Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-14T22:34:58.147Z Has data issue: false hasContentIssue false
  • English
  • Français

Simulation of a Group Incentive Program for Farmer Adoption of Best Management Practices

Published online by Cambridge University Press:  15 September 2016

Viju C. Ipe ,
Eric A. DeVuyst ,
John B. Braden  and
David C. White
Viju C. Ipe
Affiliation:
Department of Agricultural Economics at North Dakota State University
Eric A. DeVuyst
Affiliation:
Department of Agricultural Economics at North Dakota State University
John B. Braden
Affiliation:
University of Illinois at Urbana-Champaign
David C. White
Affiliation:
Department of Agricultural and Consumer Economics at the University of Illinois at Urbana-Champaign
Get access

Abstract

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.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 30 , Issue 2 , October 2001 , pp. 139 - 150
Copyright
Copyright © 2001 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Banquet, A.E. and Skees, J. 1994. “Group Risk Plan Insurance: An Alternative Risk-Management Tool for Farmers.” Choices 25–28, first quarter.Google Scholar
Bullock, D.G. and Bullock, D.S. 1994. “Quadratic and Quadratic-plus-plateau Models for Predicting Optimal Nitrogen Rate for Corn: A Comparison.” Agronomy Journal 86: 191–195.CrossRefGoogle Scholar
Cooper, J.C. and Keim, R.W. 1996. “Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices.” American Journal of Agricultural Economics 78: 54–64.CrossRefGoogle Scholar
David, M.B., Kovacic, L.E., and Konya, K.D. 1994. “Nitrogen Dynamics of Agricultural Watershed in Central Illinois.” In Proceedings of Fourth Annual Conference of the Illinois Groundwater Consortium (March 23-24).Google Scholar
DeVuyst, E.A. and Ipe, C.V. 1999. “A Group Incentive Contract to Promote Farmer Adoption of Best Management Practices.” Journal of Agricultural and Resource Economics 24: 367–382.Google Scholar
Duttweiler, D.W. and Nicholson, H.P. 1983. Environmental Problems and Issues of Agricultural Nonpoint Source Pollution. In Agricultural Management and Water Quality, Schaller, F.W. and Bailey, G.W. (eds.), Ames, Iowa: Iowa State University Press, pp. 3–16.Google Scholar
Demisie, M. and Keefer, L. 1996. Watershed Monitoring and Land Use Evaluation for the Lake Decatur Watershed—Technical Report. Illinois State Water Survey Miscellaneous Publication 169.Google Scholar
Fleisher, B. 1990. Agricultural Risk Management. Lynne Rienner Publishers. Boulder, pp. 27–40.CrossRefGoogle Scholar
Ipe, C.V. 1998. A Group Incentive Program for Farmer Adoption of Best Management Practices. Ph.D. Thesis Submitted to the University of Illinois at Urbana-Champaign.Google Scholar
Randhir, T.O. and Lee, J.G. 1997. “Economic and Water Quality Impacts of Reducing Nitrogen and Pesticide Use in Agriculture.” Agricultural and Resources Economics Review 12: 39–51.CrossRefGoogle Scholar
Sriramaratnam, S. 1985. Texas Coastal Bend Grain Producers’ Fertilizer Decisions under Uncertainty. Ph.D. Dissertation, Texas A&M University, College Station. 1985.Google Scholar
United States Department of Agriculture. 1990. Agricultural Experiment Station. EPIC-Erosion Productivity Impact Calculator, Agricultural Technical Bulletin No. 1768 (September).Google Scholar
United States Department of Agriculture. 1995. Soil Conservation Water District, Champaign County. Unpublished survey of the Big Ditch watershed.Google Scholar
United States Department of Agriculture. 1999. Economic Research Service. Feed Situation and Outlook Yearbook (April).Google Scholar
United States Environmental Protection Agency, Office of Water. 1995. National Water Quality Inventory. Report to the Congress. Washington DC (April).Google Scholar
University of Illinois, Farm and Resource Management Laboratory (FaRMLab). Crop and Livestock Budgets, Examples for Illinois, 1995–1996. Department of Agricultural and Consumer Economics.Google Scholar
University of Illinois. Illinois Agronomy Handbook, 1997-1998. College of Agriculture, Cooperative Extension Service, 1301 West Gregory Drive, Urbana, IL 61801. Circular 1333.Google Scholar
White, D.C., DeVuyst, E.A., Shankar, B., and Braden, J.B. 1998. Watershed Modeling Using EPIC: A Procedure for Nitrogen Run-off Calibration. pERE Working Paper No. 10. Program in Environmental and Resource Economics, University of Illinois.Google Scholar
Yadav, S.N., Peterson, W., and Easter, W.K. 1997. “Do Farmers Overuse Nitrogen Fertilizer to the Detriment of the Environment?” Environmental and Resource Economics 9: 323–340.Google Scholar