ROLE OF VOLUNTARY PROGRAMS IN AGRICULTURAL NONPOINT POLLUTION POLICY

Voluntary programs' effectiveness in reducing agricultural pollution i s under debate in the professional literature, within government regul atory agencies, and among legislators. In general, non-farm business o wners bear little or none of the costs of environmental degradation th at their business activities cause. However, farmers who reside on the farm may bear some of the costs associated with using chemicals. As a result, voluntary programs encouraging adoption of management practic es that simultaneously improve on-farm and off-farm environmental qual ity may not require subsidizing farmers for their full loss in profits . However, farmers likely will not adopt regulatory agencies' recommen ded management practices that do not positively affect on-farm environ mental quality unless subsidies exceed full adoption costs.