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The Impact of the Conservation Reserve Program on Nearby Property Values

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  • Wibbenmeyer, Matthew

    (Resources for the Future)

  • Liao, Yanjun (Penny)

    (Resources for the Future)

  • Drunkenmiller, Hannah
  • Iovanna, Richard

Abstract

Conservation programs are often viewed as competing with local economic activity, yet they may also generate environmental amenities for nearby communities. We estimate how land enrolled in the Conservation Reserve Program (CRP)—the largest US payments-for-ecosystem-services program—affects residential property values. Using nationwide field-level CRP data from 2012–2022 linked to home transactions, we apply a repeat-sales hedonic framework to identify how changes in nearby CRP land influence transaction prices of the same properties. We find that CRP enrollment produces meaningful appreciation of home values: a 10-hectare increase in CRP land within 1,000 meters raises home values by roughly 0.5 percent, with especially strong effects for land converted to tree cover. Placebo and robustness tests confirm that results are not driven by county-level economic trends or development pressure. Our estimates imply that CRP lands increase US residential property values by $48–68 million annually, highlighting local benefits beyond payments to participating landowners.Keywords: Payments for Ecosystem Services, Land Conservation, Environmental Amenities, Hedonic Pricing

Suggested Citation

  • Wibbenmeyer, Matthew & Liao, Yanjun (Penny) & Drunkenmiller, Hannah & Iovanna, Richard, 2026. "The Impact of the Conservation Reserve Program on Nearby Property Values," RFF Working Paper Series 26-02, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-26-02
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    References listed on IDEAS

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    1. Robbin Shoemaker, 1989. "Agricultural Land Values and Rents under the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 65(2), pages 131-137.
    2. Aspelund, Karl M. & Russo, Anna, 2025. "Additionality and Asymmetric Information in Environmental Markets: Evidence from Conservation Auctions," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361138, Agricultural and Applied Economics Association.
    3. Kovacs, Kent & West, Grant & Nowak, David J. & Haight, Robert G., 2022. "Tree cover and property values in the United States: A national meta-analysis," Ecological Economics, Elsevier, vol. 197(C).
    4. JunJie Wu & Haixia Lin, 2010. "The Effect of the Conservation Reserve Program on Land Values," Land Economics, University of Wisconsin Press, vol. 86(1), pages 1-21.
    5. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    6. 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.
    7. Liu, Yue & Yao, Shunbo & Lin, Ying, 2018. "Effect of Key Priority Forestry Programs on off-farm employment: Evidence from Chinese rural households," Forest Policy and Economics, Elsevier, vol. 88(C), pages 24-37.
    8. 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.
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    1. Liao, Yanjun (Penny) & Wibbenmeyer, Matthew & Drunkenmiller, Hannah & Iovanna, Richard & Thompson, Alexandra & Holmes, Brandon, 2026. "Conservation and Community: The Local Economic Impacts of the Conservation Reserve Program," RFF Reports 26-02, Resources for the Future.

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