Farmers’ Preferences for Riparian Buffers

Abstract

Installation of riparian buffers on farmland is a high priority for agencies seeking to reduce agricultural nonpoint water pollution. While substantial subsidies are available through contracts, buffer adoption rates greatly lag implementation goals. We conduct a choice experiment of landowners in the Chesapeake Bay Watershed to examine preferences regarding contract requirements and simulate buffer supply curves under different requirements. We find that current contract designs hinder buffer adoption and that modifications could increase adoption substantially with minimal additional public expenditure. Our results also show that buffer supply is price-inelastic, further highlighting the potential gain from providing more flexible contract designs.