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Evaluating the Effectiveness of Maryland’s Cover Crop Program

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  • Lu, Hanjun
  • Rejesus, Roderick M.
  • Hively, Dean
  • Thieme, Alison
  • Jennewein, Jyoti

Abstract

Maryland’s Cover Crop Program, administered by the Department of Agriculture (MDA), aims to enhance soil health and protect the Chesapeake Bay by encouraging farmer adoption of cover crops. This manuscript evaluates the effectiveness of its various financial incentive payments in increasing cover crop biomass. We analyzed MDA field-level payment data and remotely-sensed biomass estimates from 2017 to 2022. We used several statistical methods, including a Two-Way Fixed Effects model, an instrumental variable method, and advanced difference-in-differences models for cases with no stayers and continuous treatments. The results show that the program’s total payments do increase biomass. Payments for planting early have the strongest positive effect. Payments for terminating late also help increase biomass. Payments for specific crop species, for aerial seeding into corn, and for late planting had little to no positive effect, and sometimes had a negative effect. These results are consistent across the different methods we used. Our findings suggest that while the MDA program is working overall, it could be improved by focusing more on the most effective payments.

Suggested Citation

  • Lu, Hanjun & Rejesus, Roderick M. & Hively, Dean & Thieme, Alison & Jennewein, Jyoti, 2025. "Evaluating the Effectiveness of Maryland’s Cover Crop Program," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361072, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:361072
    DOI: 10.22004/ag.econ.361072
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    File URL: https://ageconsearch.umn.edu/record/361072/files/75295_94116_105300_Maryland_CC_AAEA_Draft.pdf
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    References listed on IDEAS

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    3. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    4. Fleming, Patrick & Lichtenberg, Erik & Newburn, David A., 2018. "Evaluating impacts of agricultural cost sharing on water quality: Additionality, crowding In, and slippage," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 1-19.
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