In brief, one can state that it is a rare situation that a farmer can ensure agri-environmental goods at a social optimum in a free market at a maximum welfare, unless the farmer himself has high nonmonetary values.
One set of agricultural and forestry practices and standards including sparing an extra area for biodiversity or scenery are not optimal for an entire country. The key tradeoffs should be quantified locally.
The situation may be solved with the help of collaboration between private agents, society, and local governments, i.e., environmental community-based public-private partnerships.
At the same time, the key area of interaction is not the private agents, but rural areas as a complex of relations and core place for the agricultural and forestry activities, at participants´ and habitats´ level. The engagement and support of municipalities is an extremely important factor for the successful projects.
RUSFOR CONSULT 