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The Implementation Costs of Agricultural Policies

image of The Implementation Costs of Agricultural Policies

Concerns about the cost of implementing and monitoring agricultural policies are mounting with the development of more decoupled and targeted policies. While these costs are inherent in the policy process, reducing them will bring benefits in terms of better use of public funds, and minimising the overall economic costs of policies. The report suggests ways to do so without compromising the aims of the policies. Ways to reduce costs include sharing experiences across agencies, regions or countries, exploiting already existing administrative networks, integrating government and private information systems, reducing the number of agencies and using the latest information technologies.

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A Case Study of the Policy-related Transaction Costs of Direct Payments in Switzerland

This case study presents an estimate of the transaction costs generated by the Swiss direct payment system. The costs are estimated for two case studies concerning the cantons of Grisons and Zurich, for which the implementation and control costs are assessed at five levels; namely the State, the canton, the control organisations, the borough, and the farm. While the costs accruing to public authorities and control organisations can be determined with exactitude, the numerous factors which influence costs as well as the differences between farms result in uncertainties when assessing labour expenditure and labour costs at farm level.

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