Open-field burning of agricultural residues emits smoke, black carbon and green-house gases and drifts large proportions of plant nutrients. A payment experiment was conducted with 317 willing farmers from 18 villages in rural Nepal. Out of them 167 farmers, who quoted below a cutoff point participated in the experiment and their straw burning activity, were kept under observation. Over 86% of them respected the agreement and got paid. The results revealed that the farmers’ average willingness to accept to avoid the field burning of rice straw was Rs 5592/ ha. Technological interventions and policy measures are suggested for avoiding the burning.