IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v44y2022i2p1100-1122.html
   My bibliography  Save this article

Impact of changes in Title II of the 2018 Farm Bill on the acreage and environmental benefits of Conservation Reserve Program

Author

Listed:
  • Brian Cornish
  • Ruiqing Miao
  • Madhu Khanna

Abstract

The 2018 Farm Bill lowered the maximum rental payments for the Conservation Reserve Program (CRP) by 10%–15% and increased the acreage enrollment cap by 3 million acres. We show that CRP acreage will decrease by 1.18 million acres (associated with a 3.3% environmental benefit decrease of the CRP) as a result of the rental rate reduction and that CRP acreage will increase by 2.32 million acres (associated with a 6.2% environmental benefit increase of the CRP) because of the acreage cap increase. The largest impact on CRP acreage and environmental benefits is predicted to occur in the Plains and the South.

Suggested Citation

  • Brian Cornish & Ruiqing Miao & Madhu Khanna, 2022. "Impact of changes in Title II of the 2018 Farm Bill on the acreage and environmental benefits of Conservation Reserve Program," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1100-1122, June.
  • Handle: RePEc:wly:apecpp:v:44:y:2022:i:2:p:1100-1122
    DOI: 10.1002/aepp.13185
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13185
    Download Restriction: no

    File URL: https://libkey.io/10.1002/aepp.13185?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Keri L. Jacobs & Walter N. Thurman & Michele C. Marra, 2014. "The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 90(1), pages 1-25.
    2. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    3. JunJie Wu, 2000. "Slippage Effects of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 979-992.
    4. Joseph C. Cooper & C. Tim Osborn, 1998. "The Effect of Rental Rates on the Extension of Conservation Reserve Program Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 184-194.
    5. Ruiqing Miao & Madhu Khanna & Haixiao Huang, 2016. "Responsiveness of Crop Yield and Acreage to Prices and Climate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 191-211.
    6. Wu, JunJie & Boggess, William G., 1999. "The Optimal Allocation of Conservation Funds," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 302-321, November.
    7. Heesun Jang & Xiaodong Du, 2018. "An Empirical Structural Model of Productivity and Conservation Reserve Program Participation," Land Economics, University of Wisconsin Press, vol. 94(1), pages 1-18.
    8. 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.
    9. Hendricks, Nathan P. & Er, Emrah, 2018. "Changes in cropland area in the United States and the role of CRP," Food Policy, Elsevier, vol. 75(C), pages 15-23.
    10. Michael J. Roberts & Wolfram Schlenker, 2013. "Identifying Supply and Demand Elasticities of Agricultural Commodities: Implications for the US Ethanol Mandate," American Economic Review, American Economic Association, vol. 103(6), pages 2265-2295, October.
    11. Hellerstein, Daniel & Malcolm, Scott, 2011. "The Influence of Rising Commodity Prices on the Conservation Reserve Program," Economic Research Report 262244, United States Department of Agriculture, Economic Research Service.
    12. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
    13. Jennifer Ifft & Deepak Rajagopal & Ryan Weldzuis, 2019. "Ethanol Plant Location and Land Use: A Case Study of CRP and the Ethanol Mandate," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(1), pages 37-55, March.
    14. Yijia Li & Ruiqing Miao & Madhu Khanna, 2019. "Effects of Ethanol Plant Proximity and Crop Prices on Land-Use Change in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 467-491.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cornish, Brian & Miao, Ruiqing & Khanna, Madhu, 2020. "How will changes in Title II of the 2018 Farm Bill affect CRP Acreage?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304304, Agricultural and Applied Economics Association.
    2. Assogba, Noel Perceval & Zhang, Daowei, 2022. "The conservation reserve program and timber prices in the southern United States," Forest Policy and Economics, Elsevier, vol. 140(C).
    3. Whitten, Stuart M., 2017. "Designing and implementing conservation tender metrics: Twelve core considerations," Land Use Policy, Elsevier, vol. 63(C), pages 561-571.
    4. Ruiqing Miao & Hongli Feng & David A. Hennessy & Xiaodong Du, 2014. "Assessing Cost-Effectiveness of the Conservation Reserve Program and its Interaction with Crop Insurance Subsidies," Center for Agricultural and Rural Development (CARD) Publications 14-wp553, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Wu, JunJie & Weber, Bruce, 2012. "Implications of a Reduced Conservation Reserve Program," C-FARE Reports 156625, Council on Food, Agricultural, and Resource Economics (C-FARE).
    6. Mykel R. Taylor & Nathan P. Hendricks & Gabriel S. Sampson & Dillon Garr, 2021. "The Opportunity Cost of the Conservation Reserve Program: A Kansas Land Example," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 849-865, June.
    7. Nathan P. Hendricks, 2022. "Would farmers benefit from removing more land from production in the next farm bill?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1139-1157, September.
    8. Thilo W. Glebe, 2022. "The influence of contract length on the performance of sequential conservation auctions," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 739-764, March.
    9. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
    10. Zilberman, David & Segerson, Kathleen, 2012. "Top Ten Design Elements to Achieve More Efficient Conservation Programs," C-FARE Reports 156623, Council on Food, Agricultural, and Resource Economics (C-FARE).
    11. Hongli Feng & Catherine L. Kling & Lyubov A. Kurkalova & Silvia Secchi & Philip W. Gassman, 2005. "The Conservation Reserve Program in the Presence of a Working Land Alternative: Implications for Environmental Quality, Program Participation, and Income Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1231-1238.
    12. Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics, Blackwell, vol. 27(2), pages 157-174, August.
    13. Jean-Sauveur Ay, 2015. "Information sur l’hétérogénéité de la terre et délégation de la régulation foncière," Revue d'économie politique, Dalloz, vol. 125(3), pages 453-474.
    14. Newburn, David A. & Berck, Peter & Merenlender, Adina, 2004. "Spatial Targeting Strategies For Land Conservation," 2004 Annual meeting, August 1-4, Denver, CO 20206, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Wallander, Steven & Hellerstein, Daniel M. & Johnsen, Reid, 2018. "Cost Effectiveness of Conservation Auctions Revisited: The Benefits of Information Rents," 2018 Annual Meeting, August 5-7, Washington, D.C. 274457, Agricultural and Applied Economics Association.
    16. Eigenraam, Mark & Strappazzon, Loris & Lansdell, Nicola & Beverly, Craig & Stoneham, Gary, 2006. "Designing Frameworks to Deliver Unknown Information to Support MBIs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25673, International Association of Agricultural Economists.
    17. Yao, Ling & Chen, Qihui & Wu, Laping, 2018. "Heterogeneous supply response: Does high price expectation attenuate the inverse farm size-productivity relationship in China?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274363, Agricultural and Applied Economics Association.
    18. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    19. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
    20. Kathleen Segerson, 2013. "Voluntary Approaches to Environmental Protection and Resource Management," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 161-180, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apecpp:v:44:y:2022:i:2:p:1100-1122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.