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A National-Level Economic Analysis of Conservation Reserve Program Participation: A Discrete Choice Approach

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  • Konyar, Kazim
  • Osborn, C. Tim
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    Abstract

    The decision to participate in a Government program can be viewed as a discrete choice problem, where a farmer will choose to sign up for the program if the expected utility of participating outweighs the expected utility of not participating. In this article, the probability of farmer participation in the Conservation Reserve Program (CRP) is modeled as a discrete choice problem and the model is estimated based on data for the entire United States. Results from the first three CRP signup periods indicate that farm tenure, farm size, land value, farmer age, erosion rate, and expected net returns with and without participation influence the probability of CRP participation. These results can be useful in evaluating how farmers might react to similar programs.

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    Bibliographic Info

    Article provided by United States Department of Agriculture, Economic Research Service in its journal Journal of Agricultural Economics Research.

    Volume (Year): (2)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:ags:uersja:139017

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    Related research

    Keywords: Conservation Reserve Program; discrete choice approach; logistic regression; minimum chi-square method; Environmental Economics and Policy;

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