2–5 Jun 2025
German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig
Europe/Berlin timezone

Will rewarding farmers for providing public goods help restore wetlands?

Not scheduled
20m
German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig

German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig

Puschstr. 4, 04103 Leipzig
Quasi-experimental work in the field of agricultural economics and agri-environmental policy and agri-food business economics with clear links to policy questions Session Block

Speaker

Katarzyna Zagorska (University of Warsaw)

Description

Motivation and Research Question
Wetlands play a key role in climate change mitigation, water protection, and the preservation of biodiversity. In Poland, over 1.1 million hectares of degraded peatlands are used for agriculture (Kotowski, 2021). However, the interest of farmers in re-wetting these areas and implementing sustainable practices is limited and often met with resistance. Current socio-economic mechanisms that support landowners in adopting nature-based solutions (such as eco-schemes and agri-environmental-climate measures within the EU’s Common Agricultural Policy) do not sufficiently address the scale of the problem. Farmers traditionally view land drainage as necessary, and disregard benefits such as reduced flood risks and enhanced drought resilience. This study investigates whether rewarding farmers for delivering public goods can facilitate wetland restoration in agricultural landscapes.
Methods
We reviewed current wetland restoration schemes in Poland, particularly the eco-scheme "Water Retention on Permanent Grassland" introduced in 2022. We assess the effectiveness of this scheme and identify key barriers to adoption by farmers, including the level of payments and the underlying calculations. Current payment levels for wetland practices are too low/not competitive with alternative agricultural land management options. We show how calculations are made for the CAP policy purposes in Poland, and propose an alternative approach.
The paper examines the potential values of ecosystem services provided by restored wetlands, by methods of benefit transfer. We also consider how these values can be linked with spatially targeted agri-environmental policies, particularly focusing on areas with high potential for wetlands recovery and water retention. Based on that we consider the level of bonus for results to optimize payment schemes for restoring wetlands in agricultural landscapes.
Results and Lessons Learned
The analysis shows that the current payment rates under the eco-schemes are insufficient to incentivize farmers to engage in wetland restoration. Payments are often seen as a compensation for lost income, but they fail to account for the broader environmental benefits of wetland restoration and “shadow price” of alternative land use. Our findings suggest that higher payment rates, combined with educational programs, pilot projects, and better spatial targeting of incentives, could significantly enhance the effectiveness of these programs. The study also highlights the need for further research to develop more accurate economic models that consider the spatial variability of ecosystem services and the role of wetlands in mitigating the impacts of droughts and floods. Integration of carbon credits into wetland restoration programs could offer an additional incentive.

Status of your work First results
Early Career Researcher Award Yes, the paper is eligible

Primary authors

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