How Efficient is the French Less‐Favoured Area Programme?

Abstract

SummaryEvaluation of the French Less Favoured Area (LFA) agricultural programme over the period 2007–2013 calls into question the cost‐efficiency of this multi‐objective programme. This article confirms the multiplicity of objectives assigned to this programme, namely to maintain a sustainable agriculture in mountainous areas through income support for farmers in these disadvantaged areas; and thus more indirectly, to enhance the attractiveness of these agricultural areas. The environmental assessment of farms in the FADN network showed that the French LFA programme did help to support the most environmentally friendly dairy and cattle farms in mountainous areas via support for the income levels of these livestock farms. However, the analysis also shows that the LFA criteria are not sufficiently specific to have the required impacts on grassland management practices that would lead to specific defined environmentally friendly practices and improvements. Overall, and in spite of its longstanding and multi‐objective nature, the French LFA programme has been effective both from an economic perspective in that it inspires confidence among economic agents; and also to some extent from a general environmental perspective by providing support for farms which hold most of the permanent grassland, and associated amenities.