Cost–Benefit Analysis of Implementing Flower Strips and Hedgerows in Agricultural Landscapes: A Case Study of Conventional and Organic Apple Orchards in Eastern Germany

The simplification of agricultural landscapes has led to losses of biodiversity and the degradation of key ecosystem services, including pollination and natural pest control. Landscape features such as flower strips and hedgerows have been proposed to address these challenges, yet little research has addressed their economic viability. This study employs cost-benefit analysis over a 20-year period in apple orchards under conventional and organic integrated pest management systems in Eastern Germany as a case study to evaluate private and social benefits (including pollination, natural pest control, biodiversity conservation, carbon sequestration, and avoided human health costs) – and costs (for installation, management, and foregone agricultural land-use) of implementing flower strips and hedgerows. The results show that private net benefits for farmers are mostly negative, indicating limited incentives for adoption. In contrast, social net benefits are consistently positive in all scenarios. We conclude that mechanisms such as agri-environmental schemes and trustworthy labelling schemes are important to promote implementation thus bridging the gap between private and social interests.