SIMULATION OF A GROUP INCENTIVE PROGRAM FOR FARMER ADOPTION OF BEST MANAGEMENT PRACTICES

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.


Subject(s):
Issue Date:
2001-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31433
Published in:
Agricultural and Resource Economics Review, Volume 30, Number 2
Page range:
139-150
Total Pages:
12




 Record created 2017-04-01, last modified 2017-04-04

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