Lessons learned and policy implications from 20 years of Swiss agricultural policy reforms: A review of policy evaluations

Hube , Robe ; El Benni, Nadja; Finge , Robe
A icle
Lessons lea ned and policy implica ions om 20 yea s
o Swiss ag icul u al policy e o ms: A e iew o policy
e alua ions
Bio-based and Applied Economics (BAE)
P o ided in Coope a ion wi h:
Fi enze Uni e si y P ess
Sugges ed Ci a ion: Hube , Robe ; El Benni, Nadja; Finge , Robe (2024) : Lessons lea ned and policy
implica ions om 20 yea s o Swiss ag icul u al policy e o ms: A e iew o policy e alua ions, Bio-
based and Applied Economics (BAE), ISSN 2280-6172, Fi enze Uni e si y P ess, Flo ence, Vol. 13, Iss.
2, pp. 121-146,
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Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
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Ci a ion: Hube , R., El Benni, N., &
Finge , R. (2024). Lessons lea ned and
policy implica ions om 20 yea s o
Swiss ag icul u al policy e o ms:
A e iew o policy e alua ions. Bio-
based and Applied Economics 13(2):
121-146. doi: 10.36253/bae-14214
Recei ed: Janua y 23, 2023
Accep ed: No embe 20, 2023
Published: July 25, 2024
Da a A ailabili y S a emen : All el-
e an da a a e wi hin he pape and i s
Suppo ing In o ma ion iles.
Compe ing In e es s: The Au ho (s)
decla e(s) no con lic o in e es .
Edi o : Me i Raggi; Sil ia Code oni
ORCID
RH: 0000-0003-4545-456X
NEB: 0000-0002-3379-2425
RF: 0000-0002-0634-5742
Lessons lea ned and policy implica ions om
20 yea s o Swiss ag icul u al policy e o ms: A
e iew o policy e alua ions
Robe Hube 1,*, Nadja El Benni2, Robe Finge 1
1 Ag icul u al Economics and Policy ETH Zü ich, Swi ze land
2 Fede al Resea ch S a ion Ag oscope, Tänikon, Swi ze land
*Co esponding au ho . E-mail: [email p o ec ed]
Abs ac . Lea ning om he expe iences o o he coun ies can suppo e o s o
imp o e ag icul u al policies. Swi ze land p o ides an in e es ing case because i s pol-
icy is excep ionally a ge ed owa ds he es ablishmen o sus ainable p oduc ion sys-
ems. We desc ibe he his o y and he cu en s a e o Swiss ag icul u al policy, e iew
e alua ions o policy e o ms, summa ise hei impac and ou line he lessons lea ned
o policy de elopmen s in o he coun ies. We discuss ou implica ions: i) some goals
ha e been me , albei a a high cos , and so, inc easing e iciency o policies is key; ii)
he e is a need o mo e cohe ence and coo dina ion ega ding he di e en policy p o-
g ammes (i.e. in he sense o a ‘ ood sys em policy’); iii) c oss-compliance measu es
(i.e. minimum s anda ds o ecei ing suppo ) ha e an impo an le e age e ec ; and
i ) policy di e en ia ion (e.g. by spa ial a ge ing) and inc easing a me s’ disc e ion
o e how o achie e goals (e.g. by implemen ing esul s-based paymen s) a e key o
u u e policies.
Keywo ds: ag icul u al policy, compa a i e s udies, policy compa ison, policy e alua-
ion, ag icul u e and ood policy, a m suppo .
JEL codes: Q01, Q18, Q57.
1. INTRODUCTION
Ag icul u al policies a e essen ial in achie ing a sus ainable and esilien
a ming sec o . Ag icul u al policy goals and ins umen s ha e high he e o-
genei y ac oss na ions, which e lec s he di e en his o ical de elopmen s
o and undamen al di e ences in socie al needs wi h ega d o ag icul u al
policies wo ldwide (Swinnen, 2018). Policy lea ning om he expe iences o
o he coun ies p o ides an impo an en y poin o imp o ing ag icul u al
policymaking. Swi ze land, which is geog aphically si ua ed in he hea o
Eu ope bu no pa o he Eu opean Union o he Eu opean Common Ag i-
cul u al Policy (CAP), p o ides an in e es ing case o policy lea ning.
Ag icul u al policy in Swi ze land is cha ac e ised by i s s ong go e n-
men al suppo . The p oduce suppo es ima e o Swiss ag icul u e is abou
50%, which implies ha hal o a me s’ g oss eceip s a e based on public
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Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
Robe Hube , Nadja El Benni, Robe Finge
suppo (OECD, 2022). The o al amoun o go e n-
men al spending is app oxima ely 4 billion Swiss ancs
(CHF)1 pe yea o abou 50,000 a ms and a o al ag i-
cul u al a ea o 1.04 million hec a es (FOAG, 2022b).
The o al cos o axpaye s and consume s in 2022
amoun s o oughly CHF130,000 pe a m pe yea , o
abou CHF6000 pe hec a e o ag icul u al land pe yea .
In addi ion, Swiss ag icul u al policy has been a
o e unne in en i onmen al and animal wel a e p o-
g ammes. In 2022, abou 40% o di ec paymen s o
Swiss a me s a e a ge ed owa ds biodi e si y conse -
a ion, landscape main enance, sus ainable p oduc ion
sys ems and animal wel a e. Swiss ag icul u e’s high le -
el o suppo o en i onmen al and animal wel a e p o-
g ammes, and i s unique policy in e en ions in Eu ope,
p o ides a aluable example o policy lea ning. This is
especially so, gi en he plans o imp o e en i onmen al
pe o mance in he CAP (e.g. ia he Fa m o Fo k s a -
egy; (e.g., Schebes a & Candel, 2020) and by he UK as
i ies o make i s ag icul u al policies “g eene ” (e.g.,
G a ey, 2019).
In his pape , we p esen and analyse he goals
and ins umen s o Swiss ag icul u al policy. We also
desc ibe he his o ical de elopmen and implemen a ion
o he policy and ou line i s e ec i eness by e iewing
policy e alua ions o e he las 20 yea s. We discuss he
lessons lea ned om Swiss ag icul u al policy o p o ide
insigh o o he coun ies, including no only he posi-
i e aspec s ha should be ollowed bu also he nega i e
ones ha a e be e a oided. On his basis, we de i e he
implica ions o Swiss ag icul u al policy de elopmen
ha may ha e p omise in o he a ming con ex s and
en i onmen s.
The design and de elopmen o Swiss ag icul-
u al policy has p e iously only pa ly been desc ibed
(e.g., Cu y & S ucki, 1997; El Benni & Lehmann, 2010;
Mann, 2003; Mann & Lanz, 2013; Schmid & Lehmann,
2000). In i s la es e iew o Swiss ag icul u al policy,
in 2015, he OECD ocused on ecommending how o
de elop u he exis ing policies on a s a egic le el
(OECD, 2015). Since hen, no o e iew has been p o-
ided o he mos ecen e o m s eps ha aim o make
Swiss ag icul u e mo e ecologically sus ainable. O h-
e ag icul u al policy e iews and compa isons, such
as hose be ween he EU and he US (Baylis, Peplow,
Rausse , & Simon, 2008; Bland o d & Ma hews, 2019)
and be ween he CAP and indi idual coun ies, such as
he UK a e B exi (e.g., Roede e -Rynning & Ma hews,
2019), ha e p o ided insigh ul desc ip ions o ongoing
policy changes. In his con ex , coun ies ha wan o
1 Numbe s e e o he yea 2021. In 2023 1 Swiss anc (CHF) equals
ca. 1.05 eu o and 1.11 US dolla .
suppo mo e en i onmen - and animal- iendly mul-
i unc ional ag icul u al sec o s can gain insigh s om
he expe iences d awn om Swi ze land’s highly com-
plex ag icul u al policy (e.g. 104 di e en di ec paymen
measu es a e cu en ly implemen ed), i s speci ic policy
p og ammes and hei syne gies and ade-o s.
