Using behavioral economics to promote diversified crop rotations: Lab and field experiments on how policy and behavioral instruments influence farmers’ decision

Lead Applicant: Tongzhe Li

Research Priority: Sustainable Production Systems 

Program Type: Tier 1

Funding Cycle: 2023/2024

Research Centre: NA

Research Summary: An evidence-based approach will be used to quantitatively assess how various policy, economic and behavioral instruments influence farmers’ decisions on diversified crop rotations. Laboratory economic experiments will be implemented to examine if a given amount of subsidy is more effective when its allocation prioritizes early adopters or their counterparts. In addition, field experiments will be implemented in the format of experimental auction on diversified crop seeds. Farmers will place bids under various scenarios including different nudges, message framing, and education materials about the potential markets. This project will therefore establish the causal effects on how different subsidizing strategies, at the interaction with different outreach instruments, change the adoption of diversified crop rotations as a best management practice (BMP) in Ontario. With the new data generated regarding farmers’ decision-making, this research will also shed light on evidence-based policy making in the agri-food sector to help overcome barriers to BMP adoption.