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Economic Impacts Of The Conservation Reserve Program On Rural Economies

Author

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  • Bengt T. Hyberg

    (ERS, USDA)

  • Michael R. Dicks

    (Oklahoma State University)

  • Thomas Hebert

    (Senate Agricultural Committee)

Abstract

The impacts of a substantial program like the CRP, while significant for the nation, are potentially even more important for local farm dependent economies. This paper illustrates the importance of measuring the distributional impacts of national programs. The impacts of the CRP on 5 industrial sectors were investigated at national, regional, and local levels using an input/output model. The results indicate that the agricultural production sector is most affected, followed by the agricultural inputs sector. The Total Gross Output (TGO) in the agricultural production sector and the agricultural inputs sector in areas dependent on agricultural production were found to decline up to 7 times the national rate. TGO for agriculturally dependent, rural economies decreased up to 35 times the national rate.

Suggested Citation

  • Bengt T. Hyberg & Michael R. Dicks & Thomas Hebert, 1991. "Economic Impacts Of The Conservation Reserve Program On Rural Economies," The Review of Regional Studies, Southern Regional Science Association, vol. 21(1), pages 91-105, Spring.
    • Handle: RePEc:rre:publsh:v21:y:1991:i:1:p:91-105
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    1. repec:rri:bkchap:04 is not listed on IDEAS
    2. William H. Miernyk, 1965. "The Elements of Input-Output Analysis," Wholbk, Regional Research Institute, West Virginia University, number 04, November-.
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    Cited by:

    1. Dicks, Michael R., 2008. "What Future for the U.S. Reserve Programs?," Western Economics Forum, Western Agricultural Economics Association, vol. 7(1), pages 1-10.
    2. Assogba, Noel Perceval & Zhang, Daowei, 2022. "The conservation reserve program and timber prices in the southern United States," Forest Policy and Economics, Elsevier, vol. 140(C).
    3. Shuning Chen & Masaru Kagatsume, 2018. "Impacts of environmental conservation programs on regional economic structural change in Guizhou, China, from 2002 to 2012: an input–output analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    4. LI, Liqing & Ando, Amy W. & Kirwan, Barrett E., 2017. "The Impact of Conservation Programs on Local Employment: A Case of Conservation Reserve Program," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259195, Agricultural and Applied Economics Association.
    5. Soh, Moonwon & Cho, Seong-Hoon & Yu, Edward & Boyer, Christopher & English, Burton, 2018. "Targeting Payments for Ecosystem Services Given Ecological and Economic Objectives," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266502, Southern Agricultural Economics Association.
    6. Daniel Monroe Sullivan, 2002. "Local Governments as Risk Takers and Risk Reducers: An Examination of Business Subsidies and Subsidy Controls," Economic Development Quarterly, , vol. 16(2), pages 115-126, May.
    7. Wu, JunJie & Weber, Bruce, 2012. "Implications of a Reduced Conservation Reserve Program," C-FARE Reports 156625, Council on Food, Agricultural, and Resource Economics (C-FARE).
    8. McGranahan, David A. & Sullivan, Patrick & Hallahan, Charles B., 2003. "The Impact of Conservation Reserve Program Enrollment on Local Job Growth," 2003 Regional Committee NCT-194, October 6-7, 2003; Kansas City, Missouri 132521, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    9. Cho, Seong-Hoon & Soh, Moonwon & English, Burton C. & Yu, T. Edward & Boyer, Christopher N., 2019. "Targeting payments for forest carbon sequestration given ecological and economic objectives," Forest Policy and Economics, Elsevier, vol. 100(C), pages 214-226.
    10. Adam, Brian D. & Hong, Seung Jee & Dicks, Michael R., 2004. "Effects of the Conservation Reserve Program on Elevator Merchandising Margins in Oklahoma," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-14, April.
    11. Liu, Pengfei & Li, Yanggu & Zhang, Wei, 2023. "Local Economic Benefits of the Environmental Quality Incentives Program: Evidence from Rural Housing Markets," 2023 Annual Meeting, July 23-25, Washington D.C. 335843, Agricultural and Applied Economics Association.
    12. Sullivan, Patrick & Hellerstein, Daniel & Hansen, LeRoy T. & Johansson, Robert C. & Koenig, Steven R. & Lubowski, Ruben N. & McBride, William D. & McGranahan, David A. & Roberts, Michael J. & Vogel, S, 2004. "The Conservation Reserve Program: Economic Implications for Rural America," Agricultural Economic Reports 33987, United States Department of Agriculture, Economic Research Service.
    13. Hamilton, Lynn L. & Levins, Richard A., 1998. "Local Economic Impacts Of Conservation Reserve Program Enrollments: A Sub-County Analysis," Conference Papers 14486, University of Minnesota, Center for International Food and Agricultural Policy.
    14. Paul B. Siegel & Thomas G. Johnson, 1993. "Measuring The Economic Impacts Of Reducing Environmentally Damaging Production Activities," The Review of Regional Studies, Southern Regional Science Association, vol. 23(3), pages 237-254, Winter.
    15. Daniel Runfola & Geeta Batra & Anupam Anand & Audrey Way & Seth Goodman, 2020. "Exploring the Socioeconomic Co-benefits of Global Environment Facility Projects in Uganda Using a Quasi-Experimental Geospatial Interpolation (QGI) Approach," Sustainability, MDPI, vol. 12(8), pages 1-13, April.

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