Ou analysis p esen s and discusses he lessons
lea ned om Swiss ag icul u al policy app oaches and
p o ides implica ions o po en ial ag icul u al poli-
cy de elopmen in Swi ze land and o he (Eu opean)
coun ies. Ou con ibu ion ocuses on h ee aspec s
ha ex end he cu en li e a u e on ag icul u al policy
lea ning. Fi s , we p esen de ails and expe iences o
a wide ange o ins umen s wi hin a mul i unc ional
ag icul u al landscape and e iew a (almos ) comple e
se o exis ing ag icul u al policy measu es ha ha e
been applied. Such a comp ehensi e analysis p o ides a
unique pe spec i e on he ac ha ag icul u al policy
is mo e han he sum o i s pa s. Second, he ecen
shi in Swiss ag icul u al policy owa ds en i onmen-
al and animal wel a e goals and ailo ed policy ins u-
men s may be exempla y o u u e Eu opean ag icul-
u al policy de elopmen (Schebes a & Candel, 2020).2
Despi e such e o s, Swi ze land is cu en ly obse ing
an inc ease in socie al discou ses ha ha e e ealed gaps
be ween socie al demand o wha ag icul u al and ood
sys ems should deli e , especially in e ms o en i on-
men al pe o mance and animal wel a e, and wha he
cu en policies allow hem o each (e.g. Hube & Fin-
ge , 2019). I is likely ha his is also eme ging in o he
coun ies. Thi d, Swi ze land co e s a la ge g adien o
na u al en i onmen s, om Alpine egions o hilly land-
scapes and highly p oduc i e plains, and hus ep esen s
an in e es ing case o analysing he po en ial o di e -
en ia ed policy measu es wi hin an ag icul u al policy
mix. The esul s om ou analysis p o ide impo an
en y poin s o he discussion o policy ins umen s and
he ans o ma ion o ood and ag icul u al policies no
only o Swi ze land bu also o o he coun ies.
The emainde o his pape is s uc u ed as ollows.
We begin by desc ibing he his o ical de elopmen o
Swiss ag icul u al policy. In he second sec ion, we p o-
ide an o e iew o he cu en goals, p og ammes, and
ins umen s o Swiss ag icul u al policy. In he hi d
sec ion, we p o ide an o e iew o he goals achie ed
om he di e en policies and discuss he e ec i eness
and e iciency o he a ious policy measu es, based on
a e iew o Swiss ag icul u al policy e alua ions. We
hen syn hesise he impac o he di e en policies, dis-
2 We do no p o ide an explici compa ison be ween Swiss ag icul u al
policy and he CAP beyond a sho desc ip ion o hei his o ic de el-
opmen (see he supplemen a y ma e ial)
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Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
cuss he lessons lea ned and p esen he implica ions o
policy-making and po en ial lea nings o o he coun y-
speci ic ag icul u al policies.
2. HISTORICAL DEVELOPMENT OF SWISS
AGRICULTURAL POLICY TO DATE
2.1. P o ec i e policies in he wen ie h cen u y
Go e nmen al egula ion o he Swiss ag icul u al
sec o s a ed a he beginning o he wen ie h cen u y.
The e olu ion o a new “ ood egime” a he s a o he
p e ious cen u y, when a me s we e inc easingly in e-
g a ed in o he indus ialising wo ld and dependen on
ade as well as mechanical and chemical inpu s (Tauge ,
2020), had igge ed a ious laws aiming o p o ec Swiss
a me s om low p oduce p ices due o impo s, educe
hei deb and main ain hei p oduc ion capabili ies.
A e he wo ld wa s, a new cons i u ional a icle de ined
a libe al economic policy in Swi ze land – albei wi h
he excep ion o he ag icul u al sec o . This “excep ion-
alism” p o ided a new legal basis o p o ec i e policies.
The subsequen 35-yea phase (1950–1985) was cha ac-
e ised by p o ec i e ma ke egula ions o g ain, milk
and suga , du ing which Swi ze land became he g ea -
es suppo e o ag icul u e wo ldwide (Hube & Fin-
ge , 2019). The p oduce suppo es ima e PSE – ha is,
he ans e om axpaye s and consume s o a me s
– was a abou 75% in he mid-1980s. This implies ha
h ee-qua e s o ag icul u al g oss eceip s came om
ei he ma ke p o ec ion o o he o ms o p ice suppo
(OECD, 2015).
2.2. The e a o decoupling
The lipside o his massi e suppo un il he begin-
ning o he nine ies was ha he Swiss go e nmen spen
almos CHF 2 billion o gua an ee high a m-ga e p ic-
es and sell p oduc ion su pluses om domes ic o e -
p oduc ion on in e na ional ma ke s, while inc easing
en i onmen al awa eness b ough o ligh he se e e
en i onmen al p oblems o his highly in ensi e p o-
duc ion sys em. A he same ime, he nego ia ions in
he U uguay ound o he Gene al Ag eemen on Ta i s
and T ade, and he subsequen ounda ion o he Wo ld
T ade O ganiza ion (WTO), placed addi ional p essu e
on Swiss bo de p o ec ion measu es and le el o suppo
o p oduce s. This domes ic and in e na ional p essu e
led o a majo change in Swiss ag icul u al policy in he
1990s as Swi ze land adap ed i s ede al cons i u ion o
public and in e na ional demands and income and p ice
policies we e decoupled. This decoupling was implemen -
ed in wo successi e e o m s eps. The i s o hese was
in 1992, when Swi ze land ejec ed economic in eg a ion
wi h he Eu opean Union bu decided o pu sue a ou e
o ag icul u al policy e o m combined wi h bila e al
ag eemen s, especially wi h o he Eu opean coun ies
(El Benni & Lehmann, 2010). P ice suppo was educed,
and decoupled di ec paymen s we e in oduced o all
a me s wi hou geog aphical es ic ions. In addi ion,
a me s could olun a ily apply o a so-called in eg a ed
p oduc ion p og amme,3 o which addi ional paymen s
we e p o ided (Finge & El Benni, 2013).
Wi h he nex e o m s ep, in 1999, p ice gua an ees
(e.g. o c ops and milk) we e abolished. Go e nmen al
spending was con e ed in o di ec paymen s, and a i -
a e quo as we e in oduced ha complied wi h WTO
ules. Di ec paymen s we e di ided in o gene al (lump-
sum a ea paymen s) and ecological di ec paymen s. To be
eligible o hese di ec paymen s, c oss-compliance meas-
u es we e in oduced ha gua an eed a minimum en i-
onmen al and social s anda d ac oss all a ms. Fa me s
loca ed in hilly and moun ainous egions addi ionally
ecei ed paymen s o compensa e o un a ou able p o-
duc ion condi ions and hus main ained p oduc ion and
concu en landscape main enance in emo e moun ain
a eas. While he i s e o m s ep, in 1992, was legally
based on wo a icles, 31a and 31b, newly in oduced in o
ag icul u al law, he egula o y change in 1999 was based
upon he new A icle 104 o he ede al cons i u ion,
which had been accep ed in a public o e in 1996.
A icle 104 (see he box in he online supplemen a y
ma e ial A) de ined mul i unc ionali y as he unde lying
jus i ica ion o public suppo o ag icul u e (Hedige ,
2006) and led o a s able poli ical phase be ween 1999
and 2015. Decoupling shi ed he inancial bu den o
ag icul u al suppo om he consume ( ia consume
p ices) o he s a e, and hus he axpaye ( ia ax money
used o di ec paymen s). Swi ze land’s new cons i u-
ional a icle explici ly o esaw a pe iodic examina ion
o he ag icul u al policy s a egy. The annual ede al
budge o he ag icul u al sec o , amoun ing o a ound
CHF 4 billion (app oxima ely 7% o o al go e nmen al
spending) had o be app o ed e e y ou yea s by he
Swiss pa liamen .
This ecu en e iew o he Swiss ag icul u al pol-
icy led o ou consequen e o m s eps named a e he
a ge ed yea s o he e o ms (AP02, AP07, AP11 and
3 In addi ion, a me s ounded he p i a e ood label o ganisa ion In e-
g a ed P oduc ion (IP Suisse) wi h he goal o align ag icul u al p o-
duc ion wi h en i onmen al p inciples such as a m nu ien balance,
di e si ied c op o a ion, soil p o ec ion and he a ge ed applica ion o
pes icides.
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Robe Hube , Nadja El Benni, Robe Finge
AP14–17). Policy de elopmen s in his pe iod we e in
line wi h he e o m agenda, including a ious de egu-
la ion and libe alisa ion s eps, e.g. he bila e al ade
ag eemen on cheese wi h he EU and aboli ion o milk
quo as (El Benni & Lehmann, 2010). Du ing his ime,
he de elopmen o ag icul u al policy was domina ed by
he adminis a ion and he execu i e (Hi schi, Widme ,
B ine , & Hube , 2013). O e all suppo and p o ec ion
dec eased sligh ly, and he p oduce suppo es ima e
amoun ed o abou 50% in 2021, compa ed o a ound
18% in he Eu opean Union (see Figu e 1).
