The economics of agricultural Best Management Practices in the Lower Little Bow Watershed.

摘要

In this research project, an economic cost/benefit analysis was performed for implementation of Best Management Practices (BMPs) by a large mixed farm in southern Alberta. The study was undertaken in order to better understand the private benefits and/or costs to a producer who introduces riparian habitat and water preservation and conservation practices onto their operation. The study was performed by modelling a farm representative of a large mixed crop and livestock operation in the Lower Little Bow Watershed in southern Alberta. The site was well suited for agricultural BMP analysis because of the wide range and intensities of agricultural activities associated with the operation.;The data collected was used in a Monte Carlo simulation analysis. For a base scenario and a set of BMP implementation scenarios, Net Present Values were calculated over a twenty year period. The overriding conclusion in this study is that best management practice implementation for riparian and water protection is costly to producers. Thus, producers may need to be provided with economic incentives in order to implement best management practices. The results of the study may be used as approximations of the size of incentive payments that may encourage producers to implement BMPs.