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The efficiency of soil conservation investments and economic implications for change

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  • Nef, Dennis LaMar

Abstract

The justification for government investment in soil conservation is reviewed. Problems with criteria presently used in determining areas to receive government conservation assistance are discussed. An intertemporal profit maximizing model is developed to obtain optimal soil use decision rules. Based on the theoretical model, the implicit price of a ton of soil is calculated for areas in Iowa and the Corn Belt. The results show that soil conservation benefits vary by region and soil characteristics. The benefit measure provides a basis for targeting conservation assistance to those areas with the greatest need. The adoption of conservation practices is modeled to determine the effects of soil, farm and regional characteristics on the practice selection process. The results imply that cross compliance programs and best management practices should be developed with care.

Suggested Citation

  • Nef, Dennis LaMar, 1983. "The efficiency of soil conservation investments and economic implications for change," ISU General Staff Papers 198301010800009948, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198301010800009948
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