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Green Payments As Foreshadowed By Eqip

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  • Batie, Sandra S.
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    Abstract

    This paper addresses the potential of the Environmental Quality Incentives Program to become the first true green payment program, one which is not directly linked to farm income goals as all conservation programs have been in the past, even in contrast to the Conservation Reserve Program and the now obsolete Agricultural Conservation Program. EQIP is thus discussed as a new generation of conservation programs which are General Agreement on Tariffs and Trade-legal (no payments to farmers which may influence trade) and more targeted to actual agro-environmental problems than the traditional conservation programs. In the next sections, the paper raises two important questions: First, to what extent should green payments substitute for traditional commodity payments, as they are being phased out? If taking water quality problems into account, EQIP does not reach the geographic areas of the highest commodity program payments, although substitution was never intended and has inherent problems. The paper then looks at EQIP as a green payment program, discussing to what extent EQIP reflects the desired characteristics of a GATT-legal green payment program. Three such characteristics are discussed as hurdles for a successful EQIP implementation: a program has to be targeted, tailored and transparent. Additionally, rent-seeking by various private interests, lack of science-based data, agency and farmer inertia and the complexity of the program are all challenges which must be faced. The study concludes with a discussion of the future of green payments.

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    File URL: http://purl.umn.edu/11750
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    Bibliographic Info

    Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11750.

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    Date of creation: 1999
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    Handle: RePEc:ags:midasp:11750

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    Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
    Phone: (517) 355-4563
    Fax: (517) 432-1800
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    Web page: http://www.aec.msu.edu/agecon/
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    Keywords: Environmental Economics and Policy;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Lynch, Sarah & Smith, Katherine R., 1994. "Lean, Mean and Green ... Designing Farm Support Programs in a New Era," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134108.
    2. Batie, Sandra S. & Schulz, Mary A. & Schweikhardt, David B., 1997. "A Continuation Of Environmental Conservation Policy: The Conservation Reserve Program," Staff Papers 11519, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Batie, Sandra S. & Schulz, Mary A. & Schweikhardt, David B., 1998. "The Environmental Quality Incentives Program: Locally Managing Natural Resources," Staff Papers 11822, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:
    1. Cooper, Joseph C., 2001. "A Joint Framework for Analysis of Agri-Environmental Payment Programs," 2001 Annual meeting, August 5-8, Chicago, IL 20493, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. McCann, Laura M.J. & Nunez, Jennifer, 2005. "Who Participates in EQIP?," 2005 Annual meeting, July 24-27, Providence, RI 19446, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Horan, Richard D. & Claassen, Roger & Agapoff, Jean & Zhang, Wei, 2004. "Instrument Choice And Budget-Constrained Targeting," 2004 Annual meeting, August 1-4, Denver, CO 20387, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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