Why the Administrative Burden of Cross Compliance Matters Pourquoi la charge administrative de la conditionnalité est-elle importante Warum der Verwaltungsaufwand für die Cross-Compliance-Regelung wichtig ist

Abstract

The administrative burden imposed by the direct payment system is a major concern highlighted in recent farmers’ protests. Based on a survey of 808 Swiss farmers, we analyse farmers’ perceptions of the administrative burden associated with the direct payment system and how this affects the costs and farmers’ views and reactions to the policy. Our results show that the perceived administrative burden varies among farmers and is not strongly related to the actual time spent on forms. Well-trained and informed farmers find administrative tasks less burdensome. The bureaucracy involved in agricultural policy matters not only because it increases farmers’ perceived administrative burden but also because it leads to dissatisfaction with the government. Overall, we estimate the private administrative costs of cross-compliance obligations for Switzerland to be about 5 per cent of the annual Swiss budget for direct payments. To reduce farmers’ perceived administrative burden, policymakers should prioritise reducing compliance costs, which will also reduce psychological costs. Digitalisation can help achieve this outcome, but its success depends on farmers’ knowledge of information and communication technologies. Knowledge, administrative efficiency and perceived legitimacy are crucial for reducing non-compliance with direct payment regulations. Addressing these factors will help improve the effectiveness of agricultural policies.