mechanisms to help ensure that water quality targets are met by specific dates. This regulatory program, however, does not mandate specific changes to pest management programs. In this study, we evaluate the economic, environmental, and pest management impacts of adopting two alternative pest management programs with reduced risks to surface water: 1) replacing currently used insecticide active ingredients (AIs) that pose the greatest risk to surface water with lower-risk alternatives and 2) converting conventional arthropod pest management programs to organic ones. We utilize pesticide use and toxicity data from California's Department of Pesticide Regulation to develop our baseline and two alternative scenarios. We focus on three crop groups (cole crops, lettuce and strawberry) due to their economic importance to the Central Coast and use of high-risk AIs. For Scenario 1, we estimate that implementing the alternative program in the years 2017-2019 would have reduced annual net returns on average by $90.26 - $190.54/ha, depending on the crop. Increased material costs accounted for the greatest share of this effect (71.9%-95.6%). In contrast, Scenario 2 would have reduced annual net returns on average by $5,628.12 - $18,708.28/ha during the study period, with yield loss accounting for the greatest share (92.8-97.9%). Both alternative programs would have reduced the associated toxic units by at least 98.1% compared to the baseline scenario. Our analysis provides important guidance for policymakers and agricultural producers looking to achieve environmental protection goals while minimizing economic impacts.

Non-monetary motivations of the EU agri-environmental policy adoption. A causal forest approach.

This paper investigates the non-monetary motivations of farmers' adoption of agri-environmental policies. Unlike the monetary (income) motivations, non-monetary drivers can not be directly observed but can be identified from observational data within appropriate quasi-experimental designs. A theoretical justification of farmers' choices is first formulated and a consequent natural experiment setting is derived. The latter admits heterogeneous, i.e. Individual, Treatment Effects (ITE) that, in turn, can be interpreted in terms of more targeted and tailored policy expenditure. A Causal Forest (CF) approach is adopted to estimate these ITEs for both the treated and not treated units. The approach is applied to two balanced panel samples of Italian Farm Accountancy Data Network (FADN) farms observed over the 2008-2018 period and concerns agri-environmental policies delivered through the Common Agricultural Policy (CAP). Results show how heterogeneous the farmers' response and the associated non-monetary motivations can be, thus indicating room for a more efficient policy design.

Targeting best agricultural practices to enhance ecosystem services in European mountains.

Agri-environmental policies in Europe are failing to sufficiently address ongoing environmental degradation, biodiversity decline, climate impacts, and societal demands for sustainability. To reverse this, policymakers, practitioners, and farmers need better guidance on which specific agricultural practice/s should be promoted and how to adapt current practices to reach the desired objectives. Here we use social valuation tools to elucidate the relationship between agricultural practices and the provision of key ecosystem services in mountains, including maintenance of scenery from agricultural landscapes, conservation of biodiversity, regulation of climate change through carbon sequestration, production of local quality products, maintenance of soil fertility, and prevention of forest wildfires. We use as case studies two contrasting but representative mountain agroecosystems in the Mediterranean and Nordic regions of Europe. We analyze the best agricultural practices in both agroecosystems to reach the targeted environmental outcomes under three plausible policy scenarios. We find significant differences in the average contribution of agricultural practices to ecosystem services provision, which suggest the need for regionalizing the research efforts and, consequently, the design of agri-environmental policies. However, we also identify practices for ecosystem service delivery across policy scenarios and agroecosystems. Among these, grazing and silviculture practices such as extending the grazing period, grazing in semi-natural habitats, grazing in remote and abandoned areas, adapting stocking rate to the carrying capacity, and moving flocks seasonally, stand out for their relevance in all policy scenarios. These results highlight the potential of adequate grazing and silviculture practices to deliver bundles of ecosystem services. Our study provides guidance to design agri-environmental policies in Europe that focus on rewarding farmers for their sustainable management of natural resources, climate change mitigation and adaption and biodiversity conservation.

Balancing Bees and Pest Management: Projected Costs of Proposed Bee-Protective Neonicotinoid Regulation in California.

