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Abstract

Environmental risk management is the process of measuring and/or assessing environmental risk and developing strategies to manage it. One strategy used in Canadian agriculture to manage environmental risk is the implementation of beneficial management practices (BMPs). This paper provides a summary of a larger research project which explored farm profitability before and after participation in beneficial management practices, specifically those related to crop nutrients. Based on producer perceptions and the assumptions used in this analysis, the results of this study indicate that the majority of the selected BMPs, including soil testing, minimum tillage, no-till and nutrient management planning, improved profitability for the representative farms. The profitability of farms using variable rate fertilization depended on the crop grown and the province in which the BMP was practiced. In all cases, the models suggested that buffer strips reduced expected net revenue. To maximize profitability, a producer needs to consider all aspects of their farm. Prosperity will depend not only on applying best practices to their operation, but to the environment as well.

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