D4.2 Ex-post evaluation of business models for improving soil health in agriculture

This report evaluates soil health business models in Swiss arable farming as part of the InBestSoil project. Drawing on a 2023/24 nationwide survey of 2,728 farms and econometric modelling, it assesses the effects of soil management practices on farm productivity and sustainability. The analysis is framed within a soil-health-based sustainable business model framework, specifically Archetype 6: Facilitate Sustainability Transition, which operationalises how farms can shift toward more sustainable models while accounting for behavioural and structural factors. Three core findings emerge. First, a productivity-soil health trade-off exists: intensive management boosts short-term yields but degrades soils over time. Second, a market failure prevails, as farmers rationally prioritise private returns while public benefits — carbon storage, biodiversity — remain undervalued. Third, experience and farm scale matter significantly, with larger, more experienced operations better positioned to adopt sustainable practices efficiently. Methodologically, the study introduces an Arable Soil Management Index (based on the universal soil loss equation) fed into a stochastic frontier analysis to estimate yield and efficiency impacts. A practical output is a digital benchmarking app enabling farmers to compare their practices with peers and receive tailored guidance.The report concludes that policy must correct the market failure through instruments such as payments for ecosystem services and performance-based schemes, embedding soil health into both business and governance frameworks in support of the EU Mission Soil objectives. Executive SummaryThe D4.2 report presents the ex-post evaluation of business models and soil management practices that aim to improve soil health in Swiss agriculture, as part of Work Package 4, Task 2 of the InBestSoil project and in relation to the second Living Lab of the project. The analysis draws on an extensive national survey of arable farms and detailed empirical estimation of production functions. The Swiss case is positioned within the broader soil-health-based sustainable business model framework developed in Deliverable 4.1. The findings of this ex-post evaluation can, in particular, be interpreted through Archetype 6: Facilitate Sustainability Transition. It operationalises the archetype and sheds light on the behavioural aspects of business model adoption and resulting impacts.The report is relevant for policymakers at the national and EU level designing agri-environmental schemes, land-use planners and environmental managers concerned with soil conservation, farmer organisations and advisory services seeking evidence on soil practices, and researchers in agricultural economics and sustainability science. A nationwide survey in 2023/24 collected 2,728 farm responses, capturing structural, behavioural, and attitudinal factors influencing soil management. A new Arable Soil Management Index, based on the universal soil loss equation, quantified soil-friendly practices. This index was used in a stochastic frontier analysis of wheat production, corrected for self-selection bias, to estimate impacts on yields, efficiency, and input use. The analysis leads to three key messages: (1) a trade-off between productivity and soil health exists in that Intensive management improves short-term yields and efficiency but degrades soils; (2) a market failure prevails, as farmers prioritise private returns, leaving public benefits like carbon storage and biodiversity undervalued; (3) the role of experience and scale matter, since more experienced managers and larger farms are more efficient, showing the importance of skills and scale for sustainable adoption. The deliverable results demonstrate the value of combining behavioural surveys with econometric modelling to capture farm decision-making. For practice, the project’s benchmarking app allows farmers to compare their soil practices with peers and supports advisory services in promoting gradual adoption of sustainable practices.The findings provide evidence for policy and advisory frameworks that support soil protection, reinforcing InBestSoil’s goal of embedding soil health in business and governance. Policies must address the market failure by creating incentives that reward long-term soil health, such as payments for ecosystem services and performance-based schemes. Findings are directly relevant to Mission Soil objectives on reducing degradation, increasing soil organic matter, and enhancing monitoring. This deliverable confirms that soil-friendly practices are essential for reconciling farm productivity with long-term sustainability. It is structured as follows: Chapter 1: Background introduces the survey methodology and contextualises it within the broader Swiss agricultural sector. The country-wide online survey, conducted in winter 2023/24, targeted over 15,000 eligible arable farms and yielded 2,728 complete responses—a robust sample representing the diversity of Swiss arable farming. The chapter outlines Switzerland’s agricultural structure, its distinct policy and payment schemes that support soil health, and the distinction between public and private initiatives. The survey was designed to capture not only practice adoption but also behavioural, structural, and attitudinal factors influencing farmers' decisions. It also covers the input and output parameters for the most important arable crop, which is winter wheat. Chapter 2: The impact analysis is based on a detailed conceptual and empirical framework used to assess how soil health practices influence farm productivity and efficiency, particularly in milling wheat production Recognising that farmers often adopt bundles of practices rather than isolated measures, this chapter introduces a novel Arable Soil Management Index based on the universal soil loss equation (C-factor). This index then enters the estimation of a production function. A stochastic frontier analysis (SFA), corrected for endogeneity, quantifies the impact of varied soil management strategies on output and input use. The analysis finds that, when taking into account endogeneity, a greater intensity of soil management leads to higher productivity and greater input efficiency, whilst such intense management is negative for soil health. Chapter 3: The project’s dissemination activities are described to understand the outreach and engagement efforts. A key outcome was the development of a digital benchmarking app, which allowed participating farmers to compare their soil management practices with peers and access tailored recommendations. This tool was positively received and presented to Swiss federal agricultural authorities. Additional dissemination included presentations at policy forums, academic conferences, and a forthcoming publication. Overall, deliverable 4.2 offers a comprehensive dataset and analytical approach to evaluate the real-world impact of soil health practices in arable farming. It contributes valuable evidence for designing more effective and targeted incentives to promote sustainable land management, while also highlighting the complex interplay between policy, behaviour, and agronomic outcomes in Swiss agriculture, with wider relevance to soil health promotion across arable farms in Central Europe.