IDEAS home Printed from https://ideas.repec.org/p/ags/uerser/33987.html
   My bibliography  Save this paper

The Conservation Reserve Program: Economic Implications for Rural America

Author

Listed:
  • 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, Stephen J.
  • Bucholtz, Shawn

Abstract

This report estimates the impact that high levels of enrollment in the Conservation Reserve Program (CRP) have had on economic trends in rural counties since the program's inception in 1985 until today. The results of a growth model and quasi-experimental control group analysis indicate no discernible impact by the CRP on aggregate county population trends. Aggregate employment growth may have slowed in some high-CRP counties, but only temporarily. High levels of CRP enrollment appear to have affected farm-related businesses over the long run, but growth in the number of other nonfarm businesses moderated CRP's impact on total employment. If CRP contracts had ended in 2001, simulation models suggest that roughly 51 percent of CRP land would have returned to crop production, and that spending on outdoor recreation would decrease by as much as $300 million per year in rural areas. The resulting impacts on employment and income vary widely among regions having similar CRP enrollments, depending upon local economic conditions.

Suggested Citation

  • 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 Economic Reports 33987, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:33987
    DOI: 10.22004/ag.econ.33987
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/33987/files/ae040834.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.33987?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. House, Robert & Peters, Mark & Baumes, Harry & Disney, W. Terry, 1993. "Ethanol and Agriculture: Effect of Increased Production on Crop and Livestock Sectors," Agricultural Economic Reports 262028, United States Department of Agriculture, Economic Research Service.
    2. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(2), pages 1-5, August.
    3. 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.
    4. David J. Lewis & Gary L. Hunt & DAndrew J. Plantinga, 2002. "Public Conservation Land and Employment Growth in the Northern Forest Region," Land Economics, University of Wisconsin Press, vol. 78(2), pages 245-259.
    5. Graham Pyatt, 2001. "Some Early Multiplier Models of the Relationship between Income Distribution and Production Structure," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 139-163.
    6. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    7. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economic Reports 33955, United States Department of Agriculture, Economic Research Service.
    8. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
    9. Stephan J. Goetz & David L. Debertin, 1996. "Rural Population Decline in the 1980s: Impacts of Farm Structure and Federal Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 517-529.
    10. Johnson, Phillip N. & Misra, Sukant K. & Ervin, R. Terry, 1997. "A Qualitative Choice Analysis of Factors Influencing Post-CRP Land Use Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(1), pages 163-173, July.
    11. Hamilton, Lynn L. & Levins, Richard A., 1998. "Local Economic Impacts Of Conservation Reserve Program Enrollments: A Sub-County Analysis," Conference Papers 14486, University of Minnesota, Center for International Food and Agricultural Policy.
    12. Hodur, Nancy M. & Leistritz, F. Larry & Bangsund, Dean A., 2002. "Local Socioeconomic Impacts Of The Conservation Reserve Program," Agribusiness & Applied Economics Report 23551, North Dakota State University, Department of Agribusiness and Applied Economics.
    13. Reed, W. Robert & Rogers, Cynthia L., 2003. "A study of quasi-experimental control group methods for estimating policy impacts," Regional Science and Urban Economics, Elsevier, vol. 33(1), pages 3-25, January.
    14. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economic Reports 33983, United States Department of Agriculture, Economic Research Service.
    15. Bengt T. Hyberg & Michael R. Dicks & Thomas Hebert, 1991. "Economic Impacts Of The Conservation Reserve Program On Rural Economies," The Review of Regional Studies, Southern Regional Science Association, vol. 21(1), pages 91-105, Spring.
    16. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
    17. H. Fred Gale, 1993. "Why Did the Number of Young Farm Entrants Decline?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 138-146.
    18. Bucholtz, Shawn & Roberts, Michael J., 2002. "Slippage Or Spurious Correlation: An Analysis Of The Conservation Reserve Program," 2002 Annual meeting, July 28-31, Long Beach, CA 19714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    20. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economic Reports 34027, United States Department of Agriculture, Economic Research Service.
    21. Bangsund, Dean A. & Leistritz, F. Larry & Hodur, Nancy M., 2002. "Rural Economic Effects Of The Conservation Reserve Program In North Dakota," Agribusiness & Applied Economics Report 23564, North Dakota State University, Department of Agribusiness and Applied Economics.