2.3. Inc easing socie al p essu e igge s mo e en i onmen-
al sus ainabili y and animal wel a e
In Swi ze land, ci izens can in luence public policy
ia plebisci es. Popula ini ia i es allow any ci izen o
launch a p oposal o e ise he Fede al Cons i u ion.
In he pe iod om 2016 o 2022, en popula ini ia i es
we e launched ha add essed ag icul u al policy issues,
including ood secu i y, ood so e eign y, specula ion on
oods u s, ai - ade and animal wel a e and pes icides.
As a esul o hese, wo opposi e socie al conce ns col-
lided. On he one hand, a me s’ o ganisa ions wan ed
o e-in oduce p o ec i e measu es (e.g. s ic e impo
es ic ions, highe go e nmen al ma ke con ol); on
he o he , Swiss ci izens c i icised he ac ha ag icul-
u e had no been mee ing i s en i onmen al and ani-
mal wel a e goals. The inc ease in popula ini ia i es
ep esen ed a shi om a go e nmen -d i en p ocess
owa ds “g ass- oo s ini ia i es” ha had been de eloped
and a icula ed ou side, o in addi ion o, he legisla i e
and execu i e p ocesses. This phenomenon e ealed an
inc easing gap be ween socie al demand and he poli-
cies and plebisci es, which could be seen as a ba ome e
o he changes in socie al p e e ences o ag icul u e and
ela ed policies (Hube & Finge , 2019). While nine ou
o en popula ini ia i es had been ejec ed by Swiss o -
e s, hey s ill had a conside able impac on he de el-
opmen o Swiss ag icul u al policy by pu ing en i-
onmen al issues a he op o he agenda (Finge , 2021;
Schmid , Mack, Möh ing, Mann, & El Benni, 2019). The
p essu e led, o example, o he in oduc ion o a new
cons i u ional a icle (104a) in 2017 ha e ol ed om a
coun e p oposal o a popula ini ia i e ha ex ended
he ole o ag icul u al policy owa ds a mo e comp e-
hensi e “ ood sys em policy”. Mo eo e , e en hough he
la es e o m p ocess in Swi ze land had been delayed
(AP22+), he public p essu e had s ill led o a s eng h-
ening o ag icul u al laws on pes icide use and ni ogen
policies. Mo e p ecisely, om 2023 onwa ds, ag icul u -
Figu e 1. Compa ison o p oduce suppo es ima es (PSE) be ween Swi ze land and he EU. Da a om OECD (2022). The di e en colou s
e e o he g adien o coupling be ween he policies and ag icul u al commodi y ou pu . The ins umen s ep esen ed in g een a e ully
decoupled om ag icul u al p oduc ion (e.g. a biodi e si y conse a ion p og amme). Ligh g een e e s o suppo ha is no linked o
cu en ou pu (e.g. a ea-based paymen s o landscape main enance). Red e e s o paymen s coupled o p oduc ion (e.g. a ea-based pay-
men s o a speci ic c op, such as suga bee ). Blue e e s o suppo ha is coupled o commodi y ou pu s o inpu use.

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Lessons lea ned and policy implica ions om 20 yea s o Swiss ag icul u al policy e o ms: A e iew o policy e alua ions
Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
al policy aims o educe ni ogen and phospho us su -
pluses by 20% un il 2030, and he isks associa ed wi h
he use o plan p o ec ion p oduc s should be hal ed by
2027 (FOAG, 2023).4
Swiss ag icul u al policy and he CAP ha e e y
simila oo s and goals, and hey de eloped on pa wi h
espec o he decoupling o income and p ice policies
(see online supplemen a y in o ma ion B). Howe e ,
Swiss ag icul u al policies ha e on a e age gone u he
han hose o he EU wi h espec o aspec s o en i on-
men al and animal wel a e (see e.g., Me z, Liebe he ,
Schmucki, & Hube , 2020; Pe’e e al., 2014). The ques-
ion is whe he and how o he coun ies could lea n
om he Swiss expe ience o be e conside en i on-
men al challenges in ag icul u al policymaking (Alons,
2017; Pe’e e al., 2020).
4 These a ge s a e, howe e , s ill discussed in he ongoing poli ical p o-
cess o he AP22+.
3. CURRENT PROGRAMMES AND INSTRU-
MENTS IN SWISS AGRICULTURAL POLICY
Swiss ag icul u al policy is a sec o al policy a he ed-
e al le el. The main egula ions a e concen a ed wi hin a
ew laws wi h li le linkage ei he o each o he o o c oss-
sec o al policy a eas such as egional, en i onmen al and
clima e policy (Figu e 2). In he ollowing, we summa ise
he o e a ching goals o Swiss ag icul u al policy and
desc ibe i s in e en ional logic. We hen p esen wo key
policy ins umen s o he ag icul u al law, namely di ec
paymen s, and ma ke egula ion. De ails o he o he pol-
icy p og ammes in he ag icul u al law ( ha is s uc u al
suppo , inpu egula ion and esea ch and educa ion) a e
p esen ed in he online supplemen a y ma e ial C.
3.1. Policy goals and in e en ional logic
The goals o he Swiss ag icul u al policy a e de i ed
om he ede al cons i u ion (see online supplemen a y
Figu e 2. O e iew o Swiss ag icul u al policy, including majo legal undamen al ag icul u al law, ede al law on u al land, law on lease-
hold, spa ial planning law and en i onmen al law (g ey ci cles). Financial suppo o a me s is mainly p o ided h ough he ag icul u al
law, whe eas he o he laws include command-and-con ol egula ions. Majo ins umen ca ego ies wi hin Swiss ag icul u al law a e he
di ec paymen sys em (g een), inpu egula ion (ligh g een), esea ch and consul ing (da k g een), ma ke egula ion and p oduc ion ( ed)
and s uc u al suppo (blue). Icons e lec he majo policy p og ammes in hese a eas. The numbe s in CHF a e mone a y ans e s om
consume s and axpaye s o a me s pe yea , which ha e been s able since 2010. The igu e has been adap ed om Hube (2022). Please
no e ha he bubbles a e o illus a i e pu pose only and do no ep esen he (mone a y) size o he espec i e law a ea.
126
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Robe Hube , Nadja El Benni, Robe Finge
ma e ial A). The e a e wo key elemen s: Fi s , he a i-
cle de ines he mul i unc ional ole o ag icul u e; ha
is, he ag icul u al sec o should con ibu e owa ds a)
he eliable p o ision o oods u s o he popula ion,
b) he conse a ion o na u al esou ces and upkeep o
he coun yside and c) he decen alised popula ion se -
lemen o he coun y. This implies ha he ag icul u -
al sec o no only has a ole as a p oduce o ood bu
also as a s ewa d o he en i onmen and a key playe in
u al de elopmen . Second, he cons i u ion s a es ha
hese goals should be achie ed by means o a sus ain-
able and ma ke -o ien a ed p oduc ion policy. In p inci-
ple, his e lec s he main in e en ion logic5 (see Figu e
3) and he idea o decoupling income and p ice suppo
in he ag icul u al sec o ; ha is, ma ke p ices should
be based on he p inciple o economic eedom, whe eas
he con ede a ion can supplemen incomes by means o
di ec subsidies. I is impo an o no e, howe e , ha
ma ke -o ien a ed p oduc ion does no imply ully lib-
5 An in e en ion logic links he objec i e ha needs o be me wi h he
policy op ions ha exis .
e alised and de egula ed ma ke s. To ul il he goal o
ensu ing ood supplies, Swiss ag icul u al policy di ec ly
and indi ec ly suppo s ma ke p ices, he compe i i e-
ness o he ag icul u al sec o and a m s uc u es and
u al in as uc u e.
