IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v75y2018icp15-23.html
   My bibliography  Save this article

Changes in cropland area in the United States and the role of CRP

Author

Listed:
  • Hendricks, Nathan P.
  • Er, Emrah

Abstract

An understanding of the main drivers of land-use change is critical for policy recommendations that aim to meet the challenge of food and environmental security over the coming decades. Here we show that agricultural policy exerts substantial influence on cropland area in the United States through administration of the Conservation Reserve Program (CRP). Looking at changes in the CRP over time and an understanding of how the program is managed suggest that the government adjusts enrolled acres in response to changing market conditions to achieve supply management objectives and due to budgetary reasons. The projected decrease of 12.8 million acres of CRP from 2007 to 2017 is estimated to decrease corn and soybean prices by 8.9% and 5.4%, while a hypothetical return to 2007 CRP acreage is estimated to increase corn and soybean prices by 12.0% and 7.3%.

Suggested Citation

  • Hendricks, Nathan P. & Er, Emrah, 2018. "Changes in cropland area in the United States and the role of CRP," Food Policy, Elsevier, vol. 75(C), pages 15-23.
  • Handle: RePEc:eee:jfpoli:v:75:y:2018:i:c:p:15-23
    DOI: 10.1016/j.foodpol.2018.02.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919217305560
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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. Wright, Brian D, 1979. "The Effects of Ideal Production Stabilization: A Welfare Analysis Under Rational Behavior," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1011-1033, October.
    3. Martin D.D. Evans & Dagfinn Rime, 2017. "Exchange rates, interest rates and the global carry trade," Working Paper 2017/14, Norges Bank.
    4. Martin D. D. Evans & Richard K. Lyons, 2017. "Meese-Rogoff Redux: Micro-Based Exchange-Rate Forecasting," World Scientific Book Chapters, in: Studies in Foreign Exchange Economics, chapter 11, pages 457-475, World Scientific Publishing Co. Pte. Ltd..
    5. Kanlaya J. Barr & Bruce A. Babcock & Miguel A. Carriquiry & Andre M. Nassar & Leila Harfuch, 2011. "Agricultural Land Elasticities in the United States and Brazil," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 449-462.
    6. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
    7. Kouwenberg, Roy & Markiewicz, Agnieszka & Verhoeks, Ralph & Zwinkels, Remco C. J., 2017. "Model Uncertainty and Exchange RateƂ Forecasting," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 52(1), pages 341-363, February.
    8. JunJie Wu & Richard M. Adams & Catherine L. Kling & Katsuya Tanaka, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 26-41.
    9. Hendricks, Nathan P. & Sinnathamby, Sumathy & Douglas-Mankin, Kyle & Smith, Aaron & Sumner, Daniel A. & Earnhart, Dietrich H., 2014. "The environmental effects of crop price increases: Nitrogen losses in the U.S. Corn Belt," Journal of Environmental Economics and Management, Elsevier, vol. 68(3), pages 507-526.
    10. Ruben N. Lubowski & Andrew J. Plantinga & Robert N. Stavins, 2008. "What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions," Land Economics, University of Wisconsin Press, vol. 84(4), pages 529-550.
    11. Gordon C. Rausser, 1992. "Predatory versus Productive Government: The Case of U.S. Agricultural Policies," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 133-157, Summer.
    12. Lubowski, Ruben N. & Bucholtz, Shawn & Claassen, Roger & Roberts, Michael J. & Cooper, Joseph C. & Gueorguieva, Anna & Johansson, Robert C., 2006. "Environmental Effects Of Agricultural Land-Use Change: The Role Of Economics And Policy," Economic Research Report 33591, United States Department of Agriculture, Economic Research Service.
    13. Millicent Chang & Xiaolin Qian & Jing Yu & Yvonne See, 2017. "Does director trading change the information environment?," Australian Journal of Management, Australian School of Business, vol. 42(2), pages 205-229, May.
    14. Michael J. Roberts & Ruben N. Lubowski, 2007. "Enduring Impacts of Land Retirement Policies: Evidence from the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 83(4), pages 516-538.
    15. Jean-Marc Bourgeon & Robert G. Chambers, 2000. "Stop-and-Go Agricultural Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 1-13.
    16. 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 Economics Reports 33987, United States Department of Agriculture, Economic Research Service.
    17. Wright, Brian D & Williams, Jeffrey C, 1988. "The Incidence of Market-Stabilising Price Support Schemes," Economic Journal, Royal Economic Society, vol. 98(393), pages 1183-1198, December.
    18. Coppess, Jonathan, 2017. "CBO Baseline and the Potential for Conflicts by Expanding CRP," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), December.
    19. Michael K. Adjemian & Aaron Smith, 2012. "Using USDA Forecasts to Estimate the Price Flexibility of Demand for Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 978-995.
    20. Barr, Kanlaya Jintanakul, 2011. "Agricultural Land Elasticities in the United States and Brazil," Staff General Research Papers Archive 34893, Iowa State University, Department of Economics.
    21. Robert G. Chambers, 1992. "On the Design of Agricultural Policy Mechanisms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 646-654.
    22. Andrew J. Plantinga, 2015. "Integrating Economic Land-Use and Biophysical Models," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 233-249, October.
    23. Michael J. Roberts & Wolfram Schlenker, 2013. "Identifying Supply and Demand Elasticities of Agricultural Commodities: Implications for the US Ethanol Mandate," American Economic Review, American Economic Association, vol. 103(6), pages 2265-2295, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raja Chakir & Alban Thomas, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," Working Papers hal-02482207, HAL.
    2. Cornish, Brian & Miao, Ruiqing & Khanna, Madhu, 2020. "How will changes in Title II of the 2018 Farm Bill affect CRP Acreage?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304304, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:75:y:2018:i:c:p:15-23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.