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A GROUP INCENTIVE CONTRACT TO PROMOTE ADOPTION OF BEST MANAGEMENT PRACTICES AgEcon
DeVuyst, Eric A.; Ipe, Viju C..
The control of agricultural nonpoint source pollution is emerging as a priority of state and national pollution control programs. Best management practices (BMPs) are often proposed as a method of control. Many BMPs are perceived by farmers as having economic disadvantages when compared to conventional management systems. In the absence of tougher environmental restrictions on farmer behavior and complete observability of individual farmer actions, it may be necessary to provide economic incentives to encourage farmer adoption of BMPs within environmentally sensitive watersheds. This study investigates the use of a group incentive contract to encourage adoption of BMPs. The idea behind the group incentive contract is to compensate farmers for actual...
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 1999 URL: http://purl.umn.edu/30803
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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 AgEcon
Ipe, Viju C.; DeVuyst, Eric A..
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...
Tipo: Conference Paper or Presentation Palavras-chave: Group incentive; Adoption; Best management practices; Environmental Economics and Policy; Farm Management.
Ano: 1999 URL: http://purl.umn.edu/21704
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SIMULATION OF A GROUP INCENTIVE PROGRAM FOR FARMER ADOPTION OF BEST MANAGEMENT PRACTICES AgEcon
Ipe, Viju C.; DeVuyst, Eric A.; Braden, John B.; White, David C..
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.
Tipo: Journal Article Palavras-chave: Agribusiness.
Ano: 2001 URL: http://purl.umn.edu/31433
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