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Farm Production Decisions Under Cross and Conservation Compliance

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  • Dana L. Hoag
  • Herb A. Holloway

Abstract

The success of soil conservation compliance (CC) hinges on participation in commodity programs. Using mixed integer programming, the profitability of participation in commodity programs was examined on seventeen surveyed North Carolina farms. Without CC, cross compliance in commodity programs increased projected soil erosion by over 80% when participation increased from 30% to nearly 90%. With CC, erosion fell by two-thirds at the high participation level but decreased by only 1% with low participation. Individual farm acreage base and crop yield strongly affected the profitability of CC. Compliance is increasingly profitable on farms with more base acreage and higher yields.

Suggested Citation

  • Dana L. Hoag & Herb A. Holloway, 1991. "Farm Production Decisions Under Cross and Conservation Compliance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 184-193.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:1:p:184-193.
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    File URL: http://hdl.handle.net/10.2307/1242894
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    Citations

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    Cited by:

    1. Joyce Willock & Ian J. Deary & Gareth Edwards‐Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally‐Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303, May.
    2. Doering, Otto & Smith, Katherine R., 2012. "Examining the Relationship of Conservation Compliance and Farm Program Incentives," C-FARE Reports 156624, Council on Food, Agricultural, and Resource Economics (C-FARE).
    3. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    4. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    5. Wu, Shunxiang & Walker, David J. & Brusven, Merlyn A., 1997. "Economic And Environmental Impacts Of Planting Flexibility And Conservation 1990 Farm Bills For Future Farm Legislation," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-13, October.
    6. Gallagher, Paul W. & Dikeman, Mark & Fritz, John & Wailes, Eric & Gauthier, Wayne & Shapouri, Hosein, 2003. "Supply and Social Cost Estimates for Biomass from Crop Residues in the United States," ISU General Staff Papers 200304010800001493, Iowa State University, Department of Economics.
    7. Wu, Shunxiang & Walker, David J. & Brusven, Merlyn A., 1998. "The Efficiency And Effectiveness Of Conservation Compliance Under The 1996 Farm Bill," A.E. Research Series 305158, University of Idaho, Department of Agricultural Economics and Rural Sociology.

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