PR - Watershed Evaluation Of Beneficial Management Practices: On Farm Costs And Benefits
The objective of this study is to evaluate on-farm costs and benefits of adopting Beneficial Management Practices (BMPs) to improve water quality. BMPs tested include permanent cover, buffer strips, off-stream watering and fencing riparian areas. Farms in Lower Little Bow River watershed are very large and with relatively little debt. A stochastic and dynamic farm-level simulation model is developed to assess net farm benefits.
Model results indicate that implementation of these BMPs significantly reduces farm cash flow. Depending on desired level of riparian protection, increasing calf productivity and/or improving pasture utilization might in theory off-set off-stream watering costs. Fencing cost is prohibitive. Given vagaries of the cattle business, uncertainty about international border closures, high cost of fencing and no clear on-farm benefits to adoption, financial incentives may be required for voluntary implementation.
Keywords: Riparian, BMPs, Cost, Gross Margin or Cash flow, Adoption