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Field-Level Measurement of Land Productivity and Program Slippage

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  • Dana L. Hoag
  • William E. Foster
  • Bruce A. Babcock

Abstract

We measure the significance of heterogeneous land quality in determining the efficacy of commodity program acreage reduction requirements in reducing farm output. Field-level analysis isolates the influence of land productivity from other factors to gauge the importance of the land decisions on slippage. Results from six North Carolina counties for 1985–88 show that yield increases from the diversion of low-quality land by individual farmers contribute relatively little to aggregate increases in average yield. The results are consistent with other studies finding that slippage is a result of interregional effects rather than of intraregional or intrafarm effects.

Suggested Citation

  • Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:1:p:181-189.
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    1. Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect: A Case Study Approach To Predict The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," Department of Agricultural and Rural Development (DARE) Discussion Papers 187445, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Kim, Man-Keun & Peralta, Denis & McCarl, Bruce A., 2014. "Land-based greenhouse gas emission offset and leakage discounting," Ecological Economics, Elsevier, vol. 105(C), pages 265-273.
    3. Hild Rygnestad & Rob Fraser, 1996. "Land Heterogeneity And The Effectiveness Of Cap Set‐Aside," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 255-260, January.
    4. Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect: A Case Study Approach To Predict The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187445, German Association of Agricultural Economists (GEWISOLA).
    5. FRASER Iain & WASCHIK Robert, 2010. "Agricultural Land Retirement for Biodiversity: The Australian Wool Industry," EcoMod2003 330700055, EcoMod.
    6. 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.
    7. Heng-Chi Lee & Bruce McCarl & Uwe Schneider & Chi-Chung Chen, 2007. "Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(4), pages 471-494, May.
    8. Heinrich, Barbara, 2012. "Calculating the 'greening' effect: A case study approach to predict the gross margin losses in different farm types in Germany due to the reform of the CAP," DARE Discussion Papers 1205, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    9. David A. Fleming, 2014. "Slippage effects of land-based policies: Evaluating the Conservation Reserve Program using satellite imagery," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 167-178, November.
    10. Rygnestad, Hild L. & Fraser, Rob W., 1995. "An analysis of the effectiveness of the set-aside policy of the European Common Agricultural Policy," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148804, Australian Agricultural and Resource Economics Society.
    11. Bucholtz, Shawn & Roberts, Michael J., 2002. "Slippage Or Spurious Correlation: An Analysis Of The Conservation Reserve Program," 2002 Annual meeting, July 28-31, Long Beach, CA 19714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Taheripour, Farzad, 2006. "Economic Impacts of the Conservation Reserve Program: A General Equilibrium Framework," 2006 Annual meeting, July 23-26, Long Beach, CA 21346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 253-265, July.
    14. Ekaterina Vorotnikova & Serhat Asci & James L. Seale, 2018. "Joint production, land allocation, and the effects of the production flexibility program," Empirical Economics, Springer, vol. 55(3), pages 1121-1143, November.

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