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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.

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