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Abstract
This research project estimated on-farm costs and benefits associated with wetland drainage in east-central Saskatchewan. A Monte Carlo simulation was used in conjunction with NPV analysis to examine the economics of drainage for a representative farm in the study area. The main objectives were to determine the economic feasibility of drainage, ascertain the value of drained lands to farm operators, and assess the risk of further wetland loss in the region.
Findings indicated that surface drainage projects conducted by farm operators are economically feasible and that future wetland loss can be expected in the study area. An estimate of about 35%--40% of remaining wetland area is potentially at risk of drainage. Public policy solutions would be necessary to arrest further wetland declines. Potential incentive payments, one of several policy instruments that could be used for wetland conservation, are estimated in this analysis.
