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Environmental Conservation in Agriculture: Land Retirement versus Changing Practices on Working Land

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Abstract

The study develops a conceptual framework for analyzing the allocation of conservation funds via selectively offering incentive payments to farmers for enrolling in one of two mutually exclusive agricultural conservation programs: retiring land from production or changing farming practices on land that remains in production. We investigate how the existence of a pre-fixed budget allocation between the programs affects the amounts of environmental benefits obtainable under alternative policy implementation schemes. The framework is applied to a major agricultural production region using field-scale data in conjunction with empirical models of land retirement and conservation tillage adoption, and a biophysical process simulation model for the environmental benefits of carbon sequestration and reduction in soil erosion.

Suggested Citation

  • Hongli Feng & Lyubov A. Kurkalova & Catherine L. Kling & Philip W. Gassman, 2004. "Environmental Conservation in Agriculture: Land Retirement versus Changing Practices on Working Land," Center for Agricultural and Rural Development (CARD) Publications 04-wp365, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:04-wp365
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    1. 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.
    2. Hongli Feng & Catherine L. Kling, 2005. "The Consequences of Cobenefits for the Efficient Design of Carbon Sequestration Programs," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 461-476, December.
    3. Feng, Hongli & Kling, Catherine L. & Gassman, Philip W., 2004. "Carbon Sequestration, Co-Benefits, and Conservation Programs," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 19(3), pages 1-6.
    4. Secchi, Silvia & Feng, Hongli & Kurkalova, Lyubov A. & Kling, Catherine L. & Gassman, Philip W. & Jha, Manoj, 2005. "Nonpoint Source Needs Assessment for Iowa Part II: the Cost of Improving Iowa’s Water Quality," ISU General Staff Papers 200501010800001068, Iowa State University, Department of Economics.
    5. Sergey S. Rabotyagov, 2010. "Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration," Land Economics, University of Wisconsin Press, vol. 86(4), pages 668-686.
    6. Feng, Hongli, 2005. "The dynamics of carbon sequestration and alternative carbon accounting, with an application to the upper Mississippi River Basin," Ecological Economics, Elsevier, vol. 54(1), pages 23-35, July.
    7. Williams, Jeffery R. & Pendell, Dustin L. & Sweeney, Daniel & Rice, Charles W. & Nelson, Richard G., 2006. "A Risk Analysis of Carbon Sequestration in Claypan Soil with Conservation Tillage Systems and Nitrogen Fertilizers for Grain Sorghum and Soybean," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35327, Southern Agricultural Economics Association.
    8. Feng, Hongli & Kling, Catherine L., 2005. "Carbon Sequestration in Agriculture: an Offset Program versus Other Conservation Programs," 2005 Annual meeting, July 24-27, Providence, RI 19177, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Cattaneo, Andrea, 2005. "Prescriptive use of Environmental Indices: A "How To" Guide for Conservation Programs," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24764, European Association of Agricultural Economists.
    10. Pendell, Dustin & Williams, Jeffery & Sweeney, Daniel & Nelson, Richard & Rice, Charles, 2006. "Economic Feasibility of Carbon Sequestration with Alternative Tillage Systems," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-10.

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