The first part of this paper discusses the scientific and economic basis for replacing existing commodity and conservation policies with a PES system. To support the transition from the current policy regime, policy decision-makers will need to know how to design efficient mechanisms for the provision of ecosystem services from agriculture, along with estimates of their environmental and economic effects. Accordingly, the second section of the paper discusses efficient mechanism design for PES, and the third discusses the current capability to quantify agricultural externalities and the effects of implementing a policy based on PES. The paper concludes with an assessment of the technical, economic, and political feasibilities of an agricultural policy based on PES.
See PDF article here: Payments for Ecosystem Services and U.S. Farm Policy by John M. Antle