"Maximizing the environmental benefits per dollar expended": An economic interpretation and review of agricultural environmental benefits and costs

The 1996 Farm Bill marked a shift in agricultural environmental legislation toward an economic framework that maximizes the environmental benefits per dollar Expended. This article reviews the valuation literature on agricult ural environmental benefits and costs, focusing on both positive (amenity v alues) and negative (ground and surface water contamination) externalities. External benefits and costs are demonstrated to be large, concurrent, and widely varying by location and affected population. The resulting mosaic of benefits and costs suggests a further need to integrate policy and researc h if we are to truly adopt an economic orientation in agricultural environm ental policy.