How Much Does it Cost to Maintain the Ecosystem Goods and Services on Grassland Ecosystems

Background

Most beef producers maintain some form of ecosystem goods and services (EGSs) on their operations. This may include ecological functioning related clean water and air, and ecological goods such as forage, wildlife habitat and recreational and cultural opportunities. Protecting or maintaining EGSs sometimes require reductions in potential revenue due to management decisions such as lower stocking rates, letting areas rest, or complete avoidance. While producers don’t always pay these costs out of pocket they do incur negative financial outcomes related to opportunity costs, which, to date have not been measured.

Objectives

•  To estimate the costs borne by cattle producers to provide and maintain a range of EGSs

What they will do

Researchers want to identify the cost to producers for maintaining ecosystems goods and services. Researchers will work with industry and producers to identify EGS that represent those most common on the prairies as well as what optimal management for them looks like. They will then use baseline statistics and costs related to cattle and forage production to evaluate the cost to producers to maintain EGS. They will also develop a tool that will help in the decision making when it comes to tradeoffs to maintaining EGS. They will then conduct a sensitivity analysis on trade-offs.

Implications

This project will provide useful information for producers to understand the cost and trade offs of maintaining EGS on their land and could be used in future conversations with policy makers and NGO’s about the value of this type of service.