Role of information in the adoption of best management practices for water quality improvement
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This study investigates the role of information in influencing the adoption of improved farm management
practices. A lack of producer information regarding both the profitability and the environmental benefits of adopting
improved practices may be a reason why widespread adoption of these practices has not occurred. Compared to
direct regulation or financial incentives, raising producer information levels may be a more cost-effective method of
increasing adoption. The United States Department of Agriculture has recently established and begun implementing
a program based on this idea. To test the validity of the program, a two-stage adoption model is specified and
estimated using data from a survey of producers in the program area. The results indicate that producer perceptions
play an important role in the decision to adopt. Changing these perceptions by means of an educational program
may be a reasonable alternative to financial incentives in encouraging BMP adoption.