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Abstract
In the ongoing debate of CAP reform, a new tool was proposed for farms that aims to create a
new market for ecosystem goods and services that may be provided by agriculture. The
mechanism of floor and trade (FT) assigns each holding a "minimum of environmental goods"
that must be provided at farm level to ensure sustainability and justifies the subsides received
from CAP. In this proposal we will analyse what might happen in a limited region (Veneto) with
the application of FT mechanism, given the geographical conditions and the structural situation
of farms, using FADN data. More precisely, we seek to quantify the regional supply curve of
environmental services, provided by agricultural activities in case of floor and trade
mechanism. We will use as a proxy the amount of carbon that could be sequestered by less
intensive farming systems such as grassland and pastures, compared with other more intensive
activities, in order to examine the trade-off between the economic goals of farmers and the
environmental benefits due to the land use change provided by FT. We will use as methodology
the Minimum Data (MD) approach in order to integrate the spatial heterogeneity of the
biophysical environment of the different agroecosystems, with economic behaviour of farmers in
case of the obligations imposed by the FT mechanism