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A Group Incentive Program For Farmer Adoption Of Best Management Practices: An Application To The Nitrate Pollution Problem In Central Illinois

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Author Info

  • Ipe, Viju C.
  • DeVuyst, Eric A.

Abstract

The paper demonstrates a group incentive program to encourage farmer adoption of best management practices. It is demonstrated that the best management practices may not actually reduce farm profits but may increase farm profits and reduce environmental pollution. This may bring about a win-win situation for sponsor, the farmer participating in the program, and the society as a whole. The results show that the farmers subjective beliefs about response of corn yields and profits to nitrogen application differ from the simulated responses which in turn results in the willingness-to-Accept for adoption best management practices significantly higher than the expected program payments. The program could be implemented as an educational effort to demonstrate the benefits of sound management practices for larger adoption in the long run.

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File URL: http://purl.umn.edu/21704
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21704.

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Date of creation: 1999
Date of revision:
Handle: RePEc:ags:aaea99:21704

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Related research

Keywords: group incentive; adoption; best management practices; Environmental Economics and Policy; Farm Management;

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  1. 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), April.
  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(02), December.
  3. Cooper, Joseph C. & Keim, Russ, 1996. "Incentive payments to encourage farmer adoption of water quality protection practices," MPRA Paper 24779, University Library of Munich, Germany.
  4. Baquet, Alan E. & Skees, Jerry R., 1994. "Group Risk Plan Insurance: An Alternative Management Tool for Farmers," Choices, Agricultural and Applied Economics Association, vol. 9(1).
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