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Farmers as Producers of Clean Water: Getting Incentive Payments Right and Encouraging Farmer Participation

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  • Collins, Alan R.
  • Maille, Peter
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    Abstract

    This research involved a field experiment using watershed payments as an incentive for farmers to address agricultural non-point pollution (ANP). Objectives were to: (1) describe how payments were estimated for a field experiment; (2) explain why a team approach is needed for ANP; (3) discuss the essential elements used for recruitment of farmers into a field experiment setting; and (4) address whether or not farmers were motivated to participate and pursue ANP abatement. One year into the experiment, the results are encouraging. About one-half of farmers who attended meetings are participating. They own or operate approximately 41% of the agricultural land in the watershed. Farmer actions to date have included determining an allocation formula for the payment, requesting watershed wide sampling, and cost sharing of ANP abatement.

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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6342.

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    Date of creation: 2008
    Date of revision:
    Handle: RePEc:ags:aaea08:6342

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    Related research

    Keywords: field experiment; team approach; agricultural non-point pollution; performance-based incentives; Environmental Economics and Policy; Resource /Energy Economics and Policy;

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    1. Spraggon, John, 2002. "Exogenous targeting instruments as a solution to group moral hazards," Journal of Public Economics, Elsevier, vol. 84(3), pages 427-456, June.
    2. Millock Katrin & Salanié François, 2005. "Nonpoint Source Pollution When Polluters Might Cooperate," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-27, July.
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    4. James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
    5. Hanna L. Breetz & Karen Fisher-Vanden & Hannah Jacobs & Claire Schary, 2005. "Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading," Land Economics, University of Wisconsin Press, vol. 81(2).
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    7. Richard Horan & James Shortle & David Abler, 2002. "Ambient Taxes Under m-Dimensional Choice Sets, Heterogeneous Expectations, and Risk-Aversion," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(2), pages 189-202, February.
    8. Smith, Rodney B.W. & Tomasi, Theodore D., 1995. "Transaction Costs And Agricultural Nonpoint-Source Water Pollution Control Policies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(02), December.
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    11. Feather, Peter M. & Amacher, Gregory S., 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, Blackwell, vol. 11(2-3), pages 159-170, December.
    12. Gregory L. Poe & William D. Schulze & Kathleen Segerson & Jordan F. Suter & Christian A. Vossler, 2004. "Exploring the Performance of Ambient-Based Policy Instruments When Nonpoint Source Polluters Can Cooperate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1203-1210.
    13. Ribaudo, Marc & Horan, Richard D. & Smith, Mark E., 1999. "Economics of Water Quality Protection from Nonpoint Sources: Theory and Practice," Agricultural Economics Reports 33913, United States Department of Agriculture, Economic Research Service.
    14. Michael A. Taylor & Brent Sohngen & Alan Randall & Helen Pushkarskaya, 2004. "Group Contracts for Voluntary Nonpoint Source Pollution Reductions: Evidence from Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1196-1202.
    15. Christian A. Vossler & Gregory L. Poe & William D. Schulze & Kathleen Segerson, 2006. "Communication and Incentive Mechanisms Based on Group Performance: An Experimental Study of Nonpoint Pollution Control," Economic Inquiry, Western Economic Association International, vol. 44(4), pages 599-613, October.
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