Analysis of farmers' investment behavior for conservation technologies

This dissertation includes three empirical studies that analyze farmers' investment behavior for conservation technologies in eastern Washington. The first study, "How Do Farmers Who Adopt Multiple Conservation Practices Differ From their Neighbors?" evaluates how farm and farmer characteristics relate to investments in soil conservation practices. The data come from a random sample of 266 farmers in east-central Washington. Unlike past research, this study distinguishes between zero, single and multiple practice adopters. Results revealed that multiple practice adopters contrast more sharply with non-adopters than do a single practice adopters, and single practice adopters differ more from zero practice adopters than from all other farmers. It also shows that multiple practice adopters have larger farms and more education.; The second study "Purchase vs. Rent Decisions: No-till Drill Case Studies" evaluates rent-purchase decisions made by nine long-term no-till farmers from eastern Washington and northern Idaho. Unlike past normative decision support models, this study provides positive information on how the efficiency of actual rent-purchase decisions compares across farms or across geographical regions. Positive size and cost efficiencies for purchasing versus renting were observed in the entire sample due to economies of size and good cost management. Farms in a low precipitation region showed higher efficiency than in a high precipitation region. Farms with above average efficiency planted higher acreage, paid less for drills and had lower repair costs per acre.; The third study, "An Operational Approach for Evaluating Investment Risk: An Application to the No-till Transition" evaluates stochastic net cash flows associated with twenty six no-till transition strategies across a six-year transition for four types of farms in eastern Washington. Transition strategies include combinations of two speeds of adoption and thirteen drill acquisition sequences. This study showed both short and long term safety first business risk favored a gradual transition to no-till. Results revealed that speed of adoption had a larger effect than drill acquisition sequence in achieving a successful transition. High equity farms had a higher chance of success. Slow acreage expansion for smaller farms, especially with a custom or rental drill, is preferred until yield penalties are eliminated.