Species diversity is expected to promote stability in ecosystem functions such as productivity. One mechanism that may contribute to stability is compensatory dynamics. Compensatory dynamics, which occur when an increase in density (biomass) of one species is associated with a decrease in another, are indicated by negative species covariances. These may be driven by competition or negatively correlated species responses to environmental drivers.

The study examines farmers’ willingness to accept compensation to adapt environmental stewardship practices in Michigan based on the analysis of survey data and advances the literature on adoption of agro-environmental practices by developing a supply function for crop acreage managed for environmental stewardship. Results show that farmers’ acreage enrollment depends chiefly on farm size and the perception of environmental improvements from the practices.