Farmer Income Dependence and Ecosystem Services in European Permanent Grasslands

Permanent grasslands in Europe face degradation due to land use changes and economic pressures. This study analyzes farmer income dependence, policy impacts, and ecosystem service delivery across climatic and sociocultural regions. Using a systematic review of CAP-related studies (1962–2019) and FADN data from Czech Republic, Sweden, Spain, and UK, it finds that Basic Payments and Rural Development Funding remain critical but insufficient to prevent intensification or abandonment. CAP Cross Compliance and Greening show inconsistent protection, especially for environmentally sensitive PG. Agri-environment schemes support niche and organic markets. Land abandonment is prevalent in less favoured areas, where high costs and low profitability threaten biodiversity. Targeted, flexible policies—especially Payment by Results schemes—are needed to balance food production and ecosystem services. Diversified income from tourism and processing can enhance sustainability.