Ingo Heinz University of Dortmund, Germany Nature and Economy: An Application to the Rural Countryside Wageningen, 31 May – 2 June 2007 Workshop The EU water and agricultural policies are posing new challenges: How can co-operative agreements with farmers contribute to a more sustainable land use?

EU Water Framework Directive “WFD” Requirements Date of achievement Set-up of river basin management plants 2009 Achievement of cost recovery and incentive water pricing 2010 Establishment of cost-effective programs of measures 2012 Achievement of good status of water bodies 2015 Justification of derogation from good status of water bodies 2015

Reform of the EU Common Agricultural Policy “CAP “ e.g. Cross Compliance Requirements Maintenance of farmland in good status Maintenance of long-term grassland Compliance with 19 EU regulations concerning: > Nitrate, sludge, groundwater, natural habitats > Pesticides, food safety, animal health > Animal welfare Applicable from

Instruments of agri-environmental policy 1.Direct regulations, such as limit values for the application of nutrients 2.Taxes, such as charges on the use of pesticides 3.Agri-environmental programmes, such as support of building storage facilities for semi-liquid manure 4.Co-operative agreements with farmers

Features of co-operative agreements 1.Voluntary agreements between farmers, water companies and nature conservation groups 2.Written commitments for each of the parties, such as > farmers reduce application of fertilizers > water companies provide financial resources 3.The commitments are site-specific and cost-effective in reaching sustainable land use in agriculture 4.Authorities give priority to voluntarily agreed commitments over statutory rules

Occurrence of co-operative agreements (2002) Country Austria Denmark Finland France Germany Luxembourg The Netherlands Sweden UK Total Number Agricultural land (1.000 ha) , ,500

Example: Viersen, Germany Groundwater abstraction5.5 Million m³ / a for 75,000 people Expenditures of water company395,000 Euro / a Saved costs in water treatment972,000 Euro / a Environmental benefits: Prevention of further groundwater pollution by nitrate Increase of water cost0.07 Euro / m³ Portion of water price3.4 %

Example: Holsterhausen, Germany Groundwater abstraction25 Million m³ / a for 350,000 people Expenditures of water company420,000 Euro / a Saved costs in water treatmentnot applicable Environmental benefits: Maintenance of good groundwater quality Increase of water cost0.016 Euro / m³ Portion of water price0.9 %

Example: Munich-Mangfall, Germany Groundwater abstraction90 Million m³ / a for 1,300,000 people Expenditures of water company765,000 Euro / a Saved costs in water treatmentnot applicable Environmental benefits:Maintenance of good groundwater quality, grassland and wild flora / fauna due to organic farming Increase of water cost0.008 Euro / m³ Portion of water price0.7 %

Co-operative agreements support WFD Prevent increase of water pollution Reverse rising trends of water pollution Assist cost-effective measures to reach good water status Avoid disproportionate costs Participate stakeholders

Co-operative agreements support CAP reform Advise farmers in complying with statutory rules Keep financial burdens of farmers and consumers moderate Improve the effectiveness of CAP policies, such as ‘cross compliance’ and ‘support of rural development' Assist the conversion of agriculture to a more sustainable land use by fostering multiple functions in rural areas (e.g. landscape management)

Water use Water quality Good status of water bodies Co-operative agreements Site-specific, cost-effective and participatory changes of farming practices WFD requirements CAP reform Multiple landscape services

More research activities needed….

1.Update the findings from previous case studies 2.Incorporate new EU Member States to carry out case studies 3.Assess how co-operative agreements can > prevent water pollution > assist cost-effective measures to reach good water status > help farmers in complying with mandatory rules > minimise the financial burdens of farmers > contribute to converting agriculture to a more sustainable land use by fostering multi-functionality

4.Analyse and evaluate policy measures to promote co-operative agreements, such as > educational programmes > providing financial support > amending mandatory regulations (e.g. by giving preference to voluntarily agreed commitments over compulsory rules because of their superior cost- effectiveness)

… a new EU-wide investigation of co- operative agreements is under way !