Case Study #3

Results-based contracting for biodiversity conservation

Bavaria, Thuringia and Brandenburg - TECHNISCHE UNIVERSITAET MUENCHEN

A results-based grassland conservation scheme targeting plant species conservation
has recently been initiated as part of the regional agri-environment programme
“KULAP” (Kulturlandschaftsprogramm – Cultural Landscape Programme) in the
state of Bavaria. While previously all schemes were designed as practice-based,
paying farmers for management action or non-action (e.g. limit to fertilization of
cropland or cutting date restrictions for grasslands), the new Bavarian KULAP
includes one results-based measure. Farmers signing up are paid if a number of pre-
defined plant species can ex post be found on their land. The results-based scheme is
being piloted during the programming period 2015-20. The analysis will compare the
acceptance and success of such schemes in relation to conventional schemes. In
addition to analysing existing data on adoption levels and plant species diversity,
EFFECT will work with stakeholders both on the farmer site as well as on the
executive and controlling level (e.g. agricultural agencies, state research institutions
for agriculture) to analyse the advantages and obstacles of the results-based scheme.
EFFECT will also make use of programme monitoring data from the Bavarian
grassland monitoring surveys to investigate the applicability of the existing and
future results-based schemes in grasslands. Own customized data will be obtained to
assess the effectiveness of the result-based scheme, as compared to its action-based
predecessor or twin schemes based on an econometric difference-in-difference
approach (Lechner, 2011). The Bavarian State Research Center for Agriculture (LfL)
will be the EFFECT associated practice partner for Bavaria.