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SP8 - Agricultural Business Economics

The objectives of SP 8 can be summarized as follows:

We aim to estimate the objective requirements and impacts of adopting environmentally friendly practices with regard to the necessary farm-level resources (capital and technology) as well as with regard to profitability and risk.

We aim to reconstruct the subjective perceptions and decision-making processes of farm managers regarding conventional and sustainable land use practices.

We aim to identify the socio-economic impediments which prevent the adoption of sustainable land use innovations. This refers to objective facts (e.g. missing capital, farm-level costs for providing ecosystem services) as well as to subjective perceptions of the decision-making farm managers.

Based on the understanding of the socio-economic impediments of adoption we aim to identify effective and cost-efficient policy schemes (strategies) that secure farm incomes and influence land management towards environmentally desired outcomes. We also aim to approximate the budgetary requirements for these strategies and the resulting aggregate land use and environmental changes.