Agri-Environmental Policy in Switzerland Eduard Hofer, Vice-DirectorSwiss Federal Office for Agriculture: Agri-Environmental Policy in Switzerland Eduard Hofer, Vice-Director Swiss Federal Office for Agriculture Sustainable rural land management beyond 2013 Brussels, 19 / 20 September 2007


Contents: Contents History of reform Policies and instruments Achievements and deficits Expectations of the population Outlook


History of reformFacts and figures: 1.6 million ha 64 000 farms (60% full-time) Labour force: 93 000 fta (3%) Value added: 1% of GDP History of reform Facts and figures Degree of self-sufficiency (joules) Vegetable products 41 % Animal products 94 % Total 59 % Cheese 122 %


History of reformReform in steps: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 History of reform Reform in steps


History of reformReform in steps: 1999 2000 2001 2002 2003 2004 2005 2006 2007 History of reform Reform in steps


Slide6: History of reform Change in the structure of support


Slide7: Ecological requirements History of reform Path to present system 1998 1993 Direct payments


Slide8: Ecological requirements History of reform Path to present system 1998 1993 Hills and mountains since 1999 Area Ecological and ethological direct payments Hills and mountains Farm and area IP 4 Ecological and ethological programs Direct payments Roughage consuming animals Roughage consuming animals


Slide9: animal welfare standards balanced use of fertilisers appropriate share of ecological compensation areas (7%) crop-rotation soil protection selected and targeted application of plant protection products Policies and Instruments Ecological requirements


Slide10: Farms with more than 3 ha of arable land: =>At least four crops maximum share Cereals (excl. corn and oats) 66% Wheat 50% Corn 40% Corn with catch crop 50% Beets 25% Potatoes 25% Oilseeds, sunflowers 25% Peas 15% Policies and Instruments Example: Crop rotation


Slide11: Payments per hectare for total utilised agricultural area Payments for roughage consuming animals Additional payments in hills and mountains for sloping terrain and animals Policies and Instruments General direct payments


Slide12: Ecological compensations Extensive and less intensive meadows; hedges; copses; flowering fallow fields; tall fruit trees, etc. Payments for extensive production of cereals and rape-seed Organic farming Payments for animal welfare com- mitments (animal-friendly stables and daily access to open air) Policies and Instruments Ecological direct payments


Achievements and deficitsOrdinance on Eco-Quality : Achievements and deficits Ordinance on Eco-Quality Poor quality of Ecological Compensation Areas (ECA) ECA not interlinked  Ordinance on Eco-Quality Payments for ecological quality (number of species, occurrence of rare species) Payments for interlinked ECA Minimum standards by central government Co-financing: 80% central government, 20% local


Achievements and deficitsOrdinance on Eco-Quality: © Jenny et al. 2003 Achievements and deficits Ordinance on Eco-Quality


Achievements and deficitsSales of mineral fertiliser: Achievements and deficits Sales of mineral fertiliser Nitrogen Phosphorus (P2O5)


Achievements and deficitsSustainable use of resources: Achievements and deficits Sustainable use of resources Aim: more efficient and sustainable use of nitrogen, phosphorus, plant protection products, energy, soils and biodiversity. initial aid to enhance new technologies and systems bottum-up: initiative of the region or a branch 80% support, limited in time (6 years) prospect of success


Slide17: 1986 Sugar decision 1990 Vine regulation 1995 Constitution without ecology 1996 Constitution with ecology 1998 Small farmers-initiative Expectations of the population Path breaking votes 62% 53% 51% 78% 77%


Slide18: 1 The Confederation shall ensure that agriculture contributes substantially by way of a sustainable and market-oriented production: a. to the secure provision of food for the population; b. to the conservation of natural resources and the upkeep of rural landscapes; to a decentralized settlement of the country. Expectations of the population Federal Constitution Art. 104


Slide19: 3 It shall conceive the measures in such a way that agriculture may fulfill its multiple functions. Its powers and tasks shall particularly be the following: a. It shall complement agricultural revenues by direct payments, to secure a fair and adequate remuneration for the services rendered, provided that compliance with ecological requirements is proven b. … Expectations of the population Federal Constitution Art. 104


Expectations of the populationAdaptive Conjoint Analysis: Expectations of the population Adaptive Conjoint Analysis 27 expectations, previously appraised Bundle of two and three expectations Choice, which one is more important Rating of expectations


Expectations of the populationHighest rated expectations : Especially strong animal protection Adequate income for farmers Especially strong environmental regulations Sufficient self-supply Preservation of traditional species Development and taking care of public recreation areas Development and taking care of ecologically valuable areas Expectations of the population Highest rated expectations


OutlookChallenges: Outlook Challenges Price gaps to neighbours Lacking competitiveness Ecological deficits


OutlookScenarios : Outlook Scenarios AP WTO FTAAEU


OutlookActions: Outlook Actions Reduce tariffs According to scenario Accompanying measures as much as needed Direct payments Targeting Tailoring Regional differentiation Co-financing? Modulation?


Thanks for your attention!: Thanks for your attention!


Expectations of the populationAdaptive Conjoint Analysis: Expectations of the population Adaptive Conjoint Analysis


Expectations of the populationDifferent types of expectations: Expectations of the population Different types of expectations Population 100 % „Preserver“ „Liberal reformers“ „Ecologists“


Expectations of the populationCommon expectations of the different types: Adequate income for farmers Adherence to especially strong environmental regulations Development and taking care of public recreation areas Sufficient self-supply Adherence to especially strong ethological regulations Development and taking care of ecologically valuable areas Preservation of traditional landscapes Expectations of the population Common expectations of the different types


Slide29: Policies and Instruments Implementation and control


Policies and InstrumentsQuality and transparency measures: Protected designations of origin and geographical indications Ban on battery hen cages, hormones feeding, antibiotics for production, GMO cultivation Declaration of country of origin Declaration of origin for production methods banned in Switzerland Policies and Instruments Quality and transparency measures


ChallengesProducer prices: 62 53 64 43 41 43 29 33 44 52 51 44 58 71 44 42 34 0 10 20 30 40 50 60 70 80 90 100 Milk Cattle Veal pork Chicken Eggs Wheat Barley Corn Potatoes Sugar cane Raps Apples Pears Carrots Onions Tomatoes Index (CH = 100) Producer prices in the EU in comparison to Switzerland 2002/04 Challenges Producer prices


ChallengesExpenses: 30,0 bio. CHF Food Expenditures in Switzerland (2002/04) Challenges Expenses


ChallengesAgro ecological targets until 2005: 1 nach OSPAR-Methode Quellen: IAW der ETHZ, Agroscope FAL Reckenholz, BUWAL, BLW Challenges Agro ecological targets until 2005


ReformsVariation in income per farm: Reforms Variation in income per farm 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 CHF 1990/92 1995/97 2000/02 2003 2004 2005


ReformsSector income: Reforms Sector income 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* CHF billion * provisional


Slide36: Agricultural area: one million hectares Swiss agriculture