This study investigates reasons for adoption of best management practices (BMP), crawfish farmers' participation in the Environmental Quality Incentives Program (EQIP), and economic impacts of BMP adoption using data from a 2008 survey of crawfish producers. Most-cited reasons for BMP adoption are farmers' perceptions of increases in profit and long-run productivity. Land tenancy, education, double-cropping or crop rotation, and proximity to a stream influence EQIP participation. Perceptions of economic profits depend on the practices used. Participation in EQIP negatively impacts farmers' perceptions of profitability from adopting BMPs. The results underscore the importance of economic incentives in promoting BMP adoption.

When evaluating the economic efficiency of policies to reduce nonpoint source pollution, administrative or transaction costs are usually not taken into account. While the importance of transaction costs has been recognized in the theoretical literature, the fact that they are not incorporated in empirical analyses means that, in effect, these costs are given a zero value. This issue is examined quantitatively using data collected by the National Resource Conservation Service (NRCS). Transaction costs are found to be a significant portion (38 percent) of overall conservation costs. This provides strong support for including these costs in economic evaluations of alternative policy instruments.

The 1996 farm bill challenges agricultural producers to pursue conservation objectives while allowing flexibility and reducing subsidies. The nature of this challenge for semi-arid rainfed, wind-erosion-prone agriculture is explored via a behavioral model. Simulations of farm-firm decision making under scenarios in the southern Texas High Plains are evaluated. Results indicate that the removal of subsidies, while lowering farm incomes, does not, under most assumptions, alter cropping system choice. Alternatively, under a variety of assumptions, the imposition of an erosion tax shuts down cropping.