A icle 104 o he Fede al Cons i u ion also p e-
de ines ou ca ego ies o ins umen s ha should be
used o achie e hese goals (see Figu e 3). These main
policy ca ego ies a e i) di ec paymen s o suppo me h-
ods o p oduc ion ha a e speci ically na u al and ani-
mal iendly; ii) ma ke egula ion o p o ec a m ga e
p ices and decla e he p oduc ion o igin and quali y o
oods u s; iii) s uc u al suppo (i.e. he p o ision o
in es men aids and egula ion o he consolida ion o
ag icul u al p ope y holdings); and i ) inpu egula ion
o p o ec he en i onmen , e.g. agains he excessi e use
o e ilise s, pes icides and o he inpu s. The a icle also
p o ides he basis o suppo ag icul u al esea ch, coun-
selling, and educa ion, p o iding he basis o he Swiss
ag icul u al knowledge sys em (Ob is , Moschi z, Home,
& 2015). Finally, he a icle p o ides links o o he impo -
Figu e 3. The basic in e en ion logic summa ising he di e en and o e lapping links be ween he policy goals, main ins umen ca ego-
ies, ou pu s, and indica o s in he Swiss ag icul u al law. The goals o A icle 104 a e in g een; he addi ional goals o A icle 104a a e in
he whi e dashed box; ins umen s wi h highe impac s on p oduc ion a e in da ke blue. O he laws as well as esea ch and ex ension a e
depic ed as basis o suppo ing ca ego ies. Sou ces o indica o s and a ge alues: ‡FOAG (2022a); +FOAG (2023); †FOAG, BLV, and
BAFU (2023) *FC (2020) wi h e e ence o he yea 2021. Please no e ha he ba s and a ows a e o illus a i e pu pose only and do no
ep esen he (mone a y) size o he espec i e ins umen . Fo mula ion o he goals a e aken om he o iginal ansla ion o he Fede al
Cons i u ion o he Swiss Con ede a ion (admin.ch).
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an laws, such as he Fede al Law on Ru al Land and
Leasehold and he En i onmen al Law. The ou pu indi-
ca o s and he a ge s o he di e en policies a e se ou
in a ious epo s o he Fede al O ice o Ag icul u e
(FOAG, 2022a) and/o he Fede al O ice o he En i on-
men (BAFU & BLW, 2016), al hough hey a e cons an ly
deba ed and e ised as pa o poli ical p ocesses.
A icle 104a, which was in oduced in 2017 h ough
a public o e, s eng hens he ole o ood secu i y o -
mula ed in he o iginal 104; ha is, i s a es ha he
con ede a ion should sa egua d he basis o ag icul u -
al p oduc ion by main aining he ex en o ag icul u al
land and gua an ee ha ood p oduc ion is adap ed o
local condi ions. In addi ion, he new a icle also speci-
ies he ole o ade in secu ing ood a ailabili y by s a -
ing ha c oss-bo de ade ela ions should con ibu e o
he sus ainable de elopmen o he ag icul u e and ood
sec o . Finally, he a icle also s a es ha ood should be
used in a way ha conse es na u al esou ces ( ela ed
o ood was e, as an impo an policy goal).
The clea se ing o he linkage be ween he objec-
i es and ins umen s shows ha Swiss ag icul u al
policies a e s ongly ancho ed in he Fede al Cons i u-
ion. The ac ha he Swiss public can sugges di ec ly
amending he cons i u ion by popula ini ia i es, and
ha his democ a ic ool has been inc easingly used in
ecen yea s, means ha he Swiss cons i u ion can be
seen as a “social con ac ” be ween he ag icul u al sec o
and he es o he socie y (see e.g., Feind e al., 2019).
This b ings a high le el o legi imacy o he deci-
sion-make s on Swiss ag icul u al policy. On he lip-
side, he ede al cons i u ion is a ese oi o con lic ing
goals6 ha ha e led o many p ac ical ade-o s in he
implemen a ion o ag icul u al policy p og ammes and
ins umen s, as well as hei in ended ou comes. This
is also shown in he basic in e en ion logic (see Figu e
3), illus a ing he many o e lapping links be ween he
main objec i es in he cons i u ion and he ou policy
ca ego ies.
3.2. Di ec paymen s
A he hea o decoupling income and p ice poli-
cies, as well as incen i ising he up ake o mo e sus-
ainable a ming p ac ices, is he subs i u ion o p ice
egula ions wi h di ec paymen s ha emune a e a m-
e s o hei mul i unc ional ole in socie y. The Swiss
ag icul u al di ec paymen sys em has wo concep ual
pilla s. Fi s , paymen s a e condi ional on c oss-compli-
6 Swi ze land does no ha e a cons i u ional cou , and con lic ing a i-
cles may be added o he cons i u ion.
ance measu es. This implies ha a a m is only eligible
o di ec paymen s i i ul ils minimum en i onmen al
equi emen s (in he so called “p oo o ecological pe -
o mance”) and hose o indi idual a me s (e.g. age,
educa ion; see online supplemen a y ma e ial C1 o a
de ailed desc ip ion o hese s anda ds).
Second, he concep ual design o he cu en di ec
paymen sys em is inspi ed by he so called Tinbe -
gen ule, which s a es ha each indi idual ins umen
should add ess a single goal (Mann & Lanz, 2013). This
implies ha he e exis s a di ec paymen p og amme
o each speci ic goal o Swiss ag icul u al policy, namely
i) ensu ing ood supply, ii) he main enance o cul u al
landscapes, iii) he p omo ion o landscape quali y, i )
inc easing esou ce e iciency, ) biodi e si y conse a-
ion and i) he de elopmen o en i onmen al- and ani-
mal- iendly p oduc ion sys ems. The concep ual align-
men o he Swiss di ec paymen p og amme wi h he
Tinbe gen ule aims o ensu e ha he schemes wi hin
he co esponding p og amme a e well- a ge ed o ag i-
cul u al policy goals (e.g., S. Wunde e al., 2018). An
o e iew o hese paymen schemes, and hei budge s
can be ound in Table 1.
In addi ion o he a ge ing, each o he p og ammes
may consis o di e en di ec paymen schemes and
measu es, which allows he co esponding di ec pay-
men s o be “ ailo ed” o p oduc ion egions, a m ypes
o landscape elemen s, which should ensu e he addi-
ionali y7 o he policy (e.g., Gue e o, 2021). Fo exam-
ple, he de elopmen o a na u e- and animal- iendly
p oduc ion sys em con ains paymen s o o ganic a m-
ing, c op p oduc ion wi h es ic ed use o pes icides,
animal wel a e and educing concen a ed eed in milk
and mea p oduc ion. Each o hese schemes, in u n,
consis s o di e en measu es (i.e. paymen s ailo ed o
c ops o li es ock uni s). O e all, he Swiss di ec pay-
men sys em consis s o 104 di e en paymen s.8
The design and legal de elopmen o di ec pay-
men s is d i en by na ional au ho i ies, while he
esponsibili y o hei adminis a ion (con ol, pay-ou ,
cu s e c.) lies wi hin he Swiss can ons. Thus, he subsid-
ia i y o Swiss ag icul u al policy is a he low.
3.3. Ma ke Regula ion
Ma ke egula ions in Swi ze land a e based on he
ollowing ou pilla s: i) he egula ion o impo s, ii) he
7 Addi ionali y implies ha he di ec paymen imp o es en i onmen al
ou comes compa ed o he baseline (e.g., business as usual).
8 No e ha hese paymen s a e o en cha ac e ised by complex sub-
s uc u es and condi ions, so he complexi y is e en highe han he 104
paymen schemes.
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Robe Hube , Nadja El Benni, Robe Finge
Table 1. O e iew o di ec paymen s in Swiss ag icul u e (as o 2022).
