The widespread implementation of innovative grazing systems will be successful if farmers see the benefits and consumers appreciate the products produced in this way. Therefore, the GreenGrass market work package is carrying out a comprehensive cost calculation for the introduction of innovative grazing systems in order to reduce the risk for farmers (Business Administration – University of Hohenheim). At the same time, GreenGrass strives to build consumer acceptance and a special appreciation for the novel pasture production systems. In order to gain consumer confidence, a dialogue is initiated from the outset in which concerns are recorded and addressed. On the other hand, the advantages of the system for preserving biodiversity and more animal-friendly animal husbandry must be communicated in a comprehensible manner and demonstrated in the living labs (consumer acceptance and marketing – University of Kassel). Farmers are typically compensated for providing public goods such as the preservation of biodiversity through payments under agri-environmental measures (AEM). GreenGrass is developing effective, cost-efficient and transparent payment systems for ecologically valuable production systems using animal management technology (premium systems for public goods – BTU Cottbus).

Business management: Cost-benefit analyses are carried out at farm level to estimate the economic benefits of innovative pasture production systems. The aim here is also to identify and reduce business management barriers to the introduction and implementation of innovative pasture systems. The cost-benefit analyses reveal the cost drivers involved in the internal value creation process. To this end, the cost drivers for the factors of land, labour and capital (including the smart farming technologies used, such as drones and virtual fencing collars) and the associated services are identified. The cost and performance calculation thus provides a cost calculation for the introduction of the new grazing systems. For model farms that manage grassland, produce silage and hay, and engage in pasture farming, the changes in working time capacities and peak workloads resulting from the introduction of new technologies are mapped, as are the changes in requirements for farm structures and operations. This cost calculation forms the basis for unit cost calculations for all products produced by the new grazing system (milk, meat and ecosystem services). It also provides the framework for comparing consumer willingness to pay and for designing agri-environmental measures.

Consumer acceptance and marketing of products: In addition to payments for agri-environmental measures, good marketing opportunities can provide an additional incentive for farmers to implement the new husbandry systems. Successful marketing requires consumers to have a particular appreciation for the products produced in this system. Building such appreciation requires open and trusting communication. The wishes and concerns of consumers must be addressed. In this way, strategies can be developed that communicate the special product characteristics and the advantages of the system for the preservation of biodiversity and animal welfare in a way that is understandable and comprehensible to consumers. To this end, a labelling system for products from the innovative pasture production system is being developed and tested. The effect of the communication materials developed on consumers' willingness to pay for dairy products and beef from this special system will then be determined. The willingness to pay is in turn incorporated into the performance calculations for the farmers' cost calculations.

Premium systems for public goods (agri-environmental measures): Effective, cost-efficient and transparent payment systems are being developed for innovative grazing systems that, thanks to their production methods, also provide ecologically valuable goods (e.g. preservation of biodiversity). Effective means that the ecological goals are actually achieved through agri-environmental measures (AEM). Cost-efficient means that the payment systems are designed in such a way that the ecological benefits are maximised for the given government budget. The integration of remote sensing and software-based information systems allows new types of AEM to be developed for this purpose. For example, a framework agreement could be concluded with the farmer which, depending on the actual natural condition of his agricultural land, offers various measures to increase its ecological value and agrees on specific ecological targets. The natural condition of the land is then recorded and checked using remote sensing. New premium systems that take into account these digitally recorded natural conditions and the innovative grazing systems and measures implemented by the farmer must be developed for this purpose. The potential ecological impacts of the innovative grazing systems, their costs on different areas, and payments from new premium systems are then mapped in simulations by the SMI (see Information) and prepared for the various user groups.