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The Future of Environmental Compliance Incentives in U.S. Agriculture: The Role of Commodity, Conservation, and Crop Insurance Programs

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  • Claassen, Roger

Abstract

In recent years, direct payments—a type of farm commodity program payment—have made up a large share of Federal agriculture assistance that could be withheld from farmers who fail to comply with highly erodible land conservation (conservation compliance and sodbuster) or wetland conservation (swampbuster) provisions, known collectively as environmental compliance requirements. If direct payments are sharply reduced or eliminated to help reduce the Federal budget defi cit, compliance incentives would be reduced on many farms, potentially increasing environmental quality problems. Some farmers will still be subject to compliance through existing Federal agricultural programs(e.g., conservation or disaster programs) or programs that may succeed direct payments. Making federally subsidized crop insurance subject to compliance could also make up some of the lost incentive to farmers.

Suggested Citation

  • Claassen, Roger, 2012. "The Future of Environmental Compliance Incentives in U.S. Agriculture: The Role of Commodity, Conservation, and Crop Insurance Programs," Economic Information Bulletin 121803, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:121803
    DOI: 10.22004/ag.econ.121803
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    File URL: https://ageconsearch.umn.edu/record/121803/files/eib-94.pdf
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    References listed on IDEAS

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    1. Claassen, Roger & Morehart, Mitchell J., 2006. "Greening Income Support and Supporting Green," Economic Brief 34097, United States Department of Agriculture, Economic Research Service.
    2. Claassen, Roger & Breneman, Vincent E. & Bucholtz, Shawn & Cattaneo, Andrea & Johansson, Robert C. & Morehart, Mitchell J., 2004. "Environmental Compliance In U.S. Agricultural Policy: Past Performance And Future Potential," Agricultural Economic Reports 34033, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Marc Ribaudo & Nigel Key & Stacy Sneeringer, 2017. "The Potential Role for a Nitrogen Compliance Policy in Mitigating Gulf Hypoxia," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 458-478.
    2. Meyer, Claas & Matzdorf, Bettina & Müller, Klaus & Schleyer, Christian, 2014. "Cross Compliance as payment for public goods? Understanding EU and US agricultural policies," Ecological Economics, Elsevier, vol. 107(C), pages 185-194.

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    Keywords

    Environmental Economics and Policy; Land Economics/Use;

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