Will Farmers Accept Lower Gross Margins for the Sustainable Cultivation Method of Mixed Cropping? First Insights from Germany

Abstract

A decline in the legume cultivation has contributed to the biodiversity loss within the agricultural production across Europe. One possibility to include legumes into the production and promote sustainability is mixed cropping with legumes and non-legumes. However, the adoption of mixed cropping is challenging for farmers and information about the profitability is scarce. If mixed cropping should become a widely established production method, it is essential to gain an understanding of famers’ evaluation of the profitability mixed cropping needs to reach. Therefore, this article provides first empirical insights into farmers stated willingness to accept gross margin changes compared to current production possibilities. Based on a survey with results from 134 German non-adopters conducted in 2018 we can distinguish conventional farmers with a positive, neutral and negative willingness to accept reductions in gross margins as the trade-off for ecological benefits. Using an ordered logistic model we find that risk attitude, risk perception, the number of measures performed for ecological focus areas, the farmer’s age and being located in the south of Germany influence their willingness to accept gross margin changes compared to currently produced cereals.