Economic impact of cross compliance in the field of animal welfare (Acts C18 and C16): assessment of animal welfare in two dairy farms, estimation of costs of improvements in housing and management, simulation of the economic impact of applying for animal welfare payments (measure 215)

Work undertaken within the MO.NA.CO. Project (National monitoring network for the environmental effectiveness of cross-compliance and the differential of competitiveness induced from it charged to agricultural enterprises) funded by the Ministry of Agricultural, Food and Forestry policies (MiPAAF) within the National Rural Network project under Action 1.2.2 'Interregional Development Laboratories' of the operational programme known as 'National Rural Network 2007- 2013'. Coord. Paolo Bazzoffi. Abstract The paper reports the results of assessment of animal welfare at farm level on two dairy cattle farms, identification of structural and management actions to improve the animal welfare and estimate of the costs of such actions; furthermore the economic impact of the potential support under measure 215 of the Rural Development Plan was also simulated. At the time of assessment, no severe break of compliance was detected at the two farms; however some weaknesses were identi- fied and improvement were proposed in order to maintain the current animal welfare status and avoid future failures. The two case studies showed that investments to improve animal welfare were partly self- funded in the mid and long term due to the higher milk yield and the better animal health that were expected as consequence; however, in the short term, a large part of expenses was fully borne by farmers if not supported by a public grant or higher market prices. The support provided by the measure 215 is effective in rewarding farmers who undertake to adopt standards of animal husbandry which go beyond the relevant mandatory standards.