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Narayan P. Nyaupane and Jeffrey M. Gillespie Agricultural Economics and Agribusiness

Crawfish Farmer Adoption of Best Management Practices and Participation in the Environmental Quality Incentives Program. Narayan P. Nyaupane and Jeffrey M. Gillespie Agricultural Economics and Agribusiness Louisiana State University Agricultural Center

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Narayan P. Nyaupane and Jeffrey M. Gillespie Agricultural Economics and Agribusiness

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  1. Crawfish Farmer Adoption of Best Management Practices and Participation in the Environmental Quality Incentives Program Narayan P. Nyaupane and Jeffrey M. Gillespie Agricultural Economics and Agribusiness Louisiana State University Agricultural Center CNREP Conference, May 28, 2010, New Orleans, LA

  2. Background • The U.S. crawfish industry is concentrated in Louisiana. • Waste water is an environmental concern. • Best Management Practices (BMPs) are helpful for minimizing non-point source pollution. • BMP adoption is encouraged, but voluntary. • Adoption rates and reasons for BMP adoption in the crawfish industry are unknown.

  3. Background • Government conservation initiatives for agricultural land. • Farm Bills since 1985. • Since the 1996 Farm Bill, the Environmental Quality Incentives Program (EQIP) has worked with other federal programs. • Payment of subsidies in the form of cost shares. • Economics related to BMP adoption. • Some BMPs are expected to be economically profitable.

  4. Objectives • Determine: • Factors affecting crawfish farmer BMP adoption. • Reasons for BMP adoption. • Factors affecting farmer participation in the EQIP. • Economic impacts of BMP adoption.

  5. Data and Methods • 2008 mail survey to 770 Louisiana crawfish producers. • Dillman’s total design method used. • 4 contacts. • Personally addressed and signed letters. • Announcements at annual Louisiana Farm Bureau meetings and in the LSU AgCenter crawfish newsletter. • 15% adjusted response rate. • Count data analysis (negative binomial), probit, and ordered probit analyses conducted.

  6. Count Data Analysis of Factors Affecting Adoption of 18 BMPs (Negative Binomial Model)

  7. Reasons for Adopting 18 BMPs

  8. EQIP Participation by BMP

  9. Factors Affecting EQIP Participation - Probit

  10. Economic Impacts from BMP Adoption (Ordered ProbitRuns) Considering the combination of BMPs adopted, how has this combination impacted your farm profit? (4 categories)

  11. Summary and Conclusions • Farm size, double-cropping, and farmer age were positively associated with BMP adoption while percentage of farm income from crawfish was negatively associated. • As with other agricultural industries, crawfish farmers find some BMPs more useful than others. The two major reasons for BMP adoption were producer perception of “increase in profit”, and expected increase in “long-run productivity”. • Most of the producers receiving EQIP cost-shares received them for irrigation land leveling, grade stabilization structure, irrigation water management, and irrigation water conveyance via pipelines.

  12. Summary and Conclusions • More educated farmers with double cropping or rotation systems of crawfish production were greater participants in the EQIP while those in the cash lease system were less likely to be EQIP participants. • Adoption of conservation cover, an irrigation system with tailwater recovery, and a pumping plant were perceived by farmers to have increased their crawfish profit. • Results provide insights for designing educational programs to encourage BMP adoption, as well as to inform farmers about the EQIP.

  13. THANK YOU

  14. Reasons for adopting BMP(% of adopters)

  15. Reasons for adopting BMP(% of adopters)

  16. Independent Variables, Summary

  17. Economic impacts from BMP adoption (Ordered-probit runs)

  18. Economic impacts from BMP adoption (Ordered-probit runs)

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