Valuing the Margins: Identifying Marginal Land Within Fields and Valuing the Benefits of Conversion to Perennial Grassland

Commodities

Practices

Even high-yielding fields often have marginal, or unprofitable, areas that cost the farmer more than they generate in revenue due to issues like erosion, waterlogging, or shading. These marginal areas also contribute to air and water pollution, so it would be beneficial to society and the farmer’s bottom line to identify these areas as potential targets for conversion to less expensive, more ecologically sustainable vegetation such as perennial grassland. However, even when groups such as Pheasants Forever work with farmers to identify marginal areas, cost-saving conservation practices are not always implemented. Furthermore, economic estimates of profitability do not capture the whole picture: many potential benefits are not considered, such as clean air and water for rural communities. 

We will work with compensated farmer-partners from across Wisconsin to identify marginal areas in their fields. To do this, we will use farmers’ yield monitor data and farm expenses to map profitability within fields, using methods we developed while mapping profitability for agricultural research stations. We will also use environmental models and farm-specific environmental data (e.g., soil type, slope) to estimate the ecosystem services that cost-saving conversion to perennial grassland would provide. Using valuation methods from the field of environmental economics, we will estimate the dollar-value of those services. Then, we will use those estimates to identify “socially marginal” areas, or areas that would serve the public, including farmers, better as grassland than as row crops. Throughout this process, we will work with farmers to understand the potential logistical burdens of setting aside in-field acres for conversion to perennials, such as maneuverability of farm equipment. 

By working with farmers to identify these areas, our farmer-scientist collaboration will reveal synergistic opportunities for conservation that improve both farm profitability and field-level environmental sustainability. Farmer-partners will receive maps of areas in their fields that would serve them and society better as grassland. Extension staff, farmers, and others will gain access to a publicly available protocol describing how to produce their own maps and the practical constraints of in-field conservation. Researchers will gain a better understanding of the prevalence of economically and socially marginal land. These learning outcomes will also improve our understanding of how policy should balance production and stewardship for the benefit of society. 

By identifying economically and socially marginal areas within row-crop fields, this research will impact farmers, conservation groups, policymakers, and researchers. Farmers will have increased knowledge of unprofitable areas within their fields and heightened awareness of the benefits of conservation, as well as a broader understanding of the prevalence of marginal land across Wisconsin. In the longer term, this research may help farmers decide to convert marginal land to perennial grassland to improve farm profitability and increase environmental benefits for society.  

Farmers and conservation groups may also use the methods shared by this project to search for marginal areas in other fields and on other farms. By improving understanding of the logistical constraints of in-field conversion to grasslands, we will also support rural conservation groups such as Pheasants Forever in their work with farmers. 

Also, by estimating the dollar-value of conservation versus production in these fields, this research can estimate the optimal balance of production and conservation, determined by their value to the farmer and society. This in turn may inform policy that rewards farmers who balance production with conservation.  

Researchers will gain a better understanding of how much marginal land exists, and how well this estimate aligns with estimates based on proxy measurements like soil surveys, satellite data, and productivity indexes. Additionally, to our knowledge, application of the “socially marginal” concept to agriculture has never been attempted before, so our efforts will represent a novel research contribution and hopefully provide a foundation for others to build upon.