Objec i e Paymen o … No. o
measu es Measu es ailo ed o… Design
Budge
(million
CHF)
Sha e
(2021)
Ensu ing ood
supply P oducing ood on
ag icul u al land 8
P oduc ion zones (dec easing
wi h al i ude); lowe paymen s
o a eas unde he biodi e si y
scheme; addi ional paymen o
c op o a ion a ea
Ac ion-based scheme (paymen
pe ha o ag icul u al land) 1078 39%
Landscape
main enance
Cul u al landscapes 5P oduc ion zones (inc easing
wi h al i ude; ze o o lowlands)
Ac ion-based scheme (paymen
pe ha o ag icul u al land) 140 5%
S eep slopes and e y
s eep slopes 7
Di e en g adien s o s eepness
(and speci ic paymen s o
g apes)
Ac ion-based scheme (paymen
pe ha o ag icul u al land) 149 5%
Summe ing pas u es 6
Speci ic animals (ca le sheep)
and di e en ia ing be ween a ms
ha send o ecei e animals o
summe ing
Ac ion-based scheme (paymen
pe li es ock uni li ing 100 days
on summe ing pas u es)
239 9%
Biodi e si y
conse a ion
A eas ha suppo
biodi e si y main enance 17
P oduc ion zones and ype o
biodi e si y elemen o measu e
(e.g. less in ensi ely used
g assland, lowe ing allows,
ees)
Ac ion-based scheme (paymen
pe ha; elemen s like ees a e
con e ed on a ha basis)
159 6%
A eas ha suppo
biodi e si y o high
quali y
17
P oduc ion zones and
biodi e si y elemen s. No
paymen s o measu es on
c opland
Resul -based scheme (paymen
pe ha o a ce ain quali y, i.e.
minimal numbe o a e species
ound)
163 6%
Agglome a ion bonus 6P oduc ion zones and
biodi e si y elemen s
Collabo a i e paymen scheme
(paymen pe ha)* 113 4%
Landscape
quali y Landscape quali y 4P ojec goals (i.e. ecological
elemen s o land-use ypes)
Collabo a i e paymen scheme
(paymen pe ha o li es ock uni
on summe ing pas u es)*
147 5%
Sus ainable
p oduc ion
sys ems
O ganic ag icul u e 3C ops ( ege ables and g apes,
o he c ops and g assland)
Ac ion-based scheme (paymen
pe ha) 67 2%
Ex ensi e p oduc ion o
ce eals 1 -
Ac ion-based scheme o c op
p oduc ion wi hou pes icides,
excep o he bicides (paymen
pe ha)
36 1%
G assland-based milk and
mea (GMF) 1 -
Ac ion-based scheme ha
es ic s he concen a ed use o
oughage-consuming animals and
he p opo ion o maize silage
om a able land (paymen pe ha
o g assland)
112 4%
Animal- iendly housing
sys ems 3Animal ype (pigs, poul y, ca le
and sheep/goa s)
Ac ion-based scheme (paymen
pe li es ock uni ) 98 3%
Animals unde ee- ange
p oduc ion sys ems 7Animal ype Ac ion-based scheme (paymen
pe li es ock uni ) 198 7%
Resou ce
e iciency Ag icul u al p ac ices 19
Ag icul u al p ac ices (di ec
sowing, p ecision ag icul u e
echniques, wash-up sys ems in
pes icide applica ions, educed
ni ogen in eed o pigs)
Ac ion-based scheme (paymen
pe ha o li es ock uni ) 43 2%
To al 104 2’732 100%
*Fa me s ecei e a bonus paymen on op o he ac ion-based paymen i hey designa e land o conse a ion ha is in close p oximi y o
neighbou s’ conse a ion a eas. Eligibili y depends on he p ojec (de ined by a me s, can ons, a m ad iso s and membe s o ecological
planning i ms). Da a a e om OECD PSE (OECD, 2022). Fo de ails o he di e en paymen s, e e o he online supplemen a y ma e ial
C2. No e ha in 2023, he e ha e been u he adjus men s in di ec paymen schemes (e.g. Mack, Finge , Ammann, & El Benni, 2023).
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Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
abandonmen in moun ain egions and ii) he loss o
ag icul u al land o se lemen expansion in he low-
lands. The explici goal o he di ec paymen s o land-
scape main enance is o educe annual land abandon-
men by 1400 hec a es, o oughly 20% o he cu en
a e. Howe e , land abandonmen is no moni o ed on
a egula basis, and hus, an e alua ion o he measu es
emains di icul . The in oduc ion o he paymen s,
howe e , s abilised he numbe o animals sen o sum-
me ing pas u es, despi e p edic ions ha he educ ion
would con inue (He zog & Seidl, 2018; Schulz, Laube ,
& He zog, 2018). Land abandonmen is he e o e much
less eminen , compa ed o in o he Eu opean moun ain
egions (Schi pke, Tasse , Lei inge , & Tappeine , 2022).
Finally, he e alua ion o he landscape quali y paymen s
implied ha a me s ealise wind all gains wi h li le
en i onmen al addi ionali y (Mann e al., 2023; S eige ,
Lü hi, Schmi , & Schüpbach, 2016b).
G eenhouse gas emissions: The amoun o g een-
house gas emissions educed by 11.5% wi h he in oduc-
ion o he di ec paymen sys em (7.3 million CO2eq
o 6.5 million CO2eq). The main easons o his we e
a educ ion in he animal he d and dec easing inpu s
o mine al ni ogen (Lei eld & Fuh e , 2005) a e he
in oduc ion o he c oss-compliance s anda ds. Since
hen, emissions ha e emained s able, despi e he goal
o educe ag icul u al g eenhouse emissions by 40% by
2050 compa ed o he emission le el in 1999 (FOAG e
al., 2023).
Ni ogen and phospho us: The in oduc ion o
c oss-compliance measu es o all Swiss a ms educed
he ni ogen and phospho us pollu ion o g ound and
su ace wa e in he i s yea s o he new policy a he
beginning o he cen u y (He zog e al., 2008; Kuppe ,
Bonjou , & Menzi, 2015). Thus, inc easing en i onmen-
al s anda ds o all a ms has had a majo e ec on he
o e all ecological pe o mance o he ag icul u al sec-
o . The main le e age came om he egula ion ha all
a ms should comply wi h he balanced use o nu ien s
(i.e. he annual ni ogen and phospho us balance needs
o be lowe han 110% o c op equi emen s) o ecei e
di ec paymen s. Howe e , om he ini ial educ ion
un il abou 2005, phospho us and ni ogen su pluses
emained cons an . By 2020, he o al ni ogen su plus
amoun ed o mo e han 80,000 . In ce ain egions in
Swi ze land wi h high animal densi y (see e.g. Spö i, El
Benni, Mack, & Finge , 2023), he ae ial deposi ion o
ni ogen had isen o abo e 40 kg pe ha pe yea (Reu i-
mann, Eh le , & Schäppi, 2022). Beyond he implemen-
a ion o c oss-compliance measu es, poli ical e o s
o educe nu ien load in Swiss ag icul u e ha e been
less success ul. Fo example, he g ass-based milk and
mea p oduc ion scheme, which aims o educe he use
o concen a e in oughage-consuming animals, did no
educe ni ogen su pluses bu c ea ed wind all gains
o pa icipa ing a ms (Bys icky, B e sche , Scho i, &
Mack, 2023; Mack & Hube , 2017; Mack & Kohle , 2019).
The inc eased sha e o sus ainable p oduc ion p ac ic-
es such as o ganic p oduc ion (Necpalo a e al., 2018;
Nemecek e al., 2011; Schade e al., 2013; Zimme mann,
Baumga ne , Nemecek, & Gailla d, 2011) has also no
subs an ially dec eased nu ien load a he sec o al le -
el. The nex policy e o m a ge s a educ ion o 20% o
phospho us and ni ogen su pluses in Swiss ag icul u e
by 2030, compa ed o he mean emission le els be ween
2014 and 2016.
Pes icides: A he beginning o his cen u y, Swiss
ag icul u al policies did no ocus explici ly on he isks
om pes icides, despi e hei b oad applica ion in all
majo Swiss c ops (de Baan, Spyche , & Daniel, 2015).
Policy goals o g oundwa e pollu ion (i.e. maximum
o 0.1 µg o pes icides pe li e o g oundwa e ) ha e
been achie ed in he majo i y o moni o ing loca ions
(FC, 2017). In con as , pes icide loads in small su -
ace wa e bodies we e ound o be o en abo e he legal
h esholds (Spyche e al., 2018). This igge ed socie al
and poli ical deba es and inally new poli ical ini ia i es
such as a na ional ac ion plan and new di ec paymen
p og ammes ha also included public-p i a e coope a-
ion (e.g., Mack e al., 2023; N. Möh ing & Finge , 2022;
Schaub, Hube , & Finge , 2020). Howe e , he moni o -
ing and e alua ion o hese e o s emains a challenge,
e.g. due o da a a ailabili y ega ding de ailed pes icide
use (simila o he EU e.g., Mesnage e al., 2021) and
he complex assessmen o heal h and en i onmen al
impac s (N. Möh ing e al., 2023). The mos ecen pol-
icy goal is o educe he isks om pes icides by 50% by
2027, compa ed o he si ua ion in 2012–2015 (Finge ,
2021; Mack e al., 2023).
