A key issue for European agricultural policy is to secure sustainable production of food without compromising the role of farmland for conservation of biodiversity and production of public goods (Soussana et al. 2012). Increasing production through agricultural intensification threatens long-term sustainability of agriculture and also compromises biodiversity conservation and production of public goods such as recreation. As an alternative, agricultural production can be enhanced in a sustainable way by promoting supporting and regulating ecosystem services, such as nutrient retention, pollination and biological control (Bommarco et al. 2013). However, many of these ecosystem services are generated at spatial and temporal scales beyond individual farms and are therefore affected by the ‘tragedy of ecosystem services’ (Lant et al. 2008). The production of these services therefore requires farmer collaboration (Prager et al. 2012). To achieve this, there is a need to develop European agricultural policies beyond current cross-compliance and agri-environment schemes.
In some cases it may be possible to enhance farmers’ contribution to multifunctional landscapes by identifying and communicating ways in which agricultural production can be brought in line with public goods provision through innovative ecosystem management. In other cases it may be necessary to pay farmers for generating public goods. This second approach would represent a significant change in EU agricultural policy, particularly if large amounts of finance are to be diverted from current income support (Pillar I). To inform European policy development in this area, it is fundamental to understand the consequences of alternative polices on agricultural production and agricultural development on one side and the production of public goods on the other. It is also important that future polices take into account the landscape perspective necessary to benefit services provided by mobile organisms, by accounting for the need of coordination of farmers’ activities.