Economic Analysis of Vegetative Buffer Zone Beneficial Management Practices (BMPs) for a Mixed Farm Operation in the Lower Little Bow Watershed

Jun Yang, Steve Koeckhoven, Scott R. Jeffrey and Jim Unterschultz

No 129427, Staff Paper Series from University of Alberta, Department of Resource Economics and Environmental Sociology

Abstract: Vegetative buffers, if established around riparian areas, represent a type of beneficial management practice (BMP) that provide ecological goods and services in the form of improved water quality, improved wildlife/waterfowl habitat, etc. Establishing these buffers result in reduced area for agricultural production, with corresponding opportunity costs. This study builds on previous work from AAFC's Watershed Evaluation of Beneficial Management Practices (WEBs) project, to examine the direct farm-level economics of vegetative buffers for a representative mixed farm operation in the Lower Little Bow watershed. Simulation results suggest that the opportunity cost associated with vegetative buffers varies with buffer width, but can be as great as $600 per acre converted. The cost per acre varies inversely with the width of the buffer.

Keywords: Farm Management; Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 24
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ualbsp:129427

DOI: 10.22004/ag.econ.129427

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