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Will Farmers Trade Profits for Stewardship? Heterogeneous Motivations for Farm Practice Selection

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Author Info
Hayley H. Chouinard
Tobias Paterson
Philip R. Wandschneider
Adrienne M. Ohler
Abstract

We investigate the trade-off agricultural producers face between profits and stewardly activities when selecting farm practices. Instead of the profit-maximization framework, we model producer behavior in an expanded utility framework, built on production technology, and including two utility components: self and social interests. The framework introduces inherent heterogeneity and social/environmental motivations into farmer behavior. Based on this model, we hypothesize that there are farmers that are willing to forego some profit to engage in stewardly farm practices. With an empirical study, we provide evidence that some farmers are willing to make this sacrifice. Results are consistent with the multi-utility hypothesis.

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File URL: http://le.uwpress.org/cgi/reprint/84/1/66
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 84 (2008)
Issue (Month): 1 ()
Pages: 66-82
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Handle: RePEc:uwp:landec:v:84:y:2008:i:1:p:66-82

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Find related papers by JEL classification:
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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  1. Gauntlett, William, 2009. "The Costs and Benefits of Effluent Management Compliance in the Waikato Region of New Zealand," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48032, Australian Agricultural and Resource Economics Society. [Downloadable!]
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This page was last updated on 2009-12-19.

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