Impact of environmental land lease contract specification on implementation of nature inclusive farming

<ns3:p>Background Environmental Land Lease Contracts (ELLCs) are contracts in which farmers receive a discount on their rent upon implementing biodiversity measures. ELLCs gain more and more attention as a tool to help reversing biodiversity loss. However, it is unknown how different features of ELLCs might influence ELLC uptake, and, through that, biodiversity. Methods We explored how financial compensation, contract length, clarity of contract specification, and flexibility impact the uptake of extensive grassland through ELLCs by farmers, using an agent-based model (ABM). The ABM was parameterized based on a survey on the appreciation of contract elements, and was run for a wide range of scenarios for a case study in a meadow area in the north of the Netherlands. Results Under furthermore similar conditions, the contract specification can result in a change of the ELLC extensive grassland area ranging between over 60% decrease and over 60% increase. Financial compensation was the key factor for increased uptake, followed by contract length. Clear interactions between flexibility and financial compensation were found, where higher flexibility only results in more extensive grassland upon generous compensation. Learning from neighbours and from previous experiences with ELLCs can trigger positive feedback and boost the uptake of extensive grassland. Scenarios with ELLCs that resemble those offered by private landowners in the Netherlands result only in minor increases of the area of extensive grassland. Conclusions While ELLCs could contribute to more nature friendly farming, spatial coordination and sufficient incentives, from both public and private initiatives, are necessary to increase the participation of mainstream farmers.</ns3:p>