IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/201401010800001041.html

The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program

Author

Listed:
  • Jacobs, Keri L.
  • Thurman, Walter N.
  • Marra, Michelle C.

Abstract

We explore how a landowner’s bid to enroll in the Conservation Reserve Program (CRP) is influenced by his parcel’s designation as a Conservation Priority Area (CPA). A theoretical model of a landowner’s optimal bid is presented, and we demonstrate the ambiguity in a landowner’s optimal bid response to CPA designations. The bid choice is analyzed using a data set of accepted and unaccepted offers during three CRP sign-up periods. We focus empirically on a subset of offers from the Prairie Pothole CPA to identify whether bid responses to exogenous location factors differ across landowners with varying opportunity costs to enrollment. (JEL Q15, Q18)

Suggested Citation

  • Jacobs, Keri L. & Thurman, Walter N. & Marra, Michelle C., 2014. "The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program," ISU General Staff Papers 201401010800001041, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201401010800001041
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/6400abf8-1e9b-4557-ab66-ab28f67d0613/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nguyen, Chi & Latacz-Lohmann, Uwe & Hanley, Nick & Iftekhar, Sayed, 2025. "Conservation auctions for landscape-scale environmental management: Does spatial configuration matter for economic and ecological outcomes?," Ecological Economics, Elsevier, vol. 230(C).
    2. Wallander, Steven & Hellerstein, Daniel M. & Johnsen, Reid, "undated". "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.
    3. Hellerstein, Daniel M., 2017. "The US Conservation Reserve Program: The evolution of an enrollment mechanism," Land Use Policy, Elsevier, vol. 63(C), pages 601-610.
    4. 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).
    5. Eugene Adjei & Jingfang Zhang & Wendiam Sawadgo & Wenying Li, 2024. "Nonlinear effects of conservation reserve program rental rates on land enrollment under varying crop price regimes," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(3), pages 1038-1064, September.
    6. Leah H. Palm-Forster & Scott M. Swinton & Frank Lupi & Robert S. Shupp, 2016. "Too Burdensome to Bid: Transaction Costs and Pay-for-Performance Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1314-1333.
    7. Sergei Schaub & Jaboury Ghazoul & Robert Huber & Wei Zhang & Adelaide Sander & Charles Rees & Simanti Banerjee & Robert Finger, 2023. "The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri‐environmental schemes: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 617-660, 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. Tongzhe Li & Leah H. Palm-Forster & Siddika Bhuiyanmishu, 2025. "Transaction Costs, Participation, and the Cost-Effectiveness of Reverse Auctions: Evidence from a Laboratory Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(2), pages 397-424, February.
    10. Marc N. Conte & Robert M. Griffin, 2017. "Quality Information and Procurement Auction Outcomes: Evidence from a Payment for Ecosystem Services Laboratory Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 99(3), pages 571-591, April.
    11. 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.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    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:isu:genstf:201401010800001041. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.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.