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Testing the Empirical Relationship between Best Management Practice Adoption and Farm Profitability

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  • Luc Valentin
  • Daniel J. Bernardo
  • Terry L. Kastens
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    Abstract

    Several “best management practices” (BMPs) aimed at reducing movement of nutrients, pesticides, and sediment into surface water resources have been developed and promoted by Extension and other agencies over the past several years. This study utilizes actual farm-level economic and BMP adoption data to rigorously analyze the relationship between BMP use and farm profitability. Results indicate that adoption of nutrient BMPs has a significant positive effect on net farm income (NFI) for wheat and corn, while herbicide BMP adoption, particularly use of BMPs related to the application of atrazine on corn, has a small (but statistically significant) negative impact on income. Adoption of soil conservation BMPs is not shown to have a statistically significant impact on farm income. Copyright 2004, Oxford University Press.

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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

    Volume (Year): 26 (2004)
    Issue (Month): 4 ()
    Pages: 489-504

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    Handle: RePEc:oup:revage:v:26:y:2004:i:4:p:489-504

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    Cited by:
    1. Franco, Juan Agustin & Calatrava-Requena, Javier, 2008. "Adoption and diffusion of no tillage practices in Southern Spain olive groves," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44014, European Association of Agricultural Economists.
    2. Jolejole, Christina B. & Swinton, Scott M. & Lupi, Frank, 2009. "Incentives to Supply Enhanced Ecosystem Services from Cropland," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49356, Agricultural and Applied Economics Association.
    3. Tipparat Pongthanapanich & Eva Roth, 2006. "Toward Environmental Responsibility of Thai Shrimp Farming through a Voluntary Management Scheme," Working Papers 70/2006, University of Southern Denmark, Department of Environmental and Business Economics.
    4. Peter C. Boxall & Orsolya Perger & Marian Weber, 2013. "Reverse Auctions for Agri-Environmental Improvements: Bid-Selection Rules and Pricing for Beneficial Management Practice Adoption," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 23-36, August.

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