If the price is right: farmer attitudes to producing environmental services

Abstract

Market-based instruments are increasingly seen as an option for policy-makers to achieve the environmental and economic outcomes that society demands. The attitudes of farmers towards the concept of producing environmental services on farms and what they would need to be paid for such services were explored in a study of 45 farmers in the Walgett Shire of north-west NSW. To contractually manage and maintain parcels of their land for conservation inperpetuity, participants reported that they would need to be paid $25/ha for 'basic' grazing country, $53/ha for country considered to be 'special' grazing country (e.g. riparian zone, unique topography, wildlife corridors), and $206/ha for cropping country. While farmers were receptive to the concept of becoming involved in payments for the production of environmental services, factors such as age, land value, concerns about the environment, the role of government, and the binding nature of in-perpetuity contractual arrangements, affected their willingness to participate.