Environmental services coupled to food products and brands: food companies interests and on-farm accounting.

Much research has been carried out on governmental support of agri environmental measures (AEM). However, little is known about demands on and incentives from the commercial market for environmental contributions of the farmers. The factors farm structures, level of remuneration and legal framework have been thoroughly investigated. However, demands of the food industry for environmentally friendly goods(1) and their effects on farmers' decisions have not yet been analyzed. Leading companies in the food industry have observed an increasing consumer awareness and, due to higher competition, see an additional need to communicate environmental benefits which result from either organic production methods or agri-environmental measures. To address this research deficit, two case studies were carried out. The first case study is a survey aimed at the industrial food producers' demands with regards to the environmental performance of supplying farms. Concurrently, within a second survey farmers were questioned to find out what conditions are required to implement agri-environmental measures beyond cross compliance and document their environmental performance. This article presents the outcomes of the first case study. The results show that food companies have an interest in the documentation of environmental benefits of supplying farms for their marketing strategies. Provision of support by finance or contract-design is also seen as appropriate tool to promote an environmentally friendly production. In turn the food producers' demand and support for documented environmental services can have a positive influence on farmers' decisions for implementation and documentation of these services. Thus, the surveys provide essential findings for further development of documentation strategies for environmental benefits within the supply chain.

Assessing biodiversity on the farm scale as basis for ecosystem service payments.

Ecosystem services payments must be based on a standardised transparent assessment of the goods and services provided. This is especially relevant in the context of EU agri-environmental programs, but also for organic-food companies that foster environmental services on their contractor farms. Addressing the farm scale is important because land users/owners are major recipients of payments and they could be more involved in data generation and conservation management. A standardised system for measuring on-farm biodiversity does not yet exist that concentrates on performance indicators and includes farmers in generating information. A method is required that produces ordinal or metric scaled assessment results as well as management measures. Another requirement is the ease of application, which includes the ease of gathering input data and understandability. In order to respond to this need, we developed a method which is designed for automated application in an open source farm assessment system named MANUELA. The method produces an ordinal scale assessment of biodiversity that includes biotopes, species, biotope connectivity and the influence of land use. In addition, specific measures for biotope types are proposed. The open source geographical information system OpenJump is used for the implementation of MANUELA. The results of the trial applications and robustness tests show that the assessment can be implemented, for the most part, using existing information as well as data available from farmers or advisors. The results are more sensitive for showing on-farm achievements and changes than existing biotope-type classifications. Such a differentiated classification is needed as a basis for ecosystem service payments and for designing effective measures. The robustness of the results with respect to biotope connectivity is comparable to that of complex models, but it should be further improved. Interviews with the test farmers substantiate that the assessment methods can be implemented on farms and they are understood by farmers.