Using the Bichel Committee's report as a source, this brief is a summary of farmers' loss of operating profits in relation to the transfer to pesticide free cultivation. The summary involves the case-area of Havelse Kildeplads, an area of drinking water reclamation situated at Frederikssund in the North of Zealand. In connection with the brief, alternative principles of estimating compensation in the case of voluntary reorganisation to pesticide free cultivation are discussed. In this connection the significance of risk and insecurity is also exposed, including the variation in levels of output between farmers. It is calculated that for crop holdings a mean loss of DKK 1,100 - 1,200 per hectare at 2003 price levels will take place. However, the de facto losses will vary from farmer to farmer. On the basis of an estimated variation in profit levels from holding to holding, the effects of four different compensatory models are compared. It is demonstrated that there is a significant difference in costs and efficiency between the four compensation models. In conclusion, from a welfare cost-effective point of view, it is hardly expedient to aim at compensation schemes that presume a complete termination of pesticide use.


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