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Is Geographical Targeting Cost-Effective? The Case of the Conservation Reserve Enhancement Program in Illinois

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  • Wanhong Yang
  • Madhu Khanna
  • Richard Farnsworth
  • Hayri Önal

Abstract

This paper uses economic, hydrologic, and GIS modeling to assess the effectiveness of the Illinois Conservation Reserve Enhancement Program in the Lower Sangamon watershed. Our results show that for a representative five-year storm event, the acres currently enrolled in the program result in a 12% reduction in sediment loading, which is below the program goal of 20% and four times the least-cost solution. We also analyze the design of alternative rental payment instruments for improving the cost-effectiveness of geographical targeting for land retirement. Policy implications for the characteristics of the land parcels that should be targeted for enrollment in the program are discussed.

Suggested Citation

  • Wanhong Yang & Madhu Khanna & Richard Farnsworth & Hayri Önal, 2005. "Is Geographical Targeting Cost-Effective? The Case of the Conservation Reserve Enhancement Program in Illinois," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 70-88.
    • Handle: RePEc:oup:revage:v:27:y:2005:i:1:p:70-88.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2004.00208.x
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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. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economic Reports 34027, United States Department of Agriculture, Economic Research Service.
    3. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economic Reports 33983, United States Department of Agriculture, Economic Research Service.
    4. Robbin Shoemaker, 1989. "Agricultural Land Values and Rents under the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 65(2), pages 131-137.
    5. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1996. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers Archive 1065, Iowa State University, Department of Economics.
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    Cited by:

    1. Kathleen P. Bell & Timothy J. Dalton, 2007. "Spatial Economic Analysis in Data‐Rich Environments," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 487-501, September.
    2. Jussi Lankoski & Erik Lichtenberg & Markku Ollikainen, 2010. "Agri-Environmental Program Compliance in a Heterogeneous Landscape," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 1-22, September.
    3. Isik, Murat, 2005. "The Role of Land Retirement Programs for Management of Water Resources," 2005 Annual meeting, July 24-27, Providence, RI 19542, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Takumi Sakuyama, 2006. "Direct Payments for Environmental Services from Mountain Agriculture in Japan: Evaluating its Effectiveness and Drawing Lessons for Developing Countries," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(1), pages 27-57.
    5. Boxall, Peter C. & Weber, Marian & Perger, Orsolya & Cutlac, Marius & Samarawickrema, Antony, 2008. "Results from the Farm Behaviour Component of the Integrated Economic-Hydrologic Model for the Watershed Evaluation of Beneficial Management Practices Program," Project Report Series 116268, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. Yang, Wanhong & Bryan, Brett A. & MacDonald, Darla Hatton & Ward, John R. & Wells, Geoff & Crossman, Neville D. & Connor, Jeffrey D., 2010. "A conservation industry for sustaining natural capital and ecosystem services in agricultural landscapes," Ecological Economics, Elsevier, vol. 69(4), pages 680-689, February.

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