Abstract
In 2009, Wisconsin implemented a new incentive program aimed at encouraging the adoption of nutrient management plans and improving water quality. This program, the Farmland Preservation Program, encourages this adoption via three tiers of tax credit incentives. While prior research has explored this program’s impact on statewide water quality, this thesis pioneers the use of farm-level data to scrutinize short-term water quality impacts within a single county. This investigation addresses one key question: does nutrient management plan adoption enhance water quality? I answer this first descriptively by exploring patterns in water quality and nutrient management plan adoption across the state of Wisconsin. Second, I employ a two-stage least squares instrumental variable regression with fixed effects to identify nutrient management plans impact on water quality. The methodology reveals that a 10-percentage increase in nutrient management plan adoption in a sub-watershed is associated with a 6.4% decrease in total ammonia concentrations. While no impact on total phosphorus levels was found, existing literature suggests that legacy effects would likely inhibit a reduction in total phosphorus levels in the short term.
