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Are farmers' decisions to work off the farm related to their decisions to participate in the conservation reserve program?

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  • Hung-Hao Chang
  • Richard Boisvert

Abstract

Since both working off the farm and participating in the Conservation Reserve Program (CRP) remove important resources from US agricultural production, we utilize two econometric specifications to test hypotheses regarding whether these two decisions by farmers are independent. We find statistical evidence that decisions to participate in CRP and work off the farm are correlated. Characteristics of farm households and farm operations affect both decisions directly and indirectly, as do local economic conditions and participation in other farm programs. To illustrate their importance, we simulate the combined direct and indirect effects of changes in decoupled payments and farm size on the probabilities of farm households engaging in these two activities. We also illustrate that the probability of engaging in these two activities depends on whether the farm is located in a state, or local agricultural district or participates in a related farmland retention program.

Suggested Citation

  • Hung-Hao Chang & Richard Boisvert, 2009. "Are farmers' decisions to work off the farm related to their decisions to participate in the conservation reserve program?," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 71-85.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:71-85
    DOI: 10.1080/00036840701720861
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    Citations

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    Cited by:

    1. Murphy, Geraldine & O’Donoghue, Cathal & Hynes, Stephen & Murphy, Eithne, 2014. "Modelling the Participation Decision in Agri-Environmental Schemes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183069, European Association of Agricultural Economists.
    2. Ryan, Mary & O’Donoghue, Cathal & Hynes, Stephen & Jin, Yan, 2022. "Understanding planting preferences – A case-study of the afforestation choices of farmers in Ireland," Land Use Policy, Elsevier, vol. 115(C).
    3. Alessandro Corsi & Cristina Salvioni, 2012. "Off- and on-farm labour participation in Italian farm households," Applied Economics, Taylor & Francis Journals, vol. 44(19), pages 2517-2526, July.
    4. Joshua M. Duke & Robert J. Johnston & Amy L. Shober & Zhongyuan Liu, 2023. "Improving targeting of farmers for enrollment in agri‐environmental programs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1072-1096, June.
    5. Lee, Meongsu, 2018. "Impacts of Net Returns Per Acre on Land Use after Conservation Reserve Program Contract Expiration," 2018 Annual Meeting, August 5-7, Washington, D.C. 273877, Agricultural and Applied Economics Association.
    6. Murphy, Geraldine & Meredith, David, 2015. "A typology of cattle farmers in Ireland: An overview of data, method and indicators," 2015 Conference, August 9-14, 2015, Milan, Italy 212518, International Association of Agricultural Economists.
    7. Sergei Schaub & Jaboury Ghazoul & Robert Huber & Wei Zhang & Adelaide Sander & Charles Rees & Simanti Banerjee & Robert Finger, 2023. "The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri‐environmental schemes: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 617-660, September.
    8. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
    9. Muhammad Yaseen & Neha Thapa & Supawan Visetnoi & Shoukat Ali & Shahab E. Saqib, 2023. "Factors Determining the Farmers’ Decision for Adoption and Non-Adoption of Oil Palm Cultivation in Northeast Thailand," Sustainability, MDPI, vol. 15(2), pages 1-19, January.

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