Coffee farmers' incentives to comply with sustainability standards

Abstract

Purpose This paper investigates the incentives to coffee farmers to participate in certification schemes that require improved agricultural practices. Design/methodology/approach The authors ran a choice experiment among 250 Brazilian coffee farmers in the state of Minas Gerais, Brazil. Findings The authors’ findings show that both cash and non-cash payments are likely to incentive farmers' participation in a certification scheme. Besides price premium, incentives as long-term contracts and provision of technical would encourage producers to adopt eco-certification schemes. Our results also suggest that non-cash payments may be appropriate substitutes to a price premium to some extent. Research limitations/implications The large coffee producers are over-represented in our sample compared to the population of Brazilian coffee farms. However, it seems reasonable to focus on these producers, as they are usually the ones who individually adopt strategies, since small farmers are induced by collective strategies (e.g. cooperatives). Social implications The result regarding technical assistance makes sense given that Brazilian farmers generally have poor access to rural extension services. Originality/value We contributed in the literature about adoption of sustainable agriculture practices analyzing the requirements and motivations for farmer participation in certification schemes. We also contribute private and public strategies to encourage the adoption of sustainable practices.