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An Accounting Tradeoff Between WRP and Government Payments

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  • Ibendahl, Gregory A.
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    Abstract

    The Wetlands Reserve Program (WRP) can provide farmers financial compensation in exchange for retiring marginal lands from standard agricultural practices. Often overlooked in the analysis is the cost to the government to implement these programs. This paper examines two issues: first do farmers benefit from WRP enrollment and second does the government say money with WRP enrollment. With WRP the government no longer has to pay yearly direct, counter-cyclical, LDP, or crop insurance payments. Results from three Mississippi counties show that for certain crops that have historically paid a lot in government payments, WRP can be cheaper for the government. For farmers, the decision likely depends upon other revenue sources that can take the place of lost crop production.

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    File URL: http://purl.umn.edu/6764
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6764.

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    Date of creation: 2008
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    Handle: RePEc:ags:saeaed:6764

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    Keywords: Land Economics/Use; Public Economics;

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    Cited by:
    1. Jenkins, W. Aaron & Murray, Brian C. & Kramer, Randall A. & Faulkner, Stephen P., 2010. "Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley," Ecological Economics, Elsevier, vol. 69(5), pages 1051-1061, March.

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