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Abstract

Land premium added by the increase of environmental quality could motivate farmers to adopt Best Management Practices (BMPs). Local community also demands nearby farms to abate agricultural pollution and implement BMPs. Our study attempts to examine whether land values and local community characteristics can influence BMP adoption in addition to the socioeconomic and demographic characteristics. We aggregate our survey data on BMP adoption conducted between 2011 and 2012 in Kentucky and the public data by using the geographic information, and then use Probit models to estimate choices of BMP adoption. In the model, we measure the land value effect by using percentage differences of farmland values between 2007 and 2012, and approximate the local community characteristic effect by including rural effect, urban effect, residential effect, and local farm business effect. Results show that increasing land values would motivate farmers to adopt additional riparian buffers; the local equine inventory have the positive impact on farmers’ future adoption of animal fences and nutrient management; farms located at the rural communities are less likely to fence off animal from water resources.

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