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

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

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.

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File URL: http://le.uwpress.org/cgi/reprint/84/1/17
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 84 (2008)
Issue (Month): 1 ()
Pages: 17-30

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Handle: RePEc:uwp:landec:v:84:y:2008:i:1:p:17-30
Contact details of provider: Web page: http://le.uwpress.org/

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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. 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.
  3. 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.
  4. 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.
  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. 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.
  7. 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.
  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. 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.
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