DOI: 10.1002/jaa2.70056 ISSN: 2769-2485

Farmer participation in payment for ecosystem services programs: Evidence from eastern North Carolina

Matthew Mair, Gregory Howard

Abstract

We analyze farmer willingness to accept (WTA) voluntary Payment for Ecosystem Services contracts in North Carolina's Tar‐Pamlico watershed using a discrete choice experiment. Contract attributes include nitrogen application limits, cover crop requirements, funding source, and payment levels. Incorporating certainty recoding within a mixed logit framework, we find that program costs may be understated when ignoring respondent uncertainty, with average WTA shifting by more than $100 per acre. Cover crops may represent a lower‐cost nutrient reduction pathway than nitrogen application restrictions. We find no evidence that public versus private funding affects contract choice; our sample is underpowered for modest effects.

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