Significance Ecological research suggests that greater biodiversity could lead to greater economic value, even for private owners of “working” land. However, the studies from which such a conclusion might be inferred do not account for all relevant information in a coherent economic framework. Our paper applies standard economic theory to rigorously account for costs, quality, and risk. Results indicate that higher levels of biodiversity than are typically observed on commercial grasslands would maximize landowner value in the experimental grassland we study. Greater private benefits from biodiversity could encourage private investment in biodiversity and reduce the cost of public conservation efforts.