Description

Farmers receive an acreage-based grant if they undertake to grow a strategically important (energy) crop on a certain acreage within a specific period of time. It is usually up to the farmer to decide how much land to earmark for meeting this obligation.

Requirements

• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Clear and coherent political strategy and targets for policy-makers and public authorities
• Clear responsibilities in public authorities
• Close cooperation and knowledge sharing with farmers' organisations
• Close cooperation and knowledge sharing with local advisory services
• Close cooperation and knowledge sharing with research institutions
• Constant market surveying and forecasting
• Country-wide monitoring of natural resources and their quality (e. g. water, soil, forests, air, grassland)
• Monitoring and control system for the agricultural production processes supported
• Sanction mechanisms
• Respect for cultural landscape and traditions

Possible Negative Effects

• Inefficient cultivation structures/market distortion
• Where specialised farming systems have been set up, the sudden discontinuation of the obligation to grow a specific crop can lead to economic losses