THE OPTIMAL USE OF PRAIRIE POTHOLE WETLANDS: AN ECONOMIC PERSPECTIVE

Abstract

This study assesses the optimal use of prairie pothole wetlands for two areas in Saskatchewan using evaluation methods developed by the "Wetlands are not Wastelands" project undertaken by Wildlife Habitat Canada and Environment Canada. These methods involved identifying significant wetland functions and assessing their potential environmental, economic and social values. These values were then compared against the net value of agricultural output that could be obtained from wetland drainage for typical farms in the King George and Lost River Areas.The results demonstrate the dilemma of wetland management: That is, what is best for the farmer is not best for society at large. Yet, as farmers are the landowners and many wetlands benefits are non-market or occur in other jurisdictions, drainage and cultivation still continue and are actually encouraged through farm subsidies and agricultural policy. To secure wetlands for preservation purposes, farmers must be adequately compensated for their potential loss of revenues. This has some important ramifications for existing wetland conservation programs.