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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
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    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.

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    Bibliographic Info

    Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Information Bulletin with number 121803.

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    Date of creation: Mar 2012
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    Handle: RePEc:ags:uersib:121803

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    Related research

    Keywords: Direct payment; crop insurance; conservation compliance; sodbuster; swampbuster; Environmental Economics and Policy; Land Economics/Use;

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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 Economics Reports 34033, United States Department of Agriculture, Economic Research Service.
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