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Abstract
This article evaluates the impact of an extension programme that financially rewards
farmers for participation. The evaluation focuses on programme participants who joined
after a financial reward was introduced and compares their farm performance to farmers
who chose not to join the programme. Farmers are assessed in relation to improvements
in financial, grassland and breeding management over an observation period from 2008
and 2012. The results, based on a modified difference-in-difference estimator, reveal no
significant impact of the programme, albeit programme participants seem to have
improved their farm performance. Reasons for this finding are discussed and, given this
rather unique policy move, the study offers policy recommendations of broad relevance.