The 2008 Joint Meeting of the Society for Range Management and the America Forage and Grassland Council.

Tuesday, January 29, 2008 - 9:20 AM

A Field Experiment Comparing Mechanisms for the Provision of Nesting Bird Habitat on Active Farm Hayfields

Christopher M. Anderson, Stephen K. Swallow, and Emi Uchida. Environmental & Natural Resource Economics, University of Rhode Island, 205 Kingston Coastal Institute, One Greenhouse Road, Kingston, RI 02881

Active farm fields provide open space amenities, such as habitat for wildlife and pastoral views, groundwater recharge and absence of congestion externalities for local residents. However, farmers do not receive revenue from these amenities, and thus do not take the value provided into account when determining farming practices. We are attempting to establish a brokered private market between residents and farmers for these amenities, so that farmers may integrate this value into their management plans and residents can continue to enjoy the amenities provided by desirable farm practices. We contracted with farmers in Jamestown, Rhode Island to delay hay mowing until after the primary nesting season for Bobolinks, a charismatic species indicating the health of grassland habitat, if money to cover the costs of the contract can be raised from surrounding residents. Bobolink habitat represents a new product farmers can sell by growing hay, making hay more profitable and providing public good amenities. Following an intensive community-wide marketing campaign, all town residents received solicitations to participate in one of our farm-wildlife contracts by making an offer of payment toward its provision. Residents' payment requests were through one of three randomly-assigned mechanisms: a traditional provision-point mechanism with a money-back guarantee and a proportional rebate, the incentive compatible Groves-Clarke pivotal mechanism, or a multi-buyer uniform price procurement auction that assures all buyers pay the same price. The presentation will report the results of the market and compare the values revealed and funds raised using the three mechanisms.