Multifunctional Agriculture : How To Provide Incentives To Farmers?

In this paper we anlyse the meaning of multifunctionality at farm level. After defining the concept, a number of examples are given to illustrate problems in delivery of non-commodity outputs. Based on a general micro-economic model, it si shown that farmer’s behavior will depend on personal characteristics as well as on relative prices. Next, Instruments to give incentives to farmers to engage in the delivery of non-commodity outputs are discussed as well as the possibility of collective action. The paper ends with some conclusions and recommendations for further research and discussion.