A performance-based approach to agri-environmental policy in Canada

The environmental effects of agriculture are becoming more apparent to the public. As societal values change over time, there will likely be a corresponding shift in agri-environmental policy. Performance-based agri-environmental policy has been identified as a mechanism to provide payments to agricultural producers for the production of ecosystem goods and services (EG&S). This mechanism bases payments on environmental outcomes (i.e., EG&S), rather than inputs or adoption of specific practices. The payment structure assumes that agricultural producers can 'rent' EG&S to the public and that the public are willing to pay for these benefits and is based on a perception that agricultural landowners hold strong property rights to the land.