4.3. Social sus ainabili y dimension: decen alised se lemen ,
amily a ming, income secu i y, adminis a i e bu den
Despi e a m s uc u al change, ag icul u e is s ill
an impo an pilla o Swiss u al economies, espe-
cially in he moun ain egions (Ecoplan & HAFL, 2016;
Flu y, Hube , & Tasse , 2013; Riede e al., 2004). New
policy ins umen s ocusing on in es men suppo
along he whole u al alue chain success ully suppo
he economic iabili y o many a ms (Flu y, Abegg,
& Jeanne a , 2017). Mo e impo an ly, while he e is a
con inued discussion abou wha amily a ms imply
(Gua ín e al., 2020), he exis ing policies suppo con-
inuous e-in es men in a m s uc u es. The mean

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Robe Hube , Nadja El Benni, Robe Finge
a m size in Swi ze land is 21 hec a es (FOAG, 2022b).
The dualis ic de elopmen o a m s uc u es (i.e. an
inc ease in e y la ge and small a ms combined wi h
a dec ease o mid-sized a ms) is much less p onounced
in Swi ze land han in o he coun ies (Bokushe a &
Kimu a, 2016).
Table 4. Assessmen o policy e o ms, policy implica ions and lessons lea ned om Swiss ag icul u al policy.
E alua ions* Assessmen (wha has wo ked and wha no ?) Lessons lea ned Implica ion o
u u e e o ms
[7], [8], [11], [13],
[17], [22], [31], [33] S abilisa ion o a m ga e p ices and a m incomes
Policy is e ec i e wi h espec o main ain a me s’
li elihoods.
Bo de p o ec ion and di ec paymen s ha e a
high-income ans e e ec .
Inc eases in
e iciency
needed
[5], [7], [8], [11]
Sel -su iciency main ained despi e g owing
popula ion; p oduc ion a ge s (in calo ies) a e
me
The a ming sec o can s eadily imp o e
p oduc i i y.
[20], [21], [28], [32] Slowing o s uc u al change Public policy main ains small-scale a ming
s uc u es.
[1], [5], [7], [8], [9],
[13], [16], [17], [31],
[33]
High cos s o consume and/o axpaye s
The e is low e iciency in public suppo .
[19], [21], [24], [25],
[31], [32]
Ru al iabili y is main ained, bu only wi h high
public spending
[3], [19] Many en i onmen al goals wi h unclea a ge
alues o indica o s The e is a lack o ocus on unding.
Cohe ence
equi ed
[14], [16], [30] T ade-o be ween p oduc ion (in calo ies) and
en i onmen al a ge s (N, P, GHG e c.)
The e is he po en ial o e-alloca e unds (i.e.
public unding o public goods).
[20], [21], [23], [25] Con inuous e-in es men in a m s uc u es Re-in es men needs o be aligned wi h
en i onmen al goals.
[7], [9] Ren s o up- and downs eam ac o s The e is a need o coo dina ion be ween ma ke
and policy in e es s.
[6], [16], [27], [30]
Ni ogen, phospho us and g eenhouse gas
emissions s able a e an ini ial dec ease wi h
policy e o m
Fo cing a me s o comply wi h minimal s anda ds
has a le e aging e ec on he esul s indic o s. S eng hening
c oss-
compliance
[6], [15], [27], [30] En i onmen al a ge s (i.e. pes icide load o
g eenhouse gas o ammonia emissions) no me
Inc easing s anda ds can help o achie e
en i onmen al a ge s.
[1], [4], [10], [14],
[18], [26], [30]
Biodi e si y p og amme con ibu es o hal ing
biodi e si y loss
Exis ing a ge ing and ailo ing p o ide he basis
o e ec i e biodi e si y conse a ion.
Suppo ing
di e en ia ion
[1], [2], [10], [12],
[24], [26]
Mos en i onmen al a ge s a e only me
quan i a i ely (i.e. ou pu indica o s) and no
quali a i ely (i.e. esul indica o s)
Fu he e o s a e needed o imp o e he quali y
o exis ing biodi e si y conse a ion a eas.
[1], [11], [15], [18],
[26]
P og ammes suppo ing en i onmen ally iendly
a ming c ea e wind all e ec s
A shi o esul s-based paymen s (i.e. inc easing
a me s’ disc e ion) could inc ease he e iciency o
he p og ammes.
[3], [4], [12], [29] High adminis a i e bu den Digi alisa ion is needed o econcile adminis a i e
bu den and di e en ia ion o policy incen i es.
*The numbe s e e o he e alua ion sou ces in Table 3 i.e. [1] Wueppe and Hube (2022); [2] Meie e al. (2021); [3] EFK (2021); [4]
Hube e al. (2021); [5] Feige, Riede , Annen, and Roose (2020); [6] Mack and Kohle (2019); [7] Hillen (2019); [8] Hillen and Von C a-
mon-Taubadel (2019); [9] Wey and Gösse (2019); [10] Fon ana e al. (2019); [11] A Möh ing, Mack, Zimme mann, Mann, and Fe jani
(2018); [12] Jenny, S ude , and Bossha d (2018); [13] Finge e al. (2017); [14] Hube , Flu y, Meie , and Mack (2017); [15] Mack and Hube
(2017); [16] Schmid e al. (2017), Schmid , Mack, Mann, and Six (2021), Schmid , Necpalo a, Mack, Möh ing, and Six (2021); [17] Loi
e al. (2016); [18] S eige , Lü hi, Schmi , and Schüpbach (2016); [19] Su e e al. (2016); [20] EFK (2015); [21] Hube , Meie , and Flu y
(2014); [22] El Benni, Finge , and Mann (2012); [23] Flu y, Ge be , Giuliani, and Be ge (2012); [24] Laube , Calab ese, Von Fel en, Fische ,
and Schulz (2011); [25] Flu y and Pe e (2011); [26] Mann (2010); [27] Felix He zog, P asuhn, Spiess, and Richne (2008); [28] B. Meie ,
Giuliani, and Flu y (2009); [29] Buchli and Flu y (2006); [30] Mann (2003); [31] Mann and Mack (2004), [32] Riede , Buchli, and Kopain-
sky (2004); [33] Koch (2002).
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In addi ion, he es ic i e law on u al land has wo
impo an implica ions. Fi s , a m succession in Swi -
ze land is almos exclusi ely es ic ed o he descend-
an s o a me s. Second, a ms a e kep among ami-
lies o p o i om iscal ewa ds, zoning decisions o
ad an ages ela ed o li ing ou side he building zone.
Thus, mos a ms ha lea e he sec o a e small and a
he end o he gene a ional cycle (e.g., Zo n & Zimme ,
2022). O e all, he egula ions wi h espec o s uc u -
al changes in Swiss ag icul u al policy ha e led o high
in es men on a sec o le el, despi e small a m s uc-
u es and highly egula ed land ma ke s, wi h he con-
sequence being he amily-based and con inuous, a he
han dualis ic, de elopmen o a m s uc u es.
While income inequali y in Swiss ag icul u e has
inc eased as a consequence o he decoupling o p ice
and income policies (especially be ween lowlands and
hilly and moun ain egions), he in oduc ion o he
di ec paymen sys em has posi i ely in luenced income
s abili y by dec easing he a iabili y o a m e enues
and household income in Swiss ag icul u e (El Ben-
ni & Finge , 2013; El Benni, Finge , & Mann, 2012; El
Benni, Finge , Mann, & Lehmann, 2012). E en hough
di ec paymen s also aim o suppo a m incomes, he
income goals o ag icul u al policies canno be con-
side ed o ha e been achie ed, and o - a m income is
an indispensable di e si ica ion s a egy o Swiss a m
households (El Benni & Schmid, 2021). Despi e ongoing
discussions abou he in e p e a ion and measu emen
o a m incomes (Finge & El Benni, 2021), he s ong
go e nmen al suppo has secu ed s able a m incomes
in Swiss ag icul u e o e ecen decades. In his con-
ex , Zimme and Zo n (2022), using a spa ial eg es-
sion discon inui y design, showed ha di ec paymen s
inc eased amily a m employmen . The analysis poin ed
o no only he economic bu also he social side-e ec s
o he cu en di ec paymen sys em because he addi-
ional labou o ce o en consis s o non-sala ied emale
household membe s. Wi hou a wage, hese amily mem-
be s a e no su icien ly p o ec ed socially, an issue ha
should gain impo ance in he discussion on he u he
de elopmen o ag icul u al policy.
