An economic assessment of the distribution of benefits arising from adoption of conservation tillage practices in crop production in southwestern Ontario

Abstract

The purpose of this study is to compare the on-farm and off-farm costs of soil erosion and assess the distribution of benefits arising from adoption of conservation tillage practices in selected watersheds in southwestern Ontario. The three watersheds studied are the Big Creek watershed in Essex County, the Newbiggen Creek watershed in Middlesex County, and the Stratford/Avon watershed in Perth County. The conventional tillage practice in all three watersheds is fall moldboard ploughing. Simulation models are used to estimate changes in gross erosion, sediment delivery to streams, and farm net returns that accompany adoption of conservation tillage systems. A budgeting approach is used to estimate the off-farm costs of sedimentation from cropland and the off-farm benefits of adoption conservation tillage practices. These benefits range from $9.93 to $71.70 per hectare and outweigh the on-farm cost of adoption in most cases. In the past, the principal rationale for soil conservation policy in Ontario has been to preserve soil productivity. Recent emphasis on both soil and water quality with respect to soil erosion indicates that policy makers have begun to realize the magnitude of the off-farm impacts. The results of this study imply that this shift in emphasis should continue.