In this study, we propose a concise framework that integrates stakeholder insights, specifically from farmers, into hydrological modeling (Soil and Water Assessment Tool Plus, SWAT + ), to enhance the efficacy of potential watershed management policies. By incorporating farmers’ behavioral responses to policy changes within the SWAT + model, we bridge the gap between econometric and hydrological modeling. This interdisciplinary approach captures the dynamic interactions between stakeholders and ecosystem health, offering a novel perspective on environmental management. Our methodology includes surveys to gauge farmers’ reactions to policy changes and quantify the adoption of agricultural best management practices, forecasting the impact of policy changes on land management and subsequent impacts on ecosystem health. This integration facilitates a more realistic representation of socio-environmental systems, underscoring the importance of aligning policy interventions with the practical realities faced by those directly impacting and interacting with the ecosystems. Through this framework, we propose a pathway towards more effective and sustainable environmental policies, emphasizing the critical role of incorporating stakeholder perspectives into model development and decision-making processes.