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Distinguishing between Whole-Farm vs. Partial-Farm Participation in the Conservation Reserve Program

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  • Hung-Hao Chang
  • Richard N. Boisvert

Abstract

By distinguishing between the decision to participate in the conservation reserve program (CRP) and the decision for whole-farm vs. part-farm participation, we model participation as separate binary decisions. Our results suggest the farm characteristics and other factors affect the decision to participate in CRP differently than the decision regarding whole-farm vs. part-farm participation. This model formulation also helps to clarify the conditions under which the effect of CRP payments on the acreage enrolled in the program is positive or negative.

Suggested Citation

  • Hung-Hao Chang & Richard N. Boisvert, 2009. "Distinguishing between Whole-Farm vs. Partial-Farm Participation in the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 85(1), pages 144-161.
  • Handle: RePEc:uwp:landec:v:85:y:2009:i:1:p:144-161
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    References listed on IDEAS

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    1. 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.
    2. Parks, Peter J. & Schorr, James P., 1997. "Sustaining Open Space Benefits in the Northeast: An Evaluation of the Conservation Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 85-94, January.
    3. Kalaitzandonakes, Nicholas G. & Monson, Michael J., 1994. "An Analysis Of Potential Conservation Effort Of Crp Participants In The State Of Missouri: A Latent Variable Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(01), July.
    4. Vella, Francis, 1993. "A Simple Estimator for Simultaneous Models with Censored Endogenous Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(2), pages 441-457, May.
    5. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    6. Allen M. Featherstone & Barry K. Goodwin, 1993. "Factors Influencing a Farmer's Decision to Invest in Long-Term Conservation Improvements," Land Economics, University of Wisconsin Press, vol. 69(1), pages 67-81.
    7. 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.
    8. Fleming, Ronald A., 2004. "An Econometric Analysis of the Environmental Benefits Provided by the Conservation Reserve Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(02), August.
    9. Rude, James & Meilke, Karl D., 2004. "Developing Policy Relevant Agrifood Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(02), August.
    10. Barry K. Goodwin & Ashok K. Mishra, 2006. "Are “Decoupled” Farm Program Payments Really Decoupled? An Empirical Evaluation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 73-89.
    11. Isik, Murat & Yang, Wanhong, 2004. "An Analysis of the Effects of Uncertainty and Irreversibility on Farmer Participation in the Conservation Reserve Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
    12. Kalaitzandonakes, N.G. & Monson, M., 1994. "An Analysis of Potential Conservation Effort of CRP Participants in the State of Missouri: A Latent Variable Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, pages 200-208.
    13. McLean-Meyinsse, Patricia E. & Hui, Jianguo & Joseph, Randolph, Jr., 1994. "An Empirical Analysis Of Louisiana Small Farmers' Involvement In The Conservation Reserve Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
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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. Kelly, Peter & Huo, Xuexi, 2013. "Do farmers or governments make better land conservation choices? Evidence from China's Sloping Land Conversion Program," Journal of Forest Economics, Elsevier, pages 32-60.
    3. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2015. "Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus," Discussion Papers in Environment and Development Economics 2015-06, University of St. Andrews, School of Geography and Sustainable Development.
    4. Chang, Hung-Hao & Chen, Yu-Hui, 2011. "Are participators in the land retirement program likely to grow energy crops?," Applied Energy, Elsevier, pages 3183-3188.
    5. Ueda, Kohei & Hand, Michael S. & Farrigan, Tracey L., 2010. "Farmers in Low Socioeconomic Status Counties Enroll Less Land, Receive Less CRP Funding Per Acre," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60980, Agricultural and Applied Economics Association.
    6. Chang, Hung-Hao & Boisvert, Richard N., 2009. "The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies," Working Papers 57034, Cornell University, Department of Applied Economics and Management.
    7. 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
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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