Impact of policies to reduce emissions from new cultivation of peat soils

The analysis provides answers to two questions:

• What is the probable food production on the area to be banned from new cultivation?
• What are the probable private economic costs for farms affected by the ban of cultivating peat soils?

The method is to calculate average food production per day and municipality and multiply this by the area banned from cultivation. Thus, variation between municipalities will be captured. In addition, possible food production is calculated under different assumptions about which plants can be grown on the area that is banned. The answer to this question will give an indication of the importance of this area in terms of degree of self-sufficiency and long-term preparedness (i.e., maintaining productive area for Norwegian food production). In order to calculate the economic costs for farms affected by the ban, it is necessary to make further assumptions, first and foremost what plans the farm has for future operations, alternatives for new cultivation, and distance from the operating center to the land. A calculation will be set up for milk production that calculates the economic costs of a new cultivation ban depending on the current size (number of cows and roughage area), current capital costs, any investment plans (number of cows and roughage area), new cultivation costs and alternatives without new cultivation (e.g., purchase of roughage or rent of land).