Estimating the ex ante adoption determinants of novel cropping systems with nonpecuniary benefits

Landowners who value the nonpecuniary benefits of novel cropping systems may be more likely to adopt those systems in response to new market opportunities. We examine ex ante adoption decisions for bioenergy crops in Wisconsin using stated preference data from nonoperator landowners. Bioenergy crops produce biomass, a private good, and may jointly contribute to civic or environmental public goods. We find that pecuniary and nonpecuniary benefits influence landowner decisions, but the effects differ by annual and perennial crop types. Landowners may trade pecuniary for nonpecuniary benefits when equating the marginal utility of land uses, resulting in lower willingness-to-accept values for adoption.