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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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  • 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.

Suggested Citation

  • Ipe, Viju C. & DeVuyst, Eric A., 1999. "A Group Incentive Program For Farmer Adoption Of Best Management Practices: An Application To The Nitrate Pollution Problem In Central Illinois," 1999 Annual meeting, August 8-11, Nashville, TN 21704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21704
    DOI: 10.22004/ag.econ.21704
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    References listed on IDEAS

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    1. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
    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(2), pages 1-16, December.
    3. 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, Cambridge University Press, vol. 26(1), pages 39-51, April.
    4. 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), pages 1-13, April.
    5. DeVuyst, Eric A. & Ipe, Viju & Hornbaker, Robert H., 1996. "Insuring Farm Revenue and Profit as an Incentive for Adoption of Best Management Practices," 1996 Annual Meeting, July 28-31, San Antonio, Texas 271475, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Baquet, Alan E. & Skees, Jerry R., 1994. "Group Risk Plan Insurance: An Alternative Management Tool for Farmers," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 9(1), pages 1-4.
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    Cited by:

    1. Obubuafo, Joyce & Gillespie, Jeffrey M. & Paudel, Krishna P. & Kim, Seon-Ae, 2006. "Knowledge, Application and Adoption of Best Management Practices by Cattle Farmers under the Environmental Quality Incentives Program - A Sequential Analysis," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35307, Southern Agricultural Economics Association.

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