2006 Annual Report 4d.Progress report. This report serves to document research conducted under a Specific Cooperative Agreement between ARS and The Ohio State University. Additional details concerning the research can be found in the report for the parent CRIS 3604-13000-007-00D, Integrated Drainage Management and Flood Tolerant Cropping Systems for Humid Areas. Economic analysis of the benefits of adopting conservation practices in the Upper Big Walnut was conducted in 2005 through a conjoint analysis, as part of a Master of Science thesis. The results indicate that water quality improvements in the smaller streams of the watershed are the most valuable benefit according to the local residents surveyed, followed by drinking water benefits, and habitat conservation for birds and other upland game. A presentation was made at the 2005 Soil and Water Conservation Society annual meeting, and a paper is currently being prepared to be submitted to a journal. A poster has been developed and was presented at the All Ohio Chapter meeting of the Soil and Water Conservation Society in March, 2006. The poster has been presented at several other meetings as well. A professor and a graduate student in the Environmental Sciences Graduate Program at Ohio State, are working on developing a stochastic dynamic optimization model of nutrient abatement in the upper big walnut watershed. The model assesses the relative costs and benefits of nutrient reductions, adjustments in drainage, implementation of BMPs such as filter strips, and changes in receptor stream hydrology for meeting water quality objectives in the Upper Big Walnut. A deterministic version has been developed, and is being deployed for initial analysis. The stochastic model is currently in progress and a first version will be completed in September, 2006. Review Publications Tennity, C. 2005. A conjoint analysis study of perceived demand in central Ohio for specific agricultural natural resource conservation practices [Ph.D Thesis]. Columbus, OH: Ohio State University. 111 p.