Epsilon Archive for Student Projects

Abstract

The problem with passive farmers has arised as an effect of the European Union´s common agricultural policy (CAP) and the decouplement from production-based payments. Payments to passive farmers contradict the purpose of the single payment scheme and constitute a great cost for the EU. The new contractual period after 2013 has given rise to discussions on the direction of the CAP with a purpose of increasing the efficiency of the single payment scheme, and reducing passive farming.

The aim of the study is to increase the knowledge about a few factors’ influence on passive farmers’ attitudes towards land use and the CAP. Both quantitative and qualitative methods were used. Both parts concerned questions about land use and future scenarios of the agricultural policy. The quantitative study consisted of a survey sent to 400 randomly chosen passive farmers. The qualitative study was performed by interviewing six passive farmers in the region of Mälardalen.

The results show that the farms are small which makes it difficult to run a profitable farm business and motivate necessary investments. The farmers’ average age is high which can cause unwillingness to change. Furthermore, a large part of the passive farmers are found in low-productive areas. The most important factors, causing passive farming, are market factors, especially the income generated from the single payment scheme. The possession of forest is another important factor since it generates a lower interest in agriculture, and therefore active farming.

None of the future scenarios presented to the respondents would lead to a change in their land use, which seems unlikely since two of the scenarios would imply no income for passive farmers. Removal of the single payment scheme is the most suitable scenario for minimizing the problem with passive farming. A condition for maintained farming in Sweden in this case, is better profitability. Better profitability is considered the only thing that would make passive farmers produce actively, regardless of politics.