Farmers value on-farm ecosystem services as important, but what are the impediments to participation in PES schemes?

Optimal participation in market-based instruments such as PES (payment for ecosystem services) schemes is a necessary precondition for achieving large scale cost-effective conservation goals from agricultural landscapes. However farmers' willingness to participate in voluntary conservation programmes is influenced by psychological, financial and social factors and these need to be assessed on a case-by-case basis. In this research farmers' values towards on-farm ecosystem services, motivations and perceived impediments to participation in conservation programmes are identified in two local land services regions in Australia using surveys. Results indicated that irrespective of demographics such as age, gender, years farmed, area owned and annual gross farm income, farmers valued ecosystem services important for future sustainability. Non-financial motivations had significant associations with farmer's perceptions regarding attitudes and values towards the environment and participation in conservation-related programmes. Farmer factors such as lack of awareness and unavailability of adequate information were correlated with non-participation in conservation-based programmes. In the current political context, government uncertainty regarding schemes especially around carbon sequestration and reduction was the most frequently cited impediment that could deter participation. Future research that explores willingness of farmers towards participation in various types of PES programmes developed around carbon reduction, water quality provision and biodiversity conservation, and, duration of the contract and payment levels that are attractive to the farmers will provide insights for developing farmer-friendly PES schemes in the region. •Farmers value on-farm ecosystem services as important for sustainability.•Non-financial motivations were correlated with farmers’ views on the environment.•Government uncertainty was a key impediment to participation in PES schemes.