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Environmental support to farmers – how does it affect economic performance?

To increase sustainability beyond increasing the productivity of farms, the rural development program subsidies farmers who implement environmental measures to protect the environment. Examples are support for the establishment of riparian strips and wetlands that enhance biodiversity and reduce eutrophication. But how important is environmental support for farmers’ economy? Will farmers implement environmental measures, not only to protect the environment, but also to ensure the long-term survival of their farm?

This project studies how environmental support is distributed among farms – if some farms use environmental support to a greater extent than others and if environmental support contribute to the farm’s economy. We use data on farms and individuals from several sources (the Swedish Board of Agriculture and Statistics Sweden's Business Register and the Longitudinal integration database for health insurance and labour market studies (LISA)) and study the environmental support that was in use 2001-2015.

The project will be finalised in spring 2019.