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Simulation of a Group Incentive Program for Farmer Adoption of Best Management Practices

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  • Ipe, Viju C.
  • DeVuyst, Eric A.
  • Braden, John B.
  • White, David C.

Abstract

A group incentive program to encourage farmer adoption of best management practices is simulated for a typical watershed in central Illinois. The incentive payments, program costs and environmental impacts of the program are simulated. The results show that the best management practices may not actually reduce farm profits but may increase farm profits and reduce environmental pollution. The sponsor in most cases may not have to pay anything under the incentive contract. This may bring about a win-win situation for the sponsor, the farmer participating in the program, and society as a whole. The program could be implemented as an educational effort to demonstrate the benefits of sound management practices.

Suggested Citation

  • Ipe, Viju C. & DeVuyst, Eric A. & Braden, John B. & White, David C., 2001. "Simulation of a Group Incentive Program for Farmer Adoption of Best Management Practices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 139-150, October.
    • Handle: RePEc:cup:agrerw:v:30:y:2001:i:02:p:139-150_00
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    References listed on IDEAS

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    1. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
    2. DeVuyst, Eric A. & Ipe, Viju C., 1999. "A Group Incentive Contract To Promote Adoption Of Best Management Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-16, December.
    3. Randhir, Timothy O. & Lee, John G., 1997. "Economic and Water Quality Impacts of Reducing Nitrogen and Pesticide Use in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(1), pages 39-51, April.
    4. Randhir, Timothy O. & Lee, John G., 1997. "Economic And Water Quality Impacts Of Reducing Nitrogen And Pesticide Use In Agriculture," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-13, April.
    5. Satya Yadav & Willis Peterson & K. Easter, 1997. "Do farmers overuse nitrogen fertilizer to the detriment of the environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 323-340, April.
    6. Baquet, Alan E. & Skees, Jerry R., 1994. "Group Risk Plan Insurance: An Alternative Management Tool for Farmers," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 9(1), pages 1-4.
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    Cited by:

    1. Philippe Bontems & Gilles Rotillon & Nadine Turpin, 2004. "Improvement of water quality as a joint production of milk when dairy farms are heterogeneous [Incitation à la production jointe d'eau de qualité et de lait lorsque les exploitations laitières sont," Post-Print hal-01606126, HAL.
    2. Nyaupane, Narayan P. & Gillespie, Jeffrey M., 2009. "The Influences Of Land Tenancy And Rotation Selection On Crawfish Farmers’ Adoption Of Best Management Practices," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46174, Southern Agricultural Economics Association.
    3. Paudel, Krishna P. & Gauthier, Wayne M. & Westra, John V. & Hall, Larry M., 2008. "Factors Influencing and Steps Leading to the Adoption of Best Management Practices by Louisiana Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-20, April.
    4. Traxler, Emilia & Li, Tongzhe, 2020. "Agricultural Best Management Practices, A summary of adoption behaviour," Working Papers 305271, University of Guelph, Institute for the Advanced Study of Food and Agricultural Policy.
    5. Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 2002. "Factors Influencing The Implementation Of Best Management Practices In The Dairy Industry," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35241, Southern Agricultural Economics Association.

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