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Do Landowners Respond to Land Retirement Incentives? Evidence from the Conservation Reserve Enhancement Program

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  • Jordan F. Suter
  • Gregory L. Poe
  • Nelson L. Bills

Abstract

Previous research on incentive responsivness in voluntary land retirement programs has utilized either hypothetical contingent response methods or actual aggregate enrollment data, both of which suffer from potential biases. In this paper, we analyze program participation in the binary-choice setting of the Conservation Reserve Enhancement Program (CREP) using data from six states. Our results suggest that landowners react positively to the incentives that are offered and that increases in onetime incentives, offered at the time of signup, are a more cost-effective means to increase enrollment than increases in the incentives offered on an annual basis.

Suggested Citation

  • 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.
  • Handle: RePEc:uwp:landec:v:84:y:2008:i:1:p:17-30
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    References listed on IDEAS

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    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. Lynch, Lori & Brown, Cheryl, 2000. "Landowner Decision Making About Riparian Buffers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
    4. Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application Of Tobit Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
    5. Cason, Timothy N. & Gangadharan, Lata & Duke, Charlotte, 2003. "A laboratory study of auctions for reducing non-point source pollution," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 446-471, November.
    6. Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application of Tobit Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(01), pages 79-90, July.
    7. Poe, Gregory L., 1998. "Propery Tax Distortions And Participation In Federal Easement Programs: An Exploratory Analysis Of The Wetlands Reserve Program," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), April.
    8. 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.
    9. Parks P. J. & Kramer R. A., 1995. "A Policy Simulation of the Wetlands Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 223-240, March.
    10. Namatié Traoré & Réjean Landry & Nabil Amara, 1998. "On-Farm Adoption of Conservation Practices: The Role of Farm and Farmer Characteristics, Perceptions, and Health Hazards," Land Economics, University of Wisconsin Press, vol. 74(1), pages 114-127.
    11. Timothy N. Cason & Lata Gangadharan, 2004. "Auction Design for Voluntary Conservation Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1211-1217.
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    Citations

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    Cited by:

    1. Wu, Feng & Guan, Zhengfei & Yu, Fan & Myers, Robert J., 2013. "The spillover effects of biofuel policy on participation in the conservation reserve program," Journal of Economic Dynamics and Control, Elsevier, vol. 37(9), pages 1755-1770.
    2. Jordan F. Suter & Kathleen Segerson & Christian A. Vossler & Gregory L. Poe, 2010. "Voluntary-Threat Approaches to Reduce Ambient Water Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1195-1213.
    3. Wachenheim, Cheryl J. & Lesch, William C. & Dhingra, Neeraj, 2014. "The Conservation Reserve Program: A Literature Review," Agribusiness & Applied Economics Report 164829, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
    5. Monger, Randall & Suter, Jordan & Manning, Dale T. & Schneekloth, Joel, 2016. "Explaining Participation in the Colorado Republican River and Nebraska Platte-Republican Resources Area Conservation Reserve Enhancement Programs," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236061, Agricultural and Applied Economics Association.
    6. repec:gam:jsusta:v:9:y:2017:i:10:p:1859-:d:115373 is not listed on IDEAS
    7. Conte, Marc N. & Jacobsen, Grant D., 2016. "Explaining Demand for Green Electricity Using Data from All U.S. Utilities," Energy Economics, Elsevier, vol. 60(C), pages 122-130.
    8. Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
    9. Buckley, Cathal & Hynes, Stephen & Mechan, Sarah, 2012. "Operating or not Operating at the Margin: Farmers Willingness to Adopt a Riparian Buffer Zone," Working Papers 148830, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
    10. repec:oup:apecpp:v:39:y:2017:i:3:p:441-457. is not listed on IDEAS

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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