Economic Analysis of the Best Management Practices (BMPs) in Louisiana Sugarcane Production

Agriculture has been identified as one of the major sources of nonpoint water pollution due to discharges running off farmland. This study assessed the current adoption of Best Management Practices (BMPs) in the Louisiana sugarcane industry and provided policy recommendations based on the empirical results. Fifteen BMPs recommended by Louisiana State University Agricultural Center were examined in three categories: Soil Erosion and Sediment Control, Nutrient Management, and Pesticide Management. Based on neoclassical economic principles of individuals utility maximization, this study evaluated seven multivariate probit models using primary data collected from a mail survey of Louisianas sugarcane producers. The results indicated that remarkable progress has been achieved in BMPs promotion since 1999. The primary factors that significantly impacted BMP adoption were: awareness of the Master Farmer Program for sugarcane, farm size, ownership, and farmers risk attitude. It is recommended that educational programs provided by LSU AgCenter continue to play a vital role in promoting sugarcane BMPs .