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Getting the Most for Federal Dollars: Landowner Responsiveness to Conservation Incentives

Author

Listed:
  • James Manley

    () (Department of Economics, Towson University)

  • Jason Mathias

    ()

Abstract

Previous research on landowner willingness to retire land into the Conservation Reserve Program (CRP) is based on cross-sectional data prior to 2002. Using enrollment data on a CRP subprogram from 1998 to 2010 we find that incentives matter more for pasture than cropland, and we find that counties producing cattle respond more strongly to current incentives. We also see an idiosyncratic lack of participation in Washington State. Finally, contrary to one recent study, we see that the discounted stream of payments matters to producers as much as up-front incentives. In counties producing few cattle, up-front incentives have virtually no effect.

Suggested Citation

  • James Manley & Jason Mathias, 2012. "Getting the Most for Federal Dollars: Landowner Responsiveness to Conservation Incentives," Working Papers 2012-05, Towson University, Department of Economics, revised Nov 2012.
  • Handle: RePEc:tow:wpaper:2012-05
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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2012-05.pdf
    File Function: First version, 2012
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    More about this item

    Keywords

    Conservation Reserve Program; Conservation Reserve Enhancement Program; agricultural economics; landowner incentives; subsidy response; agricultural policy.;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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