ABSTRACT: A soil conservation economics model (SOILEC) was used to calculate long-run erosion and financial impacts of alternative conservation management systems on 27 Illinois soils. By subtracting annual net income of the best system for achieving the soil loss tolerance (T-value) from the annual net income of the income-maximizing system, an estimate was obtained of the subsidy or payment required to induce a farmer to achieve T-value. Sensitivity of this subsidy to commodity prices and discount rates was analyzed.
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Lee et al. (1991) studied this question.
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