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Conservation Reserve Program: Environmental Benefits Update

Author

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  • Hansen, LeRoy
Abstract
This paper presents the methodology, assumptions, and data used to generate regional and national environmental benefit estimates of the USDA's Conservation Reserve Program (CRP). It's assumed that, without the program, production and conservation practices on CRP lands would be the same as those used on surrounding lands. When range and forest lands are (are not) included as land-use options, 54 (71) percent of the CRP land would be in crop production—which is consistent with past analyses. Soil erosion would be 222 to 248 million tons per year—about 11 percent—higher than the current level. Benefits are estimated by applying environmental benefit models, estimated in previous analyses, to the CRP's estimated effect on erosion and wildlife habitat. Nationally, the CRP is estimated to provide $1.3 billion in annual benefits, which represents 75 to 80 percent of the program's cost. In seven of the 10 USDA Farm Production Regions, the CRP's environmental benefits exceed costs. Thus, reallocating acreage to these regions could increase net program benefits. However, because many benefits could not be estimated, one cannot conclude that regional and national benefits do not exceed costs.

Suggested Citation

  • Hansen, LeRoy, 2007. "Conservation Reserve Program: Environmental Benefits Update," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 267-280, October.
    • Handle: RePEc:cup:agrerw:v:36:y:2007:i:02:p:267-280_00
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    References listed on IDEAS

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    1. Ribaudo, Marc O., 1989. "Water Quality Benefits from the Conservation Reserve Program," Agricultural Economic Reports 308069, United States Department of Agriculture, Economic Research Service.
    2. 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.
    3. 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.
    4. 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.
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    Cited by:

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    2. Rosenberg, Andrew B. & Pratt, Bryan & Arnold, David, 2022. "Land Use Impacts of the Conservation Reserve Program: An Analysis of Rejected CRP Offers," 2022 Allied Social Sciences Association (ASSA) Annual Meeting (Virtual), January 7-9, 2022 316533, Agricultural and Applied Economics Association.
    3. David A. Keiser, 2018. "The Missing Benefits of Clean Water and the Role of Mismeasured Pollution," Center for Agricultural and Rural Development (CARD) Publications 18-wp581, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. repec:ags:aaea22:335920 is not listed on IDEAS
    5. Keiser, David A., 2018. "The Missing Benefits of Clean Water and the Role of Mismeasured Pollution," ISU General Staff Papers 201806290700001048, Iowa State University, Department of Economics.
    6. Richard T. Melstrom & David W. Shanafelt & Carson J. Reeling, 2022. "Coordinating investments in habitat management and economic development," Journal of Bioeconomics, Springer, vol. 24(1), pages 67-91, April.
    7. 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.
    8. Stephen P. Holland & Jonathan E. Hughes & Christopher R. Knittel & Nathan C. Parker, 2015. "Some Inconvenient Truths about Climate Change Policy: The Distributional Impacts of Transportation Policies," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 1052-1069, December.
    9. Stephen P. Holland & Jonathan E. Hughes & Christopher R. Knittel & Nathan C. Parker, 2013. "Unintended Consequences of Transportation Carbon Policies: Land-Use, Emissions, and Innovation," NBER Working Papers 19636, National Bureau of Economic Research, Inc.
    10. Johnson, Kris A. & Dalzell, Brent J. & Donahue, Marie & Gourevitch, Jesse & Johnson, Dennis L. & Karlovits, Greg S. & Keeler, Bonnie & Smith, Jason T., 2016. "Conservation Reserve Program (CRP) lands provide ecosystem service benefits that exceed land rental payment costs," Ecosystem Services, Elsevier, vol. 18(C), pages 175-185.
    11. Youngho Kim, 2024. "Payments for Ecosystem Services Programs and Climate Change Adaptation in Agriculture," Economics Series Working Papers 1054, University of Oxford, Department of Economics.
    12. Margarita Ignatyeva & Vera Yurak & Natalia Pustokhina, 2020. "Recultivation of Post-Mining Disturbed Land: Review of Content and Comparative Law and Feasibility Study," Resources, MDPI, vol. 9(6), pages 1-17, June.
    13. Rosenberg, Andrew B. & Pratt, Bryan & Arnold, David, 2022. "Land Use Impacts of the Conservation Reserve Program: An Analysis of Rejected CRP Offers," 2023 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2023, New Orleans, Louisiana 316533, Agricultural and Applied Economics Association.
    14. Vera V. Yurak & Margarita N. Ignatyeva & Aleksey V. Dushin, 2020. "Valuation of ecosystem services in a region: A review of the international experience," Journal of New Economy, Ural State University of Economics, vol. 21(4), pages 79-103, December.
    15. Hoque, Mohammad Mainul, 2015. "Essays on natural resources and labor economics," ISU General Staff Papers 201501010800005583, Iowa State University, Department of Economics.
    16. Hansen, LeRoy & Ribaudo, Marc, 2008. "Economic Measures of Soil Conservation Benefits: Regional Values for Policy Assessment," Technical Bulletins 184312, United States Department of Agriculture, Economic Research Service.
    17. Xie, Xianxiong & Cui, Yu & Yao, Liuyang & Ni, Qi & Khan, Sufyan Ullah & Zhao, Minjuan, 2022. "Does fallow policy affect rural household income in poor areas? A quasi-experimental evidence from fallow pilot area in Northwest China," Land Use Policy, Elsevier, vol. 120(C).
    18. Rosenberg, Andrew B. & Pratt, Bryan & Arnold, David & Williams, Ryan, 2024. "Land Use of Rejected, Enrolled, and Expiring Fields in the Conservation Reserve Program," Economic Information Bulletin 344828, United States Department of Agriculture, Economic Research Service.
    19. Yu, Zhenning & She, Shuoqi & Xia, Chuyu & Luo, Jiaojiao, 2023. "How to solve the dilemma of China’s land fallow policy: Application of voluntary bidding mode in the Yangtze River Delta of China," Land Use Policy, Elsevier, vol. 125(C).
    20. Xu, Yuelu & Elbakidze, Levan & Yen, Haw & Arnold, Jeffrey G. & Gassman, Philip W. & Hubbart, Jason & Strager, Michael P., 2022. "Integrated assessment of nitrogen runoff to the Gulf of Mexico," Resource and Energy Economics, Elsevier, vol. 67(C).
    21. Glauber, Joseph W. & Effland, Anne, 2016. "United States agricultural policy: Its evolution and impact:," IFPRI discussion papers 1543, International Food Policy Research Institute (IFPRI).

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