    22. Martin, Michael V. & Radtke, Hans & Eleveld, Bart & Nofziger, S. Dianne, 1988. "The Impacts Of The Conservation Reserve Program On Rural Communities: The Case Of Three Oregon Counties," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-8, December.
    23. Konyar, Kazim & Osborn, C. Tim, 1990. "A National-Level Economic Analysis of Conservation Reserve Program Participation: A Discrete Choice Approach," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(2), pages 1-8.
    24. Stephan J. Goetz & Anil Rupasingha, 2002. "High-Tech Firm Clustering: Implications for Rural Areas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1229-1236.
    25. Hoppe, Robert A. & Perry, Janet E. & Banker, David E., 2000. "ERS Farm Typology for a Diverse Agricultural Sector," Agricultural Information Bulletins 33657, United States Department of Agriculture, Economic Research Service.
    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. Campiche, Jody L. & Dicks, Michael R. & Shideler, David W. & Dickson, Amanda, 2011. "Potential Economic Impacts of the Managed Haying and Grazing Provision of the Conservation Reserve Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-17.
    2. McGranahan, David A. & Sullivan, Patrick & Hallahan, Charles B., 2003. "The Impact of Conservation Reserve Program Enrollment on Local Job Growth," 2003 Regional Committee NCT-194, October 6-7, 2003; Kansas City, Missouri 132521, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    3. 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).
    4. 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).
    5. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    6. Lee, Meongsu, 2018. "Impacts of Net Returns Per Acre on Land Use after Conservation Reserve Program Contract Expiration," 2018 Annual Meeting, August 5-7, Washington, D.C. 273877, Agricultural and Applied Economics Association.
    7. Isik, Murat, 2005. "A Theoretical and Empirical Analysis of Conservation Reserve Program Participation under Uncertainty," 2005 Annual meeting, July 24-27, Providence, RI 19264, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Ribaudo, Marc O. & Heimlich, Ralph & Peters, Mark, 2005. "Nitrogen sources and Gulf hypoxia: potential for environmental credit trading," Ecological Economics, Elsevier, vol. 52(2), pages 159-168, January.
    9. Cooper, Joseph C. & Peters, Mark & Claassen, Roger, 2003. "Effects Of Agri-Environmental Payment Policies On Agricultural Trade," 2003 Annual meeting, July 27-30, Montreal, Canada 22240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Michael J. Roberts & Ruben N. Lubowski, 2007. "Enduring Impacts of Land Retirement Policies: Evidence from the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 83(4), pages 516-538.
    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(2), pages 1-18, August.
    12. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economic Reports 33983, United States Department of Agriculture, Economic Research Service.
    13. Claassen, Roger & Breneman, Vincent E. & Bucholtz, Shawn & Cattaneo, Andrea & Johansson, Robert C. & Morehart, Mitchell J., 2004. "Environmental Compliance In U.S. Agricultural Policy: Past Performance And Future Potential," Agricultural Economic Reports 34033, United States Department of Agriculture, Economic Research Service.
    14. repec:rri:wpaper:201004 is not listed on IDEAS
    15. Junbo Yu & Peter Nijkamp, 2010. "Methodological Challenges and Institutional Barriers in the Use of Experimental Method for the Evaluation of Business Incubators: Lessons from the US, EU, and China," Working Papers Working Paper 2010-04, Regional Research Institute, West Virginia University.
    16. Boisvert, Richard N. & Chang, Hung-Hao, 2005. "Explaining Participation in the Conservation Reserve Program and its Effects on Farm Productivity and Efficiency," 2005 Annual meeting, July 24-27, Providence, RI 19321, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. 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.
    18. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    19. Haiyang Lu & Peng Nie & Alfonso Sousa-Poza, 2021. "The Effect of Parental Educational Expectations on Adolescent Subjective Well-Being and the Moderating Role of Perceived Academic Pressure: Longitudinal Evidence for China," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(1), pages 117-137, February.
    20. Alessandra Catozzella & Marco Vivarelli, 2016. "The possible adverse impact of innovation subsidies: some evidence from Italy," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 351-368, June.
    21. Arnold, Jens Matthias & Javorcik, Beata Smarzynska, 2005. "Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia," Policy Research Working Paper Series 3597, The World Bank.

    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:ags:uerser:33987. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    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.