Competing farm programs: Does the introduction of a risk management program reduce the enrollment in the Conservation Reserve Program?
Journal of the Agricultural and Applied Economics Association2022Vol. 1(3), pp. 320–333
Citations Over Time
Abstract
Abstract Government‐supported farm programs can provide farm operators with different economic incentives regarding the use of their land. We study two US farm programs relevant to hay and pastureland, the Conservation Reserve Program (CRP) and Pasture, Rangeland, and Forage (PRF) Index Insurance. Using county‐level enrollment and availability data, we find that the introduction of PRF reduces enrollment in CRP. This interaction potentially returns environmentally sensitive farmland back into production. We also document the heterogeneity of the effects over time and the dynamic effects across the length of exposure.
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