Less favoured area payments – impacts on the environment, a German perspective

Abstract

In the European Union, the support of Less Favoured Areas (LFA) has a long tradition as a part of the Common Agricultural Policy (CAP). Above all, it is the objective of the subsidies to maintain the agricultural production in LFAs, but also to consider the environmental aspects in LFAs and its funding schemes. Investigations of the latter are subject of this article. After having discussed the theoretical possibilities to influence environmental impacts by the funding scheme, several analyses are compiled and complemented by own calculations. The research has shown that agricultural practices within Less Favoured Areas are more environmentally friendly than in other areas. Environmentally friendly in this regard means e.g. a lower use of fertilisers and pesticides, but also a higher participation rate in agri-environmental measures. In addition, the crop structures of farms are analysed, e.g. the share of maize and wheat in farms inside and outside the LFAs. While the results presented in this paper relate mainly to Germany, the information on the European level is also taken into consideration. Finally, based on these investigations, recommendations for the revision of the funding programmes following 2013 are given.