The Public Goods Bonus

Summary The Public Goods Bonus (PGB) is a model developed by Land Care Germany for environmentally oriented agricultural payments based on the principle of ‘public money for public goods’. The aim is to link direct payments to ecological services and to reward farmers through a flexible points system for measures in areas such as biodiversity, climate protection and water conservation. The measures are freely selectable and can be combined. Points per hectare are based on expected environmental impact. The total number of points a farmer accrues is multiplied by an annually determined monetary value to obtain the payment to the farm. An expanded catalogue of measures comprises 29 options, some of which are performance‐based. A bonus for participating in several measures is foreseen. The model faces administrative challenges, for example in terms of evaluation, communication and regional adaptation. Regionalisation of the payments seems sensible in order to take into account differences in effectiveness, demand and implementation costs. The PGB has not been introduced as an eco‐scheme in Germany. However, the EU Commission’s proposals for the CAP from 2028 onwards could offer new opportunities for implementation – in particular through possible pillar integration and a new financial model.