Practice Abstract 66 - Analysis of selected policy measures and alternative policy design options - UNIBO - parth.chatzinikolao2@unibo.it

Short title (native language): 
Analysis of selected policy measures and alternative policy design options - UNIBO - parth.chatzinikolao2@unibo.it

Short summary for practitioners (native language): 
Legumes are affected by a complex un-harmonized policy mix. In analysing relevant policy instruments for the near future, an evidence based modelling exercise was effected to support formulation of policies promoting legumes.
Our review showed published policy modelling tools specifically related to legumes to be rare. Most models address farm level decisions and the impact of specific policy measures already in place (e.g., coupled payments). In some works, multiple indicators and multicriteria frameworks account for environmental and ecological concerns linked to legume cultivation.
We used land allocation models to understand farm level incentives and design various policy options. They were further exploited in modelling future policy options concerning eco-schemes - one of the most innovative parts of the CAP reform. Eco-schemes are annual payments for the uptake of voluntary measures related with environment, biodiversity, and climate change. A specific eco-scheme measure for the rotational use of legumes is considered.
Modelling different farm types with simulated optimal crop mixes (Not all farms already cultivated legumes.) a sensitivity analysis to legume introduction showed high heterogeneity among farms in the opportunity cost of legume production.
Searching for optimal eco-scheme design, it was shown that simple measures may incur the self-selection problem- participation most likely among farmers that would cultivate legumes regardless. In these instances, the introduction of this measure will have little impact. Payments may be need adapting as incentives to different farm types. A clear understanding of opportunity costs and environmental objectives, targeted by the instrument is required.