Abstract
Environmental degradation threatens the long term resiliency of the US food and farming system. While USDA has provided conservation incentives for the adoption of best management practices (BMPs), only a small percentage of farms have participated in such conservation programs. This study uses conjoint analysis to examine Vermont farmers’ underlying preferences and willingness-to-accept (WTA) incentives for three common BMPs. Based on the results of this survey, we hypothesize that federal cost share programs’ payments are below preferred incentive levels and that less familiar and more complex BMPs require a higher payment. Our implications focus on strategies to test these hypotheses and align incentive payments and other non-monetary options to increase BMP adoption.
Highlights
The environmental degradation and negative externalities imposed on society by US agricultural production systems have been steadily increasing since the end of World War II [1]
The USDA and other agricultural technical service providers have emphasized the need for farmers to adopt best management practices (BMPs) to address environmental health concerns, ensure the long-term sustainability of their operations, and to use as an adaptation strategy for coping with climate change [3]
Our results suggest that farmers are more willing to adopt BMPs that are more familiar, simpler, and are integrated more in to existing management practices but that higher monetary incentives can in part overcome farmer reluctance
Summary
The environmental degradation and negative externalities imposed on society by US agricultural production systems have been steadily increasing since the end of World War II [1]. The USDA and other agricultural technical service providers have emphasized the need for farmers to adopt best management practices (BMPs) to address environmental health concerns, ensure the long-term sustainability of their operations, and to use as an adaptation strategy for coping with climate change [3]. In 2012, only 2.2% of agricultural acreage in the United States had an active or completed contract through the Environmental Quality Incentives Program (EQIP) [5,6] This raises many questions, including whether the incentive levels offered by this federal programs match farmers’ financial requirements to implement BMPs. This study uses conjoint analysis to determine Vermont farmers’ underlying preferences and willingness-to-accept (WTA) incentive levels for three common BMPs. The results complement a parallel study in which BMP implementation costs were directly measured on farms [7]. Results highlight regional farmer decision-making and preferences for conservation practices while further informing the design of voluntary conservation programs that assist farmers in improving the health of their land and the resiliency of their operations [8,9,10]
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