RT Journal Article
SR Electronic
T1 The Effect of the Conservation Reserve Program on Land Values
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 1
OP 21
DO 10.3368/le.86.1.1
VO 86
IS 1
A1 JunJie Wu
A1 Haixia Lin
YR 2010
UL http://le.uwpress.org/content/86/1/1.abstract
AB This paper evaluates the effects of the Conservation Reserve Program (CRP) on land values. A theoretical model is presented to analyze the interaction between farmers’ CRP participation decisions and land values. Empirical models are estimated to evaluate the effects of the CRP on land values. Results suggest that CRP participation had the largest effects in the Mountain, Southern Plains, and Northern Plains regions, where it increased average farmland values by 5% to 14%, 4% to 6%, and 2% to 5%, respectively. The CRP also had a statistically significant effect on developed land values, but the percentage increases were smaller. Implications of the results for the design of conservation programs are discussed. (JEL Q24, Q28)