Finally, a lipside o he en o ced condi ionali y o
he Swiss di ec paymen s sys em is ha a high admin-
is a i e bu den is placed on bo h he a me s and he
go e nmen (Mack, Ri zel, Hei kämpe , & El Benni,
2021; Ri zel, Mack, Po mann, Hei kämpe , & El Benni,
2020). While he ac ual cos s o moni o ing and imple-
men ing ag icul u al policies a e less han 5% o he
o al budge o ag icul u e, a me s pe cei e admin-
is a ion o be a bu den (El Benni e al., 2022; Mack,
Kohle , Hei kämpe , & El-Benni, 2019).
5. DISCUSSION: LESSON LEARNED AND IMPLICA-
TIONS FOR FUTURE POLICY DEVELOPMENT
In his sec ion, we discuss indings om ou e iew
wi h espec o he gene al lessons lea ned om Swi -
ze land’s expe ience and he ollowing ou implica ions
ha may p o ide en y poin s o he discussion o spe-
ci ic policy design ea u es ha would be ans e able
also o o he coun ies. Fi s , he economic and social
goals ha e la gely been me , bu he cos s o consume s
and axpaye s a e high (app oxima ely CHF130,000 pe
a m pe yea , o ~CHF6,000 pe hec a e o ag icul u al
land pe yea ). Thus, inc easing he e iciency o Swiss
ag icul u al policy is key. Second, p og ammes and
ins umen s need o be mo e cohe en ly embedded in
he ood and ag icul u al sec o no only o econcile he
economic and en i onmen al goals bu also o imp o e
collabo a ion along he alue chain. Thi d, s anda ds o
all a ms ha e inc eased he o e all ecological pe o -
mance o he ag icul u al sec o . S eng hening o c oss-
compliance measu es has he po en ial o p o ide alua-
ble le e age and suppo o he ag i-en i onmen al ields
ha ail o mee hei a ge s. Fou h, di e en ia ing
a ge s (e.g. in space) and inc easing a me s’ disc e ion
o e how o achie e goals p o ide p omising app oaches
o ealise he p emise o public unding o public goods.
5.1. Inc easing e iciency
One o he key p econdi ions o he Swiss policy
sys em is i s es ic i e bo de p o ec ion and gene ous
go e nmen al budge o ag icul u e. High a m-ga e
p ices and la ge unds o di ec paymen s ha e c ea ed a
sys em ha e ec i ely suppo s he achie emen o some
policy a ge s, such as a ood supply, landscape main e-
nance and con ibu ion o decen alised se lemen . The
suppo has also allowed he a ming sec o o s eadily
inc ease labou p oduc i i y and o e-in es in small-
scale in as uc u e (main aining amily-based, peasan
a m s uc u es).
Howe e , he e iciency o he sys em is low, includ-
ing he paymen s o ensu ing ha ood supplies a e
e ec i e in inc easing calo ie p oduc ion and o main-
aining a able land o c op p oduc ion (A. Möh ing e
al., 2018). Up o 25% o hese paymen s could be sa ed
i c i e ia o he han he numbe o calo ies p oduced
we e conside ed (e.g. main aining p oduc i e land wi h-
ou calo ie a ge s; (A. Möh ing & Mann, 2020). Also,
he a ge ing and ailo ing o policies has led o wind-
all gains o a me s. The design o a biodi e si y p o-
g amme combining di e en schemes, o example, c e-
a es la ge wind all e ec s (Wueppe & Hube , 2022).
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Robe Hube , Nadja El Benni, Robe Finge
This implies ha i he p og amme has addi ional en i-
onmen al bene i s, he implemen a ion o he co e-
sponding di ec paymen comes wi h high public cos s.
The es ic ed a m s uc u al change also implies ha
a ms wi h low compe i i eness emain in he sec o
(Su e e al., 2016).
Thus, inc easing e iciency and educing he wind all
e ec s o ag i-en i onmen al ins umen s would pe mi
unds o be ealloca ed o mo e e ec i e ins umen s
and hus boos he en i onmen al impac o ag icul u al
p og ammes. In i s la es assessmen o Swiss ag icul-
u al policy, he OECD ecommended ha Swi ze land
u he libe alise i s bo de p o ec ion and educe ade
ba ie s while also educing he o e all le el o gene al
di ec paymen s (OECD, 2015). This should allow a m-
e s o espond o ma ke signals, inc ease hei compe i-
i eness and b ing abou g ea e e iciency in he Swiss
policy app oach. How o align ma ke libe alisa ion and
he suppo o peasan a m s uc u es o he con i-
bu ion o decen alised se lemen in his con ex is an
impo an opic o u u e esea ch.
5.2. Imp o ing cohe ence
The accep ance o con lic ing goals and ade-o s in
ag icul u al policy-making c ea es challenges o policy
cohe ence (Code oni, 2023; Eyho n e al., 2019; Mann
& Kaise , 2023). T ade-o s a e inhe en in he ag icul-
u al and ood sys em, and he e is no simple s a egy
ha would allow all posi i e and nega i e ex e nali ies
om ag icul u al p oduc ion o be disen angled. The key
challenge in Swiss ag icul u al policy is he con lic ing
goals ha lead o ade-o s. This in ol es, o example,
he p oduc ion goals (measu ed in calo ies o deg ee
o sel -su iciency), he main enance o decen alised
peasan a m s uc u es and he en i onmen al a ge s
( educ ions in emissions and he suppo o biodi e -
si y conse a ion a eas). Gi en he cu en ine icien-
cies in suppo ing he ag icul u al sec o , ealloca ing
unds, and s onge ocusing on he p inciple o “public
unding o public goods” could alle ia e he ade-o s
be ween hese goals (e.g., Ba eman & Balm o d, 2018;
S. Wunde e al., 2018). This includes, o example, ha
ins umen s ha p omo e p oduc ion include sus ain-
abili y s anda ds o ha suppo in es men should be
aligned o en i onmen al o animal wel a e goals. A be -
e alignmen o policies would no make he inhe en
ade-o s disappea , bu i could ce ainly imp o e he
e iciency o he public money spen on ag icul u e.
Fu he mo e, some o he wind all gains om ag i-
cul u al policy suppo end up in up- and downs eam
companies wi h a es ed in e es in main aining p o-
ec ion. Thus, be e policy cohe ence should no only
ocus on aligning policy ins umen s bu also include
he ac o s along he alue chain. In his con ex , he link
be ween public incen i es and p i a e sus ainabili y ini-
ia i es (e.g. ough labelling) is key (Poppe & Kou s aal,
2020). Fo example, he de elopmen o a new, pes icide-
ee s anda d o whea p oduc ion in Swi ze land has
allowed he c ea ion o syne gies be ween public and
p i a e (ma ke ) goals, whe e a me s ecei e compensa-
ion o no using pes icides om go e nmen al di ec
paymen s and p i a e p ice ma k-ups (N. Möh ing &
Finge , 2022).
The poli ical sys em in Swi ze land enables pa ial
policy success o di e en in e es g oups when nego-
ia ing policy e o ms (Me z e al., 2020). Toge he wi h
public plebisci es on ag icul u al policy ques ions (Hube
& Finge , 2019), his can ha e he e ec ha he esul -
ing policy has o ole a e ce ain con lic s in he o e all
policy. He e, he alignmen o ag icul u al policies wi h
mo e cohe en s a egies, such as a common ood policy
ha includes a wide ange o s akeholde s (De Schu -
e , Jacobs, & Clémen , 2020) wi hin speci ic a eas such
as pes icides (N. Möh ing e al., 2020) and ni ogen use
(Kan e e al., 2020) is impo an . Beyond he in eg a-
ion o s akeholde s along alue chains, a ood sys em
policy could also include demand-side policy ins umen s
o sus ainable ood consump ion (Ammann, A benz,
Mack, Nemecek, & El Benni, 2023), conside sus ain-
abili y s anda ds in global ag i- ood supply chains (e.g.,
Meemken e al., 2021) o suppo sus ainable public ood
p ocu emen (e.g., Schlei e , Lande , & Moschi z, 2022).
This could p o ide he basis o ini ia e he necessa y
ans o ma ion o he ag icul u al and ood sys em. In
Swi ze land, he policy goals o mula ed in A icle 104a
p o ide a cons i u ional basis o he u u e de elopmen
o such a ood policy app oach ha could also be exem-
pla y o o he coun ies.