Neonicotinoid insecticides are widely used in agriculture, including in many California specialty crops. With mounting evidence that these insecticides are harmful to bees, state and national governments have increasingly regulated their use. The European Union, Canada, and United States have imposed use restrictions on several neonicotinoids, such as on the timing of applications. In 2020, California proposed a draft regulation to mitigate harm to managed pollinators from four nitroguanidine-substituted neonicotinoids (NGNs): clothianidin, dinotefuran, imidacloprid, and thiamethoxam. We use data on California pesticide use from 2015 to 2017 to analyze the economic and pest management implications of the 2020 draft proposed regulation for seven crops: almond, cherry, citrus, cotton, grape, strawberry, and tomato. From 2015 to 2017, these crops accounted for approximately 85% of total hectares treated with NGNs and 87% of NGN use by kilograms of active ingredient applied in treatments that would have been affected by the proposed regulation. These insecticides often primarily target Hemipteran insect pests. In most cases there are alternatives; however, these are often more expensive per hectare and do not have the same residual effectiveness as the NGNs, which are systemic insecticides. Overall, we estimate that pest management costs for these crops would have increased an estimated $13.6 million in 2015, $12.8 million in 2016, and $11.1 million in 2017 if the 2020 draft proposed regulation had been in effect, representing a 61% to 72% increase in the cost of managing the target pests.

More than two decades of Agri-Environment schemes: Has the profile of participating farms changed?

The agri-food sector is under increased pressure from consumers to improve on the sustainability of production processes. Policies that incentivise farmers to improve environmental performance, such as agri-environment schemes (AES), are increasingly important. Understanding the choice to participate in these programmes aids policymakers in designing schemes that meet participation and environmental goals. While a number of studies have investigated the decision using cross-sectional data on one or multiple locations, very few have used longitudinal data to investigate the impact of institutional changes over time. Using Ireland as a case study, this paper uses a nationally representative panel of data spanning 23 years to model the impact of scheme and policy changes on the type of farms participating in AES. This paper argues that environmental issues surrounding intensive farms (such as the loss of nutrients and sediment to water and greenhouse gas emissions) are not being optimally addressed in scheme design and further development of such programmes is needed to reduce negative environmental impacts.

Potential of the economic valuation of soil-based ecosystem services to inform sustainable soil management and policy.

The concept of ecosystem services, especially in combination with economic valuation, can illuminate trade-offs involved in soil management, policy and governance, and thus support decision making. In this paper, we investigate and highlight the potential and limitations of the economic valuation of soil-based ecosystem services to inform sustainable soil management and policy. We formulate a definition of soil-based ecosystem services as basis for conducting a review of existing soil valuation studies with a focus on the inclusion of ecosystem services and the choice of valuation methods. We find that, so far, the economic valuation of soil-based ecosystem services has covered only a small number of such services and most studies have employed cost-based methods rather than state-of-the-art preference-based valuation methods, even though the latter would better acknowledge the public good character of soil related services. Therefore, the relevance of existing valuation studies for political processes is low. Broadening the spectrum of analyzed ecosystem services as well as using preference-based methods would likely increase the informational quality and policy relevance of valuation results. We point out options for improvement based on recent advances in economic valuation theory and practice. We conclude by investigating the specific roles economic valuation results can play in different phases of the policy-making process, and the specific requirements for its usefulness in this context.

The revealed preferences of Baltic Sea governments: Goals, policy instruments, and implementation of nutrient abatement measures.

Nitrogen and phosphorus loads are considered a major reason for the eutrophication of the Baltic Sea. Until now, most of the abatement has been made at point sources while the implementation of policies for nonpoint sources has not led to equally large reductions in emissions. The purpose of this study is to investigate the determinants of how nutrient abatement measures are implemented by countries in the agricultural sector of the Baltic Sea region. We investigate how goal setting, policy instrument choice, and the level of implementation is determined by characteristics of the abatement measure as well as socio-economic characteristics of the country where it is implemented. Econometric analysis of a cross-sectional data set suggests that income, institutional capacity, and economies of scope in abatement and enforcement are important determinants of policies developed and their implementation.

The role of multi-target policy instruments in agri-environmental policy mixes.

The Tinbergen Rule has been used to criticise multi-target policy instruments for being inefficient. The aim of this paper is to clarify the role of multi-target policy instruments using the case of agri-environmental policy. Employing an analytical linear optimisation model, this paper demonstrates that there is no general contradiction between multi-target policy instruments and the Tinbergen Rule, if multi-target policy instruments are embedded in a policy-mix with a sufficient number of targeted instruments. We show that the relation between cost-effectiveness of the instruments, related to all policy targets, is the key determinant for an economically sound choice of policy instruments. If economies of scope with respect to achieving policy targets are realised, a higher cost-effectiveness of multi-target policy instruments can be achieved. Using the example of organic farming support policy, we discuss several reasons why economies of scope could be realised by multi-target agri-environmental policy instruments.