Economic Targeting of Agricultural Beneficial Management Practices to Address Phosphorus Runoff in Manitoba

The mechanisms used to deliver agricultural beneficial management practices (BMPs) can influence the performance of these policies. Research has suggested that agri-environmental instruments targeted based on specific economic or environmental characteristics can improve policy performance. Using a case study approach, we evaluate the relative performance of different mechanisms to target subsidized water retention pond BMPs to reduce phosphorus (P) runoff in an agriculture dominated subwatershed within the Lake Winnipeg watershed in southern Manitoba. The water retention pond BMPs were targeted based on estimated establishment costs (cost targeting), total phosphorus removal from surface water (benefit targeting), and pond-specific benefit-cost ratios. The targeting was simulated using predictions of retention pond-specific P removal from an adapted hydrology model and site-specific pond construction and land opportunity costs assembled in a geographic information system database. Targeting of water retention pond BMPs has an impact on the cost effectiveness of the policy delivery with benefit-cost targeting being the most cost-effective approach. Water retention ponds providing higher P removal at lower cost were smaller in size and on land previously used for the production of lower value crops.