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Agronomy Journal Abstract - Crop Economics, Production & Management

Valuing Supporting Soil Ecosystem Services in Agriculture: A Natural Capital Approach


This article in AJ

  1. Vol. 107 No. 5, p. 1809-1821
    Received: Nov 21, 2014
    Accepted: Mar 01, 2015
    Published: July 10, 2015

    * Corresponding author(s): mark.brady@slu.se
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  1. Mark V. Brady *a,
  2. Katarina Hedlundb,
  3. Rong-Gang Congb,
  4. Lia Hemerikc,
  5. Stefan Hotesd,
  6. Stephen Machadoe,
  7. Lennart Mattssonf,
  8. Elke Schulzg and
  9. Ingrid K. Thomsenh
  1. a Dep. of Economics, Swedish Univ. of Agricultural Sciences, P.O. Box 730, S-220 07 Lund, Sweden
    b Dep. of Biology and Centre for Environmental and Climate Research, Lund Univ., Sölvegatan 37, 223 62 Lund, Sweden
    c Biometris, Dep. of Mathematical and Statistical Methods, P.O. Box 16, 6700 AA Wageningen, the Netherlands
    d Dep. of Ecology, Philipps Univ., Karl-v.-Frisch-Str. 8, 35043 Marburg, Germany
    e Columbia Basin Agricultural Research Center, Oregon State Univ., P.O. Box 370, Pendleton, OR 97801
    f Dep. of Soil and Environment, Swedish Univ. of Agricultural Sciences, P.O. Box 7014, S-750 07 Uppsala, Sweden
    g Helmholtz Centre for Environmental Research, Theodor-Lieser-Straße 4, 06120 Halle, Germany
    h Dep. of Agroecology, Aarhus Univ., Blichers Allé 20, P.O. Box 50, DK-8830 Tjele, Denmark


Soil biodiversity through its delivery of ecosystem functions and attendant supporting ecosystem services—benefits soil organisms generate for farmers—underpins agricultural production. Yet lack of practical methods to value the long-term effects of current farming practices results, inevitably, in short-sighted management decisions. We present a method for valuing changes in supporting soil ecosystem services and associated soil natural capital—the value of the stock of soil organisms—in agriculture, based on resultant changes in future farm income streams. We assume that a relative change in soil organic C (SOC) concentration is correlated with changes in soil biodiversity and the generation of supporting ecosystem services. To quantify the effects of changes in supporting services on agricultural productivity, we fitted production functions to data from long-term field experiments in Europe and the United States. The different agricultural treatments at each site resulted in significant changes in SOC concentrations with time. Declines in associated services are shown to reduce both maximum yield and fertilizer-use efficiency in the future. The average depreciation of soil natural capital, for a 1% relative reduction in SOC concentration, was 144 € ha–1 (SD 47 € ha–1) when discounting future values to their current value at 3%; the variation was explained by site-specific factors and the current SOC concentration. Moreover, the results show that soil ecosystem services cannot be fully replaced by purchased inputs; they are imperfect substitutes. We anticipate that our results will both encourage and make it possible to include the value of soil natural capital in decisions.

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