1. Agriculture and the Environment
Prof. Dr. Sedef Akgüngör
Notes from:

2. Around half the EU's land is farmed.
Farming has contributed over the centuries to creating and maintaining a unique countryside.
rich variety of landscapes and habitats
The ecological integrity and the scenic value of landscapes make rural areas attractive for the
establishment of enterprises,
for places to live, and
for the tourist and recreation businesses.

3. The links between the richness of the natural environment and farming practices are complex.
Many valuable habitats in Europe are maintained by extensive farming, and a wide range of wild species rely on this for their survival.
But inappropriate agricultural practices and land use can also have an adverse impact on natural resources, like
pollution of soil, water and air,
fragmentation of habitats and
loss of wildlife.

4. The Common Agricultural Policy (CAP) has identified three priority areas for action to protect and enhance the EU's rural heritage:
1. Biodiversity and the preservation and development of 'natural' farming and forestry systems, and traditional agricultural landscapes;
2. water management and use;
3. dealing with climate change.
This is achieved by:
targeting aid at rural development measures promoting environmentally sustainable farming practices, like agri-environment schemes;
enhancing compliance with environmental laws.

5. General principle
The integration of environmental concerns into the Common Agricultural Policy is based on a distinction between
ensuring a sustainable way of farming by avoiding environmentally harmful agricultural activity and  
providing incentives for environmentally beneficial public goods and services.

6. Key terms as regards the CAP and environment
Polluter-Pays-Principle - Avoiding environmental damage
The Polluter-Pays-Principle states that the polluter should bear the costs of avoiding or remedying environmental damage. Generally, farmers have to ensure compliance with mandatory national and European environmental standards and respect the basic mandatory standards forming part of the cross- compliance regime at their own costs. Non- compliance with mandatory requirements is subject to sanctions.

7. Provider-Gets-Principle - Provision of environmental services
The Provider-gets-Principle is described as remunerating voluntary environmental commitments going beyond legal requirements. For the CAP, this principle is taken up via agri- environment payments which encourage farmers to sign up for environmental commitments beyond the reference level of mandatory requirements. Agri-environment payments shall cover the costs incurred and income forgone as resulting from voluntary environmental commitments.

8. Reference Level – Base Line
The reference level or base line represents the demarcation between environmental requirements with compliance costs falling on the farmer and those measures that offer farmers a remuneration for environmental commitments. In line with the internationally agreed definition of the polluter pay principle, the reference level is represented by mandatory environmental standards, resulting from environmental legislation or cross-compliance requirements. Beyond this reference level, agri-environment payments can be applied.

9. Public Goods
A public good is a good that, even if it is consumed by one person, is still available for consumption by others. As the individual readiness to pay for public goods is frustrated by free-rider options of others, markets do not function with respect to ensuring a satisfactory supply of goods. Thus, the delivery of public goods, in line with society's demand, requires political action. On the supply side, agriculture can provide for public goods such as maintaining attractive, cultivated landscapes, contributing to the cultural heritage of regions or enhancing the environment.

10. Examples of commitments covered by national/regional agri-environmental schemes are:
environmentally favourable extensification of farming;  
management of low-intensity pasture systems;  
integrated farm management and organic agriculture;  
preservation of landscape and historical features such as hedgerows, ditches and woods;  
conservation of high-value habitats and their associated biodiversity.