5.3. S eng hening c oss-compliance
S ic c oss-compliance measu es p o ide an e ec-
i e ool o achie e en i onmen al ou comes. While his
had also been discussed in he con ex o he CAP (e.g.,
Pe’e e al., 2019), he Swiss example clea ly shows ha
he condi ionali y o paymen s is e ec i e in educing
nega i e en i onmen al ex e nali ies and inc eases he
p o ision o posi i e ex e nali ies in ag icul u al p oduc-
ion. The in oduc ion o he p oo o ecological pe o -
mance as c oss compliance measu e in Swi ze land has
had a le e aging e ec on he en i onmen al pe o -
mance o Swiss ag icul u e (He zog e al., 2008). S ic e
condi ions o he p oo o en i onmen al pe o mance
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Bio-based and Applied Economics 13(2): 121-146, 2024 | e-ISSN 2280-6172 | DOI: 10.36253/bae-14214
could, unde ce ain ma ke and p oduc ion scena ios,
ac ually con ibu e o he be e achie emen o en i-
onmen al a ge s wi h li le educ ion in a m incomes
(Schmid e al., 2019).
Howe e , he e a e also c i ical aspec s ha need
o be discussed in his con ex . Inc easing p oduc ion
s anda ds ia c oss-compliance measu es migh c e-
a e leakage e ec s i.e. some s ic e egula ions would
inc ease he numbe o non-complying a ms— ha is,
a ms ha do no ecei e di ec paymen s bu also do no
comply wi h c oss-compliance egula ions; (Schmid e
al., 2019). While he o e all s ong suppo o ag icul u e
in Swi ze land a enua es his isk o a ce ain ex en ,
since a ms would lose a conside able amoun o hei
income sha e, his would be mo e p essing in coun ies
wi h lowe o e all suppo . This implies ha command
and con ol ins umen s could eplace c oss-compliance
measu es, bu hei implemen a ion would ce ainly c e-
a e mo e opposi ion in he ag icul u al sec o (E ja ec
& E ja ec, 2021). In addi ion, i could also c ea e leak-
age o nega i e en i onmen al e ec s o o he coun ies
i impo s we e o inc ease due o he s ic e egula ion
(Bys icky, Nemecek, K ause, & Gailla d, 2020). Final-
ly, ou e iew does no p o ide a di ec compa ison o
c oss-compliance measu es be ween Swi ze land and
o he coun ies. While some s udies ha e looked a ce -
ain commonali ies and di e ences (BAFU, 2023; Bau
& Ni sch, 2013; Ni sch & Os e bu g, 2005), he ex en o
which Swi ze land, h ough i s expe iences wi h c oss-
compliance, could se e as a ole model o o he coun-
ies would ce ainly need addi ional esea ch.
5.4. Suppo ing di e en ia ion
The a ge ing and ailo ing o policy incen i es in
space, ime and ac oss a m ypes allows o he ans-
pa en and e icien suppo o public goods p o ided by
he a ming sec o . The Swiss case shows he ad an ages
o such policy designs ha y o implemen he idea o
“public unding o public goods”. This allows us o di -
e en ia e be ween egions wi h di e en p oduc ion
condi ions, which is a p e equisi e o he success ul sup-
po o local public goods p o ided by ag icul u e, such
as landscape main enance and biodi e si y conse a ion
(Gawi h & Hodge, 2019; Na a o & López-Bao, 2018).
In addi ion, he high deg ee o a ge ing and ailo ing
(in combina ion wi h he c oss-compliance measu es)
in he Swiss di ec paymen sys em enables a enua ion
o he endency o ad e se selec ion in o olun a y ag i-
en i onmen al p og ammes, which is key o economic
incen i es o public good p o ision (e.g., S en Wunde ,
Bö ne , Ezzine-de-Blas, Fede , & Pagiola, 2020).
A s ep o wa d in paymen di e en ia ion would be
o ex end he use o esul s-based incen i es (i.e. pay-
ing a me s o achie ing a ge s and no o ce ain
aspec s o managemen ). Recen s udies ha e shown a
p omising e ec on he e ec i eness and e iciency o
a mo e widesp ead use o such esul s-based ag i-en i-
onmen al schemes in Swi ze land (e.g., Hube , Spä i, &
Finge , 2023; Hube e al., 2021; K e , Finge , & Hube ,
2023; Mack e al., 2020; Wueppe & Hube , 2022). These
schemes would also enable a me s o use hei own dis-
c e ion o e how o achie e ou come goals (e.g., Ehle s,
Hube , & Finge , 2021).
The lipside o inc easing a ge ing and ailo ing o
achie e e iciency gains is mo e complex sys ems wi h
po en ially high adminis a i e bu dens (e.g., El Benni
e al., 2022). He e, he use o digi al echnologies and
he digi alisa ion o en i e ag icul u al policies plays
a key ole (Ehle s e al., 2022; Ehle s e al., 2021). This
could no only educe he adminis a i e bu den bu
also c ea e new oppo uni ies o measu e he ou comes
o ins umen s and hus es ablish esul s-based o collec-
i e policy schemes ha do no ha e o ely on con ols
on indi idual a ms.
6. CONCLUSION
The e a e ou implica ions om hese Swiss expe i-
ences o policymake s and esea che s alike. Fi s , e i-
ciency mus be inc eased o e-alloca e unds owa ds
p og ammes ha e ec i ely suppo he p o ision o
public goods o educe nega i e ex e nali ies. Second,
he cohe ence o di e en policy p og ammes is key.
Inc easing unds o public goods migh be a neces-
sa y condi ion o a mo e sus ainable ag icul u al sec-
o , albei one ha is no su icien . The Swiss case shows
ha he coo dina ion o policies along alue chains and
ac oss sec o al policies and s akeholde s (i.e. in he sense
o a “ ood sys em policy”) is indispensable o mak-
ing ag icul u e and ood p oduc ion mo e sus ainable.
Thi d, c oss-compliance measu es (i.e. minimal econom-
ic, en i onmen al, and social s anda ds) o ecei ing
go e nmen al suppo ha e an impo an le e age e ec .
E en hough we obse ed ha se ing hese s anda ds
can lead o poli ical con lic s, hey ha e made a decisi e
con ibu ion o imp o ing he en i onmen al pe o -
mance o Swiss ag icul u e. Fou h, he examina ion o
Swiss ag icul u al policy sugges ha some en i onmen-
al a ge s can be achie ed while allowing o wind all
gains om a me s’ p o ision o en i onmen al public
goods. Ou conclusion is no ha o he coun ies should
also apply p og ammes wi h low addi ionali y, espe-
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Robe Hube , Nadja El Benni, Robe Finge
cially gi en he ac ha hey migh ace much s ic e
budge cons ain s, bu a ca e ully di e en ia ed ag i-
en i onmen al policy p og amme ha ocuses on land-
scape, biodi e si y, animal wel a e and ecosys em se ic-
es should also allow o main aining economic iabili y
and u al incomes.
Ou e iew and he de i a ion o he lessons lea ned
imply wo impo an esea ch gaps. Fi s , mo e s ud-
ies ha e ec i ely p o ide scien i ic e idence o poli-
cymake s a e needed (El Benni, G o e mann, & Finge ,
2023). Special emphasis shall be on scien i ically sound
app oaches o policy e alua ion, including inc eased
a emp s o es ima e he causal e ec o policies. This
is o en hampe ed, howe e , by he complex egula o y
en i onmen and he many in e ac ions be ween p o-
g ammes and ins umen s ha a e o en in oduced
a he same momen in ime. Second, u u e esea ch
could ocus on he ans e abili y o hese lessons, espe-
cially wi h espec o he speci ic e ec o policy mixes
and how an in eg a ed policy amewo k could alle ia e
ade-o s in he join p o ision o ood and ecosys em
se ices. Ou e iew is con ex -speci ic, and we can-
no d aw di ec implica ions o o he coun ies (e.g.
o coun ies wi h lowe inancial esou ces o suppo
ag icul u e). Howe e , he implica ions om he lessons
lea ned in Swiss ag icul u al policy ha e been mi o ed
in many ongoing p oposals on how o imp o e he CAP
(e.g., Guyoma d e al., 2023; Kelemen e al., 2023; Pe’e e
al., 2020). Thus, p o iding u he e idence will also be
o alue beyond Swi ze land.
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