Abstract

Canada’s agrifood sector is significant within the economy, contributing over 2.3 million jobs along with $144 billion annually in GDP. Expansion of the farmland base since European settlement has provided an abundance of land, but there are concerns about the ecological cost of continued expansion. Using a wetland conservation cost model with spatially explicit dimensions, this research estimates the economic benefits of wetland drainage in a sub-basin of the Assiniboine West Watershed District in Manitoba, concluding that soil productivity and commodity prices significantly affect decisions to drain wetlands. Options for optimal policy based upon specific ecosystem value are outlined, and policy costs are estimated.

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