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A National-Level Economic Analysis of Conservation Reserve Program Participation: A Discrete Choice Approach

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  • Konyar, Kazim
  • Osborn, C. Tim

Abstract

The decision to participate in a Government program can be viewed as a discrete choice problem, where a farmer will choose to sign up for the program if the expected utility of participating outweighs the expected utility of not participating. In this article, the probability of farmer participation in the Conservation Reserve Program (CRP) is modeled as a discrete choice problem and the model is estimated based on data for the entire United States. Results from the first three CRP signup periods indicate that farm tenure, farm size, land value, farmer age, erosion rate, and expected net returns with and without participation influence the probability of CRP participation. These results can be useful in evaluating how farmers might react to similar programs.

Suggested Citation

  • Konyar, Kazim & Osborn, C. Tim, 1990. "A National-Level Economic Analysis of Conservation Reserve Program Participation: A Discrete Choice Approach," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(2), pages 1-8.
    • Handle: RePEc:ags:uersja:139017
    DOI: 10.22004/ag.econ.139017
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    References listed on IDEAS

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    1. Katherine Reichelderfer & William G. Boggess, 1988. "Government Decision Making and Program Performance: The Case of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 1-11.
    2. David E. Ervin & Michael R. Dicks, 1988. "Cropland Diversion for Conservation and Environmental Improvement: An Economic Welfare Analysis," Land Economics, University of Wisconsin Press, vol. 64(3), pages 256-268.
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    Cited by:

    1. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276.
    2. Lynch, Lori & Hardie, Ian W. & Parker, Douglas D., 2002. "Analyzing Agricultural Landowners' Willingness To Install Streamside Buffers," Working Papers 28570, University of Maryland, Department of Agricultural and Resource Economics.
    3. Parks, Peter J. & Schorr, James P., 1997. "Sustaining Open Space Benefits in the Northeast: An Evaluation of the Conservation Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 85-94, January.
    4. Peter Howley & Stephen Hynes & Cathal O'Donoghue, 2012. "Explaining the non-economic behaviour of farm foresters: The effect of productivist and lifestyle motivations," Working Papers 1203, Rural Economy and Development Programme,Teagasc.
    5. Ghimire, Ramesh & Green, Gary T. & Poudyal, Neelam C. & Cordell, H. Ken, 2014. "Do Outdoor Recreation Participants Place their Lands in Conservation Easements?," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162451, Southern Agricultural Economics Association.
    6. Lee, Meongsu, 2018. "Impacts of Net Returns Per Acre on Land Use after Conservation Reserve Program Contract Expiration," 2018 Annual Meeting, August 5-7, Washington, D.C. 273877, Agricultural and Applied Economics Association.
    7. Chen, Xiaoxuan & Ando, Amy Whritenour, 2006. "Optimal Contract Length for Voluntary Land Conservation Programs," 2006 Annual meeting, July 23-26, Long Beach, CA 21259, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Sun, Xing & Sun, Changyou & Munn, Ian A. & Hussain, Anwar, 2009. "Knowledge of three regeneration programs and application behavior among Mississippi nonindustrial private forest landowners: A two-step sample selection approach," Journal of Forest Economics, Elsevier, vol. 15(3), pages 187-204, August.
    9. Sullivan, Patrick & Hellerstein, Daniel & Hansen, LeRoy T. & Johansson, Robert C. & Koenig, Steven R. & Lubowski, Ruben N. & McBride, William D. & McGranahan, David A. & Roberts, Michael J. & Vogel, S, 2004. "The Conservation Reserve Program: Economic Implications for Rural America," Agricultural Economic Reports 33987, United States Department of Agriculture, Economic Research Service.
    10. Lynch, Lori & Lovell, Sabrina J., 2001. "Factors Influencing Participation In Agricultural Land Preservation Programs," Working Papers 28590, University of Maryland, Department of Agricultural and Resource Economics.
    11. Valdivia, Corinne & Konduru, Srinivasa & Raedeke, Andrew & Green, John J., 2003. "Land Owner Characteristics and Perceptions in Northeast and Southeast Missouri: The Economic and Social Value of Flood Plain Agroforestry to Rural Development Projects," Working Papers 92883, University of Missouri Columbia, Department of Agricultural Economics.
    12. Sheng Gong & Jason.S. Bergtold & Elizabeth Yeager, 2021. "Assessing the joint adoption and complementarity between in-field conservation practices of Kansas farmers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    13. Isik, Murat & Yang, Wanhong, 2004. "An Analysis of the Effects of Uncertainty and Irreversibility on Farmer Participation in the Conservation Reserve Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-18, August.
    14. Dongyang Xiao & Haipeng Niu & Liangxin Fan & Suxia Zhao & Hongxuan Yan, 2019. "Farmers’ Satisfaction and its Influencing Factors in the Policy of Economic Compensation for Cultivated Land Protection: A Case Study in Chengdu, China," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    15. Hung-Hao Chang & Richard N. Boisvert, 2009. "Distinguishing between Whole-Farm vs. Partial-Farm Participation in the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 85(1), pages 144-161.
    16. Boisvert, Richard N. & Chang, Hung-Hao, 2005. "Explaining Participation in the Conservation Reserve Program and its Effects on Farm Productivity and Efficiency," 2005 Annual meeting, July 24-27, Providence, RI 19321, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Kingsbury, Leigh & Boggess, William G., 1999. "An Economic Analysis Of Riparian Landowners' Willingness To Participate In Oregon'S Conservation Reserve Enhancement Program," 1999 Annual meeting, August 8-11, Nashville, TN 21641, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Isik, Murat, 2005. "A Theoretical and Empirical Analysis of Conservation Reserve Program Participation under Uncertainty," 2005 Annual meeting, July 24-27, Providence, RI 19264, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. McLean-Meyinsse, Patricia E. & Hui, Jianguo & Joseph, Randolph, Jr., 1994. "An Empirical Analysis Of Louisiana Small Farmers' Involvement In The Conservation Reserve Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-7, December.
    20. Jordan F. Suter & Gregory L. Poe & Nelson L. Bills, 2008. "Do Landowners Respond to Land Retirement Incentives? Evidence from the Conservation Reserve Enhancement Program," Land Economics, University of Wisconsin Press, vol. 84(1), pages 17-30.
    21. Ando, Amy W. & Getzner, Michael, 2006. "The roles of ownership, ecology, and economics in public wetland-conservation decisions," Ecological Economics, Elsevier, vol. 58(2), pages 287-303, June.
    22. G. Yoganandan & Abdul Aziz Abdul Rahman & M. Vasan & Abdelrhman Meero, 2022. "Evaluating agripreneurs’ satisfaction: exploring the effect of demographics and emporographics," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.

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