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Land Use of Rejected, Enrolled, and Expiring Fields in the Conservation Reserve Program

Author

Listed:
  • Rosenberg, Andrew B.
  • Pratt, Bryan
  • Arnold, David
  • Williams, Ryan

Abstract

The U.S. Department of Agriculture’s Conservation Reserve Program (CRP)—the agency’s largest land retirement program—pays landowners a yearly rental fee to plant and maintain environmentally beneficial land covers on eligible portions of their land instead of crops. In this report, the authors examine land-use outcomes of parcels that were both offered and rejected from General Signup 49, the auction component of CRP that was administered in 2016. Because Signup 49 featured an unusually high rejection rate (81.6 percent), many offers rejected from the auction in this CRP Signup would likely have been accepted in more typical Signups. Examining land-use choices of these rejected offers helps identify what land uses would have been replaced by CRP land covers if the Signup had featured a higher acceptance rate. The study finds that rejected CRP land goes into a variety of land covers, including cropland, grassland, and Continuous Signup CRP (allowing environmentally sensitive land to be enrolled at any time). The study also finds that new program applicants who are rejected are more likely to be in cropland after the Signup, if not in the CRP, compared to returning participants. Finally, the study finds large geographic differences in land-use decisions of rejected CRP applicants and discusses how the current design of the CRP influences its impacts.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:uersib:344828
    DOI: 10.22004/ag.econ.344828
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    References listed on IDEAS

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    1. Hansen, LeRoy, 2007. "Conservation Reserve Program: Environmental Benefits Update," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 267-280, October.
    2. Hellerstein, Daniel & Higgins, Nathaniel & Roberts, Michael, 2015. "Options for Improving Conservation Programs: Insights From Auction Theory and Economic Experiments," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 01, pages 1-1, February.
    3. Cramton, Peter & Hellerstein, Daniel & Higgins, Nathaniel & Iovanna, Richard & López-Vargas, Kristian & Wallander, Steven, 2021. "Improving the cost-effectiveness of the Conservation Reserve Program: A laboratory study," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    4. Ribaudo, Marc O., 1989. "Water Quality Benefits from the Conservation Reserve Program," Agricultural Economic Reports 308069, United States Department of Agriculture, Economic Research Service.
    5. 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.
    6. David A. Fleming, 2014. "Slippage effects of land-based policies: Evaluating the Conservation Reserve Program using satellite imagery," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 167-178, November.
    7. Bigelow, Daniel & Claassen, Roger & Hellerstein, Daniel & Breneman, Vince & Williams, Ryan & You, Chengxia, 2020. "The Fate of Land in Expiring Conservation Reserve Program Contracts, 2013-16," Economic Information Bulletin 301138, United States Department of Agriculture, Economic Research Service.
    8. Ruben N. Lubowski & Michael J. Roberts, 2005. "How Cost-Effective Are Land Retirement Auctions? Estimating the Difference between Payments and Willingness to Accept in the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1239-1247.
    9. JunJie Wu, 2000. "Slippage Effects of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 979-992.
    10. Hendricks, Nathan P. & Er, Emrah, 2018. "Changes in cropland area in the United States and the role of CRP," Food Policy, Elsevier, vol. 75(C), pages 15-23.
    11. Ruiqing Miao & Hongli Feng & David A. Hennessy & Xiaodong Du, 2016. "Assessing Cost-effectiveness of the Conservation Reserve Program (CRP) and Interactions between the CRP and Crop Insurance," Land Economics, University of Wisconsin Press, vol. 92(4), pages 593-617.
    12. Andrew B. Rosenberg & Bryan Pratt, 2024. "Land use impacts of the Conservation Reserve Program: An analysis of rejected offers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1217-1240, May.
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