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An Accounting Tradeoff Between WRP and Government Payments


  • Ibendahl, Gregory A.


The Wetlands Reserve Program (WRP) can provide farmers financial compensation in exchange for retiring marginal lands from standard agricultural practices. Often overlooked in the analysis is the cost to the government to implement these programs. This paper examines two issues: first do farmers benefit from WRP enrollment and second does the government say money with WRP enrollment. With WRP the government no longer has to pay yearly direct, counter-cyclical, LDP, or crop insurance payments. Results from three Mississippi counties show that for certain crops that have historically paid a lot in government payments, WRP can be cheaper for the government. For farmers, the decision likely depends upon other revenue sources that can take the place of lost crop production.

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  • Ibendahl, Gregory A., 2008. "An Accounting Tradeoff Between WRP and Government Payments," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6764, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeaed:6764

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    1. Leibtag, Ephraim S. & Nakamura, Alice & Nakamura, Emi & Zerom, Dawit, 2007. "Cost Pass-Through In The U.S. Coffee Industry," Economic Research Report 7253, United States Department of Agriculture, Economic Research Service.
    2. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    3. Wickens, M R & Greenfield, J N, 1973. "The Econometrics of Agricultural Supply: An Application to the World Coffee Market," The Review of Economics and Statistics, MIT Press, vol. 55(4), pages 433-440, November.
    4. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
    5. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(01), pages 175-184, July.
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    Cited by:

    1. Jenkins, W. Aaron & Murray, Brian C. & Kramer, Randall A. & Faulkner, Stephen P., 2010. "Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley," Ecological Economics, Elsevier, vol. 69(5), pages 1051-1061, March.

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    Land Economics/Use; Public Economics;

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