Agricultural land use in an environmentally sensitive area: An assessment of an agri-environmental policy measure

The agri-environmental measures included in European Union regulation 1257/99 encourage agricultural methods designed to protect the environment and maintain the countryside. The option of such environmentally favourable management of farming round a sensitive ecosystem including two lakes is examined. A multi-objective programming model is used to assess the cost of reducing the use of agrochemicals by changing the pattern of cropping alone. The solution shows that a substantial reduction in the use of agrochemicals can be achieved, if the support scheme provided for in this regulation can offset income loss due to reduced agrochemical use. The proposed aid results in a substantial reduction in the use of fungicides and insecticides, which are the most noxious